Nissan seeks to dominate Renault alliance as governments demand stability

PARIS / TOKYO (Reuters) – France told reporters on Wednesday that its partner, Nissan Ghosn, wanted to obtain evidence from Nissan's industrial partner to support charges of misconduct against it. added that Paris and Tokyo wanted a stable automobile alliance.

While Japan took a similar stance, claiming to want the stability of the Nissan-Renault partnership after the arrest of Ghosn, a Nissan executive said the Japanese automaker was looking for ways to weaken the influence of its French partner.

Mitsubishi Motors' 19-year-old alliance, extended to Japan in 2016, was shocked by the sudden arrest of Ghosn in Japan on Monday, as the 64-year-old group president and industry star was accused of bad financial conduct.

Ghosn, a Brazilian, Lebanese and French citizen, personally shaped the alliance and pledged to consolidate it with a deeper rapprochement, which did not convince all parties.

"We need to return to the initial idea of ​​a win-win relationship," a Nissan long-time senior executive told reporters at a news conference held under the guise of anonymity. This should be "a more equal relationship than before".

In addition to geography and culture, the links between companies are complicated by the role of the French state.

The French government holds a 15% stake in Renault, which holds a 43.4% stake in Nissan. The Japanese company holds a 15% non-voting interest in Renault and a 34% stake in Mitsubishi Motors

Nissan's management said one option being considered should be the reduction of Renault's stake in Nissan, which had recovered after the bankruptcy of Ghosn and which is now more profitable than its French partner.

In Japan, it is feared that France is finally seeking to take control of Nissan and Mitsubishi. In France, Ghosn is suspected of being targeted to harm the French influence. Trust has been undermined on both sides.

"The Ministry of Economy, Trade and Industry feels that, at this rate, Nissan and Mitsubishi will be seized by the French government," said a senior official familiar with the government's ideas. Japanese.

In Paris, the French Finance Minister, Bruno Le Maire, sought to ease tensions, saying that stability remained essential for France and Japan. He said he wanted to see the evidence against Ghosn before drawing any conclusions, and added that he would meet his Japanese counterpart on Thursday for talks.

"At this point, we have no evidence to support the charges against Mr. Carlos Ghosn," said The Mayor to the press. "I want to emphasize the request of Renault's Board of Directors that Nissan share all the evidence it has."

Nissan announced the dismissal of Ghosn as president on Thursday.

On Tuesday, Renault hired its chief operating officer and a senior member of the board of directors to replace Ghosn, but the board refrained from sending him back pending the details of the allegations, a decision that would win him over. time for an accelerated and permanent succession process.

AUTO TUMUL

Ghosn, one of the world's most renowned automotive executives, is also the head of Renault and the president of Mitsubishi Motors. He has often stated that his efforts in favor of integration have been hampered by the participation of the French government in Renault.

On Monday, Nissan CEO Hiroto Saikawa described Nissan as a victim of Ghosn's alleged misdeeds. But Nissan itself is facing a scrutiny of the case of financial misconduct. The Asahi newspaper reported on Wednesday that prosecutors were filing lawsuits, filing lawsuits against the Japanese automaker.

Ghosn having potentially disappeared from the scene, the future shape of the alliance is the subject of intense speculation on the part of investors. Mitsubishi Motors chairman, Osamu Masuko, said Tuesday that it could be difficult to manage without the unifying figure of Ghosn.

On Wednesday, Renault shares rose 1.3% after falling more than 9% this week. Nissan closed up 0.4% after falling nearly 6% a day earlier. Mitsubishi Motors closed down 1% after losing nearly 7% Tuesday.

The success of the alliance, which helps automakers develop products and control costs, is crucial for members at a time when the industry is undergoing major changes in consumer tastes and where its competitors are investing Billions of dollars in new growth areas such as Automated and Connected Vehicle Systems.

Given these considerations, the Japanese and French governments supported the alliance.

It is "a symbol of Franco-Japanese industrial success," said the main Japanese government spokesman, calling for a "stable relationship" between the three automakers.

Chart: Shares in Nissan, Renault and Mitsubishi Motors – tmsnrt.rs/2R08nep

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Nissan said Monday that an internal investigation triggered by a whistleblower's disclosure had revealed that Mr. Ghosn had been guilty of wrongdoing, including the personal use of the company's money and the under-reporting of income that he had been earning for years.

Ghosn was arrested by Japanese prosecutors who said he and his representative, Greg Kelly, had conspired to downplay Ghosn's compensation at Nissan over the next five years from 2010, claiming it accounted for about half 10 billion yen ($ 89 million).

Ghosn and Kelly, who were also arrested, did not comment on the charges and Reuters was not able to reach them. Kyodo News reported Wednesday that the Tokyo District Court had decided that Ghosn and Kelly would be detained for another 10 days.

The Japanese business daily Nikkei reported on Tuesday that Ghosn had received a stock price compensation of about 4 billion yen over a five-year period until March 2015, although this was not mentioned in the statements. financial statements.

Prosecutors also plan to interrogate Saikawa on a voluntary basis, NHK reported Wednesday, citing unidentified sources.

Prosecutors were not immediately able to comment. A spokesman for Nissan declined to comment.