Nissan intends to review alliance with Renault
TOKYO: Nissan Motor Co CEO Hiroto Saikawa expressed an intention yesterday to review the automaker’s long-standing alliance with Renault SA, following last week’s arrest of its former chairman Carlos Ghosn for alleged financial misconduct, according to company sources.
“The alliance is not equal,” Saikawa was quoted as saying at his first meeting with company employees to explain the arrest of their charismatic boss, who has played a key role in the alliance that is viewed as favoring Nissan’s largest shareholder Renault.
Saikawa also said he wanted to reflect more “the will of Nissan” in building relations with Renault, according t o the sources.
He also apologised at the meeting held at Nissan’s headquarters in Yokohama, which was broadcast live to factories and offices nationwide, for the undermining of trust in the company.
Nissan dismissed Ghosn as chairman at an emergency board meeting last Thursday after his arrest on Monday.
While Nissan has said the alliance “remains unchanged,” the latest remark by Saikawa indicates the Japanese company’s desire to seek a bigger say in it.
Even though Nissan has contributed about 50% of the French automaker’s net income in recent years, Renault owns a 43.4% stake in Nissan, which holds a 15% stake in its French peer but without voting rights and 34% in Mitsubishi Motors Corp.
Ghosn was initially dispatched by Renault in 1999 as part of a capital tie-up to save Nissan from bankruptcy. He was the crucial linchpin of the complex tripartite partnership, which also involved the French government that is the top shareholder in Renault with a stake of about 15%.
French Finance Minister Bruno Le Maire told BFM TV on Sunday that it was desirable for the alliance to continue to be led by a person from Renault. He also said he hoped to maintain the cross shareholding of the group. The top executives of the three automakers are making arrangements to hold a meeting this week to discuss how to run the three-way alliance, sources familiar with the matter have said.
Ghosn was arrested for allegedly underreporting his remuneration by around five billion yen ($44 million) for five years through fiscal 2014. He received nearly 10 billion yen during that period.
Nissan representative director Greg Kelly was arrested along with Ghosn on suspicion of conspiracy and was dismissed from the post at the emergency board meeting.
Both Ghosn and Kelly have denied the charges, according to sources close to the matter.
Nissan has said an internal investigation uncovered “significant” misconduct by Ghosn, including underreporting his remuneration and misappropriation of funds to cover private expenses, which continued for a long period.
It also said Kelly was “deeply” involved. Renault, for its part, has launched an investigation into possible misconduct by Ghosn in relation to his remuneration and company assets, with the outcome expected as early as this week, according to Le Maire.