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TOKYO – Renault has the right to choose the leaders of Nissan Motor, based on a document signed by both parties after the French automaker rescued its Japanese partner nearly two decades ago, Nikkei learned.
After the arrest of former president Carlos Ghosn last week, Renault is expected to pinpoint senior officials under the terms of its alliance, further complicating the Japanese automaker's quest to balance its relationship.
Renault has the right to appoint Nissan executives at the level of chief of operations and above, while the board of the Japanese company may have one more director in the ranks of Nissan than in that of Renault, according to the contract. part of the Alliance Restated Alliance.
The deal, created after Renault rescued Nissan from bankruptcy in 1999, "is the sacred text of our alliance," said a Nissan source.
The French manufacturer Nissan and its third partner Mitsubishi Motors could hold a meeting at the highest level this week, even if the terms of the agreement could add to the fight for power within the alliance in the United States. The absence of Ghosn.
The Nissan Board of Directors unanimously decided to remove Mr. Ghosn as chairman and representative of the board of directors on Thursday, a few days after his arrest as part of a salary scandal. Prior to the meeting, Renault had told the Japanese partner that it wished to appoint its successor, but Nissan subsequently rejected that request in a letter.
Nissan wants to choose its next president among its Japanese directors. On the basis of the alliance agreement, Renault could require it to select names for positions such as that of CEO, currently held by Hiroto Saikawa.
The Japanese manufacturer currently has nine directors, including Ghosn and Greg Kelly, a former director also being arrested on charges of financial misconduct. Both should be removed at an upcoming Nissan shareholders' meeting, which will leave only two members of Renault.
The alliance agreement was amended in 2015 to allow Nissan to unilaterally increase its stake in Renault if the French government, Renault's largest shareholder, intervened in Nissan's decisions.
Renault currently holds a 43.4% stake in Nissan, while Nissan holds only 15% of its French counterpart and has no voting rights. But if Nissan was to increase its stake to 25%, the Japanese law allows it to cancel the voting rights of Renault.
"The unequal capitalist relationship has allowed former President Ghosn to become a dictator," said a Nissan source. But any extreme attempt to balance their dynamics may be met with resistance from Renault and the French government.
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