Left Menu
Development News Edition

Nissan in bid to move from Ghosn