TOKYO (Reuters) – Japan said it is ready to work for the stability of the global alliance Nissan-Renault after the…
TOKYO (Reuters) – Japan said it is ready to work for the stability of the global alliance Nissan-Renault after the amazing arrest of the joint president Carlos Ghosn, but a Nissan executive said that the Japanese automaker seeks ways to weaken the impact by its French partner.
The 19th Alliance, extended in 2016 to include Japan’s Mitsubishi Motors, has been shaken by Monday’s arrest of Ghosn for alleged financial abuse. Ghosn has personally shaped the alliance and had promised to consolidate it with a deeper bond.
“We must return to the original idea of a win-win relationship,” told a long-term Nissan chief of reporters, in terms of anonymity. It should be “a smoother relationship than before”.
A reduction in Renault’s share in Nissan ̵
1; recovering from close bankruptcy after Ghosn took his stunts and has become more profitable than his French partner – should be an option under consideration, said Nissan CEO.
The French automaker currently owns 43.4 percent of Nissan, which in turn holds a 15 percent voting share in Renault and 34 percent of Mitsubishi Motors.
One of the world’s best-known car industry chiefs, Ghosn irradiated the Alliance, who also served as President of Renault and Chairman of Mitsubishi Motors, although his efforts to drive integration were hampered by the French government’s 15 percent in Renault.
On Monday, Nissan CEO Hiroto Saikawa Nissan demonstrated as a victim of Ghosn’s alleged iniquities. However, Nissan himself faces the review of the financial misconduct case, with Asahi newspaper reporting on Wednesday prosecutors weighing a case against the Japanese automaker.
With Ghosn potentially away from the image, the future of the Alliance is subject to intensive investor speculation. Mitsubishi Motors CEO Osamu Masuko said Tuesday it can be difficult to handle without Ghosn’s collective figure.
The Alliance’s success, which helps automakers to develop products and control costs, is crucial for the members at a time when industry is buffered by major consumer consumer tastes and rivals invest billions in new growth areas such as automated and Internet-connected vehicles.
In view of these considerations, the Japanese and French governments have backed the alliance and called for stability as a result of Ghosn’s arrests.
Japan said Wednesday that it was ready to support the alliance. It is “a symbol of French-Japanese industrial success,” says the government spokesman, and calls for a “stable relationship” between the three automakers.
PHIL PHOTO: Carlos Ghosn, President and CEO of the Renault-Nissan-Mitsubishi Alliance, participates in the Tomorrow In Motion event on the threshold of the press day at the Paris Auto Show in Paris on October 1, 2018. Image October 1, 2018. REUTERS / Regis Duvignau
Nissan said Monday that an internal investigation triggered by a whistleblower’s tip had shown Ghosn committed himself to injuries including personal use of company money and under reporting this year how much he earned. It plans to remove him from the post on Thursday.
Ghosn, 64, was arrested by Japanese prosecutors who said he and Representative Director Greg Kelly collaborated to underestimate Ghosn’s replacement at Nissan for five years, which began in the 2010 financial year to be about half of the actual 10 billion yen (88.65 million dollar).
Ghosn and Kelly, who have also been arrested, have not commented on the allegations so far and Reuters has not been able to reach them.
Kyodo News reported Wednesday that Tokyo District Court has decided that Ghosn and Kelly will be held for 10 days.
Japan’s Nikkei operations reported daily that Ghosn had received equity compensation of approximately 4 billion yen over a five-year period to March 2015, but it was not reported in Nissan’s financial statements.
Prosecutors also plan to interview Saikawa on a voluntary basis, NHK reported on Wednesday with remarkable sources.
Prosecutors could not comment immediately. A spokesman from Nissan refused to comment.