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| Carlos Ghosn Offers to Leave Renault as It Tries to Heal Rift With Nissan | |
| (about 2 hours later) | |
| PARIS — After standing by Carlos Ghosn since his arrest in Japan two months ago, the French automaker Renault is preparing to replace its longtime leader on Thursday, turning its focus to securing the future of the world’s biggest auto alliance. | PARIS — After standing by Carlos Ghosn since his arrest in Japan two months ago, the French automaker Renault is preparing to replace its longtime leader on Thursday, turning its focus to securing the future of the world’s biggest auto alliance. |
| Mr. Ghosn has offered to resign as chief executive and chairman of Renault, and the company is calculating his pension and other compensation to which he is entitled, according to a person with knowledge of the situation who spoke on the condition of anonymity because he was not authorized to discuss it publicly. The preference at Renault was for Mr. Ghosn to step down, rather than be removed, to eliminate any legal uncertainty over his role. He would remain a member of the board until a meeting of general shareholders in June. | |
| The push for a leadership change comes after the French government, the largest shareholder in Renault, turned up pressure on the company to cut ties with Mr. Ghosn in order to focus on strengthening its alliance with the Japanese automakers Nissan and Mitsubishi. The partnership has employees around the world, and Renault, with over 47,000 workers, is one of France’s biggest employers. Bruno Le Maire, France’s finance minister, said last week that preserving jobs was a “priority.” | The push for a leadership change comes after the French government, the largest shareholder in Renault, turned up pressure on the company to cut ties with Mr. Ghosn in order to focus on strengthening its alliance with the Japanese automakers Nissan and Mitsubishi. The partnership has employees around the world, and Renault, with over 47,000 workers, is one of France’s biggest employers. Bruno Le Maire, France’s finance minister, said last week that preserving jobs was a “priority.” |
| Renault’s nomination committee is expected to recommend Jean-Dominique Senard, chief executive of the French tire maker Michelin, as chairman of the board, the person said, and Thierry Bolloré, Renault’s chief operating officer, as chief executive. Mr. Bolloré has filled in for Mr. Ghosn since he was arrested in November on accusations of financial misconduct at the Japanese automaker Nissan, where he was also chairman. | Renault’s nomination committee is expected to recommend Jean-Dominique Senard, chief executive of the French tire maker Michelin, as chairman of the board, the person said, and Thierry Bolloré, Renault’s chief operating officer, as chief executive. Mr. Bolloré has filled in for Mr. Ghosn since he was arrested in November on accusations of financial misconduct at the Japanese automaker Nissan, where he was also chairman. |
| Renault installed temporary leadership but kept Mr. Ghosn officially at the helm even as Nissan and Mitsubishi Motors fired him as chairman. | Renault installed temporary leadership but kept Mr. Ghosn officially at the helm even as Nissan and Mitsubishi Motors fired him as chairman. |
| “We now must move to a new phase,” Mr. Le Maire said last week. | “We now must move to a new phase,” Mr. Le Maire said last week. |
| After replacing Mr. Ghosn, Renault plans to intensify efforts to repair the acrimonious rift that opened with Nissan, the dominant partner in the alliance, after his arrest. Since then, each company has viewed the other as trying to seize the opportunity to tip the balance of power in its favor. Mr. Ghosn was the dominant personality who held the alliance together, overseeing the operation and performance of the three companies simultaneously. | After replacing Mr. Ghosn, Renault plans to intensify efforts to repair the acrimonious rift that opened with Nissan, the dominant partner in the alliance, after his arrest. Since then, each company has viewed the other as trying to seize the opportunity to tip the balance of power in its favor. Mr. Ghosn was the dominant personality who held the alliance together, overseeing the operation and performance of the three companies simultaneously. |
| Addressing the leadership crisis may fall mainly to Mr. Senard, a veteran industrialist known in France for his no-nonsense management style. He will need to “install a climate of confidence between all the parties,” said Ollivier Lemal, the managing director for France of the management consulting firm EIM. | Addressing the leadership crisis may fall mainly to Mr. Senard, a veteran industrialist known in France for his no-nonsense management style. He will need to “install a climate of confidence between all the parties,” said Ollivier Lemal, the managing director for France of the management consulting firm EIM. |
