Renault, Nissan Motor and Mitsubishi Motors chiefs to hold meeting to discuss alliance on 29 November - report (translated)
29 NOV 2018
The chiefs of Renault [EPS:RNO], Nissan Motor [TYO:7201] and Mitsubishi Motors [TYO:7211] are to hold a meeting on 29 November for discussions on the alliance between the companies, the first since the arrest of Nissan's former chairman Carlos Ghosn, the Nihon Keizai Shimbun reported.
The unsourced Japanese-language report disclosed that Renault Chief Operating Officer, Thierry Bollore, who is acting as CEO while Ghosn remains in detention, will attend the meeting, as will Nissan CEO Hiroto Saikawa and Mitsubishi Chairman and CEO Osamu Masuko. It is expected that Renault will emphasize its aim of maintaining the status quo, while Nissan is seeking to revise the current investment ratio, which favors Renault, the report said, without citing any source.
Prior to the meeting, French economy and finance minister Bruno Le Maire remarked to a France-based television network, on 28 November, that he does not want any changes to the share ratios held by Renault and Nissan in each other. Also, on 25 November Le Maire sought to restrain Nissan by saying that Renault’s CEO should remain the head of the alliance. According to the report, France fears the impact on maintaining domestic employment if the roles in the alliance between the three companies are strengthened at the expense of the French government.
Currently, Renault holds a 43.4% stake in Nissan, while Nissan holds a 15% stake in Renault, the report said, adding that the French government holds a 15% stake in Renault. To round out the alliance, Nissan holds a 34% stake in Mitsubishi Motors.
The report went on to say that the moves by the French government in 2014, under a law passed by former President Francois Hollande, and promoted by current President Emmanuel Macron (who was economy and finance minister at that time), raised the possibility that it could dramatically increase its control over Nissan, drawing fierce opposition from the Japanese automaker. Although Ghosn protected Nissan at the time, with his arrest there is a possibility that the French government will be able to bolster its position over the alliance, the report said.
Nissan Motor has a market capitalization of JPY 4.1trn (USD 36bn).