Renault stops short of firing CEO Ghosn
Renault SA stopped short of dismissing long-time chief executive officer (CEO) 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 two-decade-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 long-time 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 carparts 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 $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 on Monday the company is looking into potential financial wrongdoing at the alliance’s Amsterdam-based joint venture RNBV, three people familiar with the development said.
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