| “The key issue is not so much the leadership of Renault, but who is going to lead, manage and develop the alliance,” he said. “And for that, you need someone who is going to devote all his time and energy to restore dialogue between the manufacturers.” | “The key issue is not so much the leadership of Renault, but who is going to lead, manage and develop the alliance,” he said. “And for that, you need someone who is going to devote all his time and energy to restore dialogue between the manufacturers.” |
| The replacement of Mr. Ghosn at Renault will be a turning point in the dramatic saga of one of the most powerful executives in the auto industry. Over two decades, he built one of the world’s most successful groups in the sector by reviving Nissan and Renault, an alliance that later expanded to include Mitsubishi Motors. | |
| A Japanese court declined again on Monday to release Mr. Ghosn on bail, making it likely that he will remain in prison for months until his trial. | A Japanese court declined again on Monday to release Mr. Ghosn on bail, making it likely that he will remain in prison for months until his trial. |
| Prosecutors seized Mr. Ghosn aboard his private jet after it landed at a Tokyo airport on Nov. 19. He has since been indicted on multiple charges of hiding more than $80 million in compensation while chairman of Nissan, and of improperly transferring personal losses to Nissan’s books. He has denied all the charges. | Prosecutors seized Mr. Ghosn aboard his private jet after it landed at a Tokyo airport on Nov. 19. He has since been indicted on multiple charges of hiding more than $80 million in compensation while chairman of Nissan, and of improperly transferring personal losses to Nissan’s books. He has denied all the charges. |
| Last week, Mitsubishi Motors also accused Mr. Ghosn of financial wrongdoing, saying he had secretly received compensation of 7.8 million euros, or almost $9 million, from a joint venture of the two automakers. Renault has said an internal review turned up no issues with Mr. Ghosn’s compensation. | Last week, Mitsubishi Motors also accused Mr. Ghosn of financial wrongdoing, saying he had secretly received compensation of 7.8 million euros, or almost $9 million, from a joint venture of the two automakers. Renault has said an internal review turned up no issues with Mr. Ghosn’s compensation. |
| A chief concern of Renault and the French government is that Nissan may seek to even out the companies’ shareholding structure. Renault owns a 43 percent stake in Nissan, while Nissan holds a 15 percent share in Renault that does not carry voting rights, a situation that the Japanese automaker has expressed discomfort with for years. | A chief concern of Renault and the French government is that Nissan may seek to even out the companies’ shareholding structure. Renault owns a 43 percent stake in Nissan, while Nissan holds a 15 percent share in Renault that does not carry voting rights, a situation that the Japanese automaker has expressed discomfort with for years. |
| Last week, Hiroto Saikawa, Nissan’s chief executive, dismissed as “absurd” reports that his company had plotted to oust Mr. Ghosn, and refrained from discussing rebalancing power in the alliance. | Last week, Hiroto Saikawa, Nissan’s chief executive, dismissed as “absurd” reports that his company had plotted to oust Mr. Ghosn, and refrained from discussing rebalancing power in the alliance. |
| At the same time, Mr. Saikawa declined a request by Mr. Bolloré to urgently fill two of the three seats Renault holds on the Nissan board, left empty by the arrests of Mr. Ghosn and Greg Kelly, a top aide to Mr. Ghosn who was indicted on charges of having helped his boss conceal income. | At the same time, Mr. Saikawa declined a request by Mr. Bolloré to urgently fill two of the three seats Renault holds on the Nissan board, left empty by the arrests of Mr. Ghosn and Greg Kelly, a top aide to Mr. Ghosn who was indicted on charges of having helped his boss conceal income. |
| His deferral of the matter until a Nissan board meeting in March fanned concerns in Paris that the Japanese company was maneuvering to prevent Renault from participating in alliance decision-making at a crucial moment. | His deferral of the matter until a Nissan board meeting in March fanned concerns in Paris that the Japanese company was maneuvering to prevent Renault from participating in alliance decision-making at a crucial moment. |
| In an unusual move, French government officials flew to Tokyo to weigh in. Martin Vial, one of two French government representatives on the Renault board, and Emmanuel Moulin, the chief of staff for Mr. Le Maire, the finance minister, met last week with Japanese officials and Nissan stakeholders. | In an unusual move, French government officials flew to Tokyo to weigh in. Martin Vial, one of two French government representatives on the Renault board, and Emmanuel Moulin, the chief of staff for Mr. Le Maire, the finance minister, met last week with Japanese officials and Nissan stakeholders. |
| Soon after the visit, Japanese news outlets reported that France was seeking to compel a merger between Nissan and Renault, prompting a heated denial by Mr. Le Maire. | Soon after the visit, Japanese news outlets reported that France was seeking to compel a merger between Nissan and Renault, prompting a heated denial by Mr. Le Maire. |
| “No shareholding rebalancing or modification of cross shareholdings between Renault and Nissan are on the table,” he said in an interview published on Sunday in the French weekly Le Journal du Dimanche. | “No shareholding rebalancing or modification of cross shareholdings between Renault and Nissan are on the table,” he said in an interview published on Sunday in the French weekly Le Journal du Dimanche. |
| A spokeswoman for the Finance Ministry added that Mr. Ghosn had an explicit mandate from Renault shareholders to “strengthen and consolidate the alliance.” | A spokeswoman for the Finance Ministry added that Mr. Ghosn had an explicit mandate from Renault shareholders to “strengthen and consolidate the alliance.” |
| “Right now, the priority is ensuring the stable and solid governance of the alliance and managing forthcoming changes,” she said. “There will be a dialogue about other issues. This is a step-by-step process.” | “Right now, the priority is ensuring the stable and solid governance of the alliance and managing forthcoming changes,” she said. “There will be a dialogue about other issues. This is a step-by-step process.” |
| Renault has maintained that the No. 1 priority is to smooth strained relations with Mr. Saikawa and Nissan, strengthen the alliance and move past the governance fiasco to focus on the carmakers’ performance at a time when markets worldwide are showing signs of weakness. | Renault has maintained that the No. 1 priority is to smooth strained relations with Mr. Saikawa and Nissan, strengthen the alliance and move past the governance fiasco to focus on the carmakers’ performance at a time when markets worldwide are showing signs of weakness. |
| It is a challenge that Mr. Senard, 66, the longtime leader of Michelin, would take up immediately if he is confirmed as chairman of the Renault board. The son of a diplomat and a meticulous businessman who steers clear of the limelight, he is a striking contrast to Mr. Ghosn, a prominent executive whose success imbued him with a rock-star image. | It is a challenge that Mr. Senard, 66, the longtime leader of Michelin, would take up immediately if he is confirmed as chairman of the Renault board. The son of a diplomat and a meticulous businessman who steers clear of the limelight, he is a striking contrast to Mr. Ghosn, a prominent executive whose success imbued him with a rock-star image. |
| Mr. Senard was scheduled to step down from Michelin in May to make way for a successor there. | Mr. Senard was scheduled to step down from Michelin in May to make way for a successor there. |
| Demand for cars is falling in China, the United States and Europe, the three biggest markets, and the partnership that Renault and Nissan founded in 1999 to share buying power and expertise is essential if they, and Mitsubishi, are to stay competitive, analysts say. To succeed, the companies will have to act quickly to put their differences behind them. | Demand for cars is falling in China, the United States and Europe, the three biggest markets, and the partnership that Renault and Nissan founded in 1999 to share buying power and expertise is essential if they, and Mitsubishi, are to stay competitive, analysts say. To succeed, the companies will have to act quickly to put their differences behind them. |
| In a nod to the importance of scale, Ford Motor and Volkswagen announced plans last week to build their own broad alliance, to speed the development of electric and self-driving cars, possibly adding to competition for the Renault-Nissan-Mitsubishi group. | In a nod to the importance of scale, Ford Motor and Volkswagen announced plans last week to build their own broad alliance, to speed the development of electric and self-driving cars, possibly adding to competition for the Renault-Nissan-Mitsubishi group. |
| Renault still relies on financial contributions from Nissan, the alliance’s dominant performer, and some Renault officials have expressed concern that Nissan’s sales and financial performance are slipping. | Renault still relies on financial contributions from Nissan, the alliance’s dominant performer, and some Renault officials have expressed concern that Nissan’s sales and financial performance are slipping. |