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PARIS / TOKYO – With the appointment, on Thursday, of a new CEO, Renault has closed the book on the Carlos Ghosn era and reopened the door to negotiations with Nissan Motor while the two automakers were having badly to define the future alliance.
Jean-Dominique Senard, General Manager of the Michelin tire manufacturer, has been chosen to replace the resigned president. Senard will represent Renault in all negotiations with Nissan as their relations have deteriorated since the arrest of Ghosn in November, which was previously the linchpin of the alliance.
"I want our relationship to be as happy as possible" with Nissan and another member of the alliance, Mitsubishi Motors, said the new chairman.
Senard will report to the Board of Directors, while the new Chief Executive Officer, Thierry Bollore, will take care of the operational side of the business. The next head of the Dutch joint venture that manages the alliance – a position previously held by Ghosn as head of Renault – remains to be determined, according to the French company.
This appointment seems to have already given a more positive tone, while Nissan had announced Thursday the organization of an extraordinary shareholders meeting in mid-April, after having twice rejected Renault's calls to do so. . The Japanese automaker will remove from its Ghosn board and former executive director Greg Kelly, who was arrested alongside Ghosn, and appoint a replacement who will be appointed by Renault.
"We would like to have [Senard] Join our board and discuss governance improvements together, "Nissan director Hiroto Saikawa told reporters late on Thursday.
The Nissan CEO revealed Friday morning that he had spoken to Senard over the phone. While refusing to comment on the details, Saikawa told reporters: "This is a new start, I would like to have enough communication" with Renault's new management.
Mr Ghosn had led the three alliance members as president until November, when Nissan and Mitsubishi fired him after his arrest in Japan for allegations of financial misconduct. Renault has retained him despite his absence, which has caused concern at Nissan, that the management of the alliance could get bogged down.
The appointment of Senard gives Nissan an official dialogue partner, a development well received by Saikawa.
"It was difficult for councils to communicate with each other since the November affair," he said on Thursday. "It's a major step for the alliance."
Senard joined Michelin in 2005. In 2012, he became the first person outside the founding family to lead the company. He is known for his dialogue-oriented management style, contrasting with Ghosn's top-down leadership.
However, Senard should follow the wishes of the French government, Renault's main shareholder, in discussions with Nissan on the contentious issue of the capital relations of the partners.
Paris sent a delegation to Japan last week to inform government officials of its intention to join the two automakers. The delegation also met with Saikawa, although the Nissan chief stated that the integration had not been discussed.
The French Minister of Economy, Bruno Le Maire, later said that the renegotiation of capital ties of the alliance was "not on the table". However, France has long sought to make this partnership "irreversible", given that Renault relies on its Japanese partner more important for its profits, research and development. Ghosn would have considered a merger before his arrest.
Deciding when and how to approach the subject with Nissan will be a delicate task for Senard. As in the past, the Japanese manufacturer will oppose any project to strengthen the influence of Renault.
"Having a strong new management team is the first step in discussions between Renault and Nissan," said Takaki Nakanishi, chairman of the Nakanishi Research Institute. "Senard should play the role of coordinator between Renault, Nissan and the French government, the latter intervening significantly in the discussions on the alliance.It considers this as a national policy."
The turbulence at Renault and Nissan comes in a major upheaval in the global automotive industry. This month alone, Ford Motor and Volkswagen have launched a global partnership, while Toyota Motor and Panasonic have announced plans to build electric car batteries together. Long and difficult negotiations could undermine the long-term strategy of the Renault-Nissan alliance.
Seiji Sugiura, a senior badyst at Tokyo's Tokai Research Institute, warned that any battle over the alliance's leadership could distract companies at a critical time, as the auto industry was facing a global slowdown. New car sales in China declined in 2018 for the first time in 28 years, while the sector was also facing the emergence of disruptive players such as Google.
"Nissan and Renault are already behind the world market," added Sugiura. "Nissan has not been able to release a new model every year recently, and the company is now paying the price for inappropriate governance in recent years."
Writer Nikkei Eri Sugiura in Tokyo contributed to this report.
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