Published: Fri, March 15, 2019
Economy | By

After Ghosn, Nissan, Renault, Mitsubishi form new board

After Ghosn, Nissan, Renault, Mitsubishi form new board

The removal of Ghosn, credited for rescuing Nissan from near-bankruptcy in 1999, had caused much uncertainty about the future of the alliance and some speculation the partnership could even unravel.

"In response to latest press reports, Renault confirms that it is in discussions with its Alliance partners Nissan Motor and Mitsubishi Motor regarding the establishment of a new Alliance body in order to enhance and ensure further collaboration", Renault stated. Shareholders' approval is needed to remove him from the board.

Ghosn's November arrest and dismissal as Nissan chairman, following an internal investigation, inflamed tensions with 43.4 per cent-owner Renault that have begun to ease since his forced resignation from the French vehicle maker in January.

The start includes leaving Renault's chairman, in this case, Senard, in charge of the alliance, but not chairman of Nissan.

The notice, signed by Nissan President Hiroto Saikawa, will be sent out Thursday, Nissan Motor Co. said.

The notice from Nissan says its investigation also found Ghosn used company money for personal expenses. In Japan, preparations can take months.

It was a lengthy legal battle after which Ghosn will be released on Wednesday for a bail amount of 1 billion Yens, which amounts to around $9 million.

Ghosn, who spent 108 days incarcerated at the Tokyo Detention House since his arrest in November, has resolutely maintained his innocence and on Monday requested to be allowed to attend Nissan's board meeting scheduled for Tuesday.

"The proposed arrangement will have no impact on the existence of the (alliance agreement) and the cross-shareholding structure, which will both remain in place", Renault said. The court apparently saw his coming in contact with other Nissan officials as a risk.

Mr Ghosn also handpicked former Nissan executives Mitsuhiko Yamashita and Vincent Cobee to help him rebuild Mitsubishi after its fuel-efficiency scandal.

If his request to attend the board meeting had been approved, he would have been expected to dial into the meeting via teleconference, given the conditions of his bail, according to a person familiar with Nissan's thinking.

Also on the shareholders' agenda is the dismissal of Greg Kelly, a director who was arrested with Ghosn and accused of working with Ghosn in the alleged misconduct. Renault holds a 43.4 percent stake in Nissan which owns a 15 percent stake in its French peer.

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