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Renault chairman says alliance needs a rebalance in spirit

Nissan, Renault and Mitsubishi Motors Heads/Bloomberg

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Jean-Dominique Senard replaced Carlos Ghosn in January at the head of Renault and has been working to keep the partnership together ever since.

Monday 15, April 2019

(Bloomberg) --Renault Chairman said that the alliance with Nissan and Mitsubishi Motors needs to be re-balanced in spirit to counter fears among the Japanese carmakers that he wants to dominate the decades-old partnership.

Jean-Dominique Senard, Renault’s Chairman, said, “There was a lot of worry at the start and I can understand that, about whether Jean-Dominique Senard was going to be dominant, would want to impose his views.”

“There is no desire to dominate, we need a blank slate,” Senard said.

The lopsided cross-shareholding between Renault and Nissan does not reflect the reality of their relations and the Alliance’s new governance is working well, he said. A better framework has helped overcome forces that were trying to break the partnership apart.

Ghosn led all three companies at the same time until his arrest in November in Tokyo on charges of financial misconduct and his departure left the Alliance reeling from a climate of suspicion. Japanese authorities are now questioning Ghosn over new allegations that he funnelled millions of dollars from Nissan for his own purposes. He has denied all charges.

Ghosn’s removal laid bare tensions within the Alliance stemming from Renault holding a 43 per cent stake in Nissan with voting rights, while the Japanese carmaker holds a 15 per cent in Renault stake without voting rights.

Additionally, Nissan has also been uncomfortable with the French government’s influence via a 15 per cent stake in Renault that carry extra voting rights.

The chairman said that the Japanese culture dictates that legitimacy comes from not imposing views, equal treatment and the desire not to humiliate.

“We need to know how to treat them as equals, the feeling was this wasn’t done in the past,” added Senard.

The French executive said an audit of RNBV, an Amsterdam-based company running the Alliance, isn’t yet complete. Renault said earlier this month that Ghosn had made questionable payments to a distributor in the Middle East and an outside lawyer. That probably triggered Ghosn’s latest arrest, according to his lawyer.

 

TAGS : Renault, Mitsubishi Motors , Nissan Motor Corporation , RNBV, Jean-Dominique Senard, Carlos Ghosn

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