Renault names interim leader in wake of misconduct claims
Automaker takes no action against CEO despite arrest, requests report on probe
Renault SA stopped short of dismissing long-time chief executive Carlos Ghosn despite his arrest in Japan over allegations of financial impropriety, though the French automaker named Thierry Bollore to lead on a temporary basis. Bollore, the heir apparent since he was elevated to chief operating officer in February, was named interim deputy CEO, with the same powers as Ghosn, Renault said in a statement late Tuesday. Philippe Lagayette will chair the board’s meetings as lead independent director. Renault’s board took no action against Ghosn and asked Japanese partner Nissan Motor Co. to hand over findings on his alleged misdeeds. The board took care to avoid escalating a feud with Nissan and didn’t discuss their alliance’s future in depth, a person familiar with the matter said. The caution makes sense because there’s peril all around: Japan is considering building a case against Nissan itself for misleading financial reports, the Asahi newspaper reported. “At this stage, the board is unable to comment on the evidence seemingly gathered against Mr. Ghosn by Nissan and the Japanese judicial authorities,” Renault’s board said in the statement. The crisis has exposed the depth of tension between the French and Japanese companies about the nature of their relationship. Ghosn was pushing to merge with Nissan to solidify their twodecade-old alliance, as Bloomberg reported in March. His one-time protege, Nissan CEO Hiroto Saikawa, had publicly played down that idea and had harsh words for Ghosn when he unveiled the allegations against his longtime mentor on Monday. Any other discussion on the future of the alliance between the carmakers is now on hold until Nissan’s board meets to decide on Ghosn’s fate, said the person. Bollore, 55, a soft-spoken French national from Brittany, joined Renault in 2012 from car-parts supplier Faurecia SA, where he rose through the ranks to become vice-president with responsibilities for global industry, quality and packaging. He started his career at tiremaker Michelin, working there for a number of years at the same time as Ghosn, who has called him a “good candidate” to become Renault CEO. Ghosn stands accused of under-reporting income of about US$44 million and misusing company funds at Nissan, where he was also chairman. The developments cast doubt over the future of the long-standing Renault-Nissan-Mitsubishi alliance, held together by Ghosn’s towering presence. Nissan told Renault board members Monday the company is looking into potential financial wrongdoing at the alliance’s Amsterdam-based joint venture RNBV, three people familiar with the matter said. The French government, Renault’s biggest shareholder, distanced itself from Ghosn in seeking a replacement. Finance Minister Bruno Le Maire said the 64-yearold executive was “not in a position to run the group,” yet stopped short of demanding his ouster. Both Le Maire and his Japanese counterpart, Economy Minister Hiroshige Seko, reaffirmed their support for the alliance. Ghosn hasn’t commented on the developments. Lagayette, 75, has been on Renault’s board since 2007, where he leads the audit, risks and ethics committee. He’s also a member of the remuneration committee. Set to leave Renault in 2022, Ghosn had been laying the groundwork to ensure a future for the alliance, including the option of a merger. The setup has come under pressure from Nissan in recent years to address a lopsided balance of power after the Japanese company consistently outgrew Renault in sales and profits. Through complex cross-shareholding arrangements, Renault owns 43 per cent in Nissan, including voting rights, while Nissan owns a 15-per-cent non-voting stake in Renault. In a letter sent to Renault employees on Monday, Bollore expressed full support for Ghosn and pledged to preserve the alliance.