Renault’s interim deputy chief executive says he would safeguard carmaker’s interests in alliance with Nissan

Renault owns 43.4 percent of Nissan, while Nissan has only a 15-percent non-voting share in Renault. Yet Nissan is 60 percent bigger than the French automaker by sales.

Reuters November 23, 2018 18:07:30 IST
Renault’s interim deputy chief executive says he would safeguard carmaker’s interests in alliance with Nissan

Paris: Renault’s interim deputy chief executive said he would safeguard the carmaker’s interests in its alliance with Nissan Motor Co, following the ouster of Carlos Ghosn as Nissan chairman over financial misconduct allegations.

The Nissan board’s vote to remove Ghosn as chairman on Thursday drew a firm line under his stewardship of the nearly two-decade-old alliance.

“I will make sure we guarantee our stability and stay focused on our missions to preserve the interests of Renault and the sustainability of the alliance,” Thierry Bollore, named as Ghosn’s stand-in at Renault after the industrial star’s arrest in Japan, said in a video to shareholders.

Renaults interim deputy chief executive says he would safeguard carmakers interests in alliance with Nissan

Renault's acting deputy chief executive Thierry Bollore. Reuters

The shareholding structure among Renault, Nissan and Mitsubishi, which was brought into the alliance in 2016, has become a source of tension alongside the removal of Ghosn, with Nissan unhappy with what it sees as a junior partner status.

Renault owns 43.4 percent of Nissan, while Nissan has only a 15-percent non-voting share in Renault. Yet Nissan is 60 percent bigger than the French automaker by sales.

The relationship is further complicated by the role of the French state, which holds 15 percent of Renault and enjoys double-voting rights.

Ghosn and former Nissan Representative Director Greg Kelly are being investigated over alleged conspiracy to understate Ghosn’s compensation over five years from fiscal 2010 by about half of the actual 9.998 billion yen ($88.9 million).

On Friday, the Asahi newspaper reported that Japanese prosecutors are likely to build a new criminal case against Ghosn for understating his remuneration by 3 billion yen ($27.0 million) over three years from fiscal 2015.

In the wake of Ghosn’s spectacular downfall, French and Japanese government ministers have reaffirmed support for the Renault-Nissan alliance, which was enlarged to include Mitsubishi in 2016.

“Our group is perfectly organized to ensure the continuity of the company’s business,” Bollore said.

Updated Date:

also read

Nissan chairman Carlos Ghosn arrested on charges of corruption: Report
auto

Nissan chairman Carlos Ghosn arrested on charges of corruption: Report

Nissan had been conducting a probe into Ghosn for months after receiving a whistleblower report.

Renault board maintains Carlos Ghosn as CEO; says internal review found pay package legal
Business

Renault board maintains Carlos Ghosn as CEO; says internal review found pay package legal

Renault kept Carlos Ghosn on as CEO after his arrest in Tokyo, but launched an enquiry into his pay package and named a deputy CEO, Thierry Bollore, to ensure day-to-day management.

Carlos Ghosn to spend Christmas, New Year in jail; rearrested, detention extended for 10 days
Business

Carlos Ghosn to spend Christmas, New Year in jail; rearrested, detention extended for 10 days

Ghosn was re-arrested on Friday based on suspicions that around October 2008 he shifted personal trades to Nissan to make it responsible for 1.85 billion yen ($16.6 million) in appraisal losses, prosecutors said.