The Chairman of the Board of Directors of Renault SA (Renault), Jean-Dominique Senard denied the allegations that hurled at the Renault-Nissan alliance saying the two companies failed and was breaking up its two decades partnership. Critics’ attack started surfacing after the financial crimes related to Nissan’s former longtime boss, Carlos Ghosn and his fleeing from Japan despite he was under the house detention.
Alliance Was a ‘Real Desire’
On Thursday, January 16, 2020, Renault’s chairman reminded that the alliance with Nissan Motor Ltd. (Nissan) which has been shaping over two decades was forged under a ‘real desire’ and the alliance stayed intact now. Senard, who led the tire maker Michelin, has become the de facto most senior member in the partnership after the arrest of the former CEO, Ghosn.
Denying the allegations, Senard stated on Thursday’s statement, “there is a common desire to associate our strategic plans and a real desire to make this alliance a success.” His statement was a response to the critics alleging that the alliance was at the edge of collapsing.
Nissan, the Japanese automobile manufacturing company, has been part of the Renault-Nissan-Mitsubishi alliance since 1999. Under the strategic partnership, the French carmaker Renault had owned 43.4% of Nissan while the latter owned 15% of the French car manufacturing company.
The alliance, being the longest-running cross-border partnership in the automotive industry, had stormed into internal conflicts after the Nissan’s former CEO, Ghosn was arrested in November 2018 in Tokyo on charges of misuse of the company’s assets and financial misappropriation.
The Franco-Japanese alliance was further affected by Ghosn’s escape from Tokyo to Lebanon while he was under the house detention by the Japanese Government. After taking asylum in Lebanon, Ghosn also put the same allegation saying that he was the victim of a plot made by the companies to overthrow him. He further alleged that the alliance has gone into ‘masquerade’ now.
Installing New Board Members
Nissan officials also defended its partner’s stance saying that it strongly opposed Ghosn’s allegation and the 20 years old alliance stayed strong as usual. Makoto Uchida took charge as a new CEO of Nissan from December 1, 2019, after Ghosn’s suspension.
Senard said the selection of the board members would be started after the issues of the management team got solved in Renault. As Reuters reported, the interim Renault CEO Clotilde Delbos is likely to be replaced by Luca de Meo, who recently stepped down from the CEO of Volkswagen.
In order to avoid another mistake, Senard announced that the company would create a four members board to oversee the alliance and would start launching new joint projects. Referring to the recent allegation, analysts shared the view that the Renault-Nissan alliance was important for both companies’ fortunes as the automobile market turned out to be a fierce competition.
Earlier this week, French Finance minister Bruno Le Maire said Renault’s new CEO would be announced in a few days. It is also a major concern for the French Government as it owns 15% of Renault share.
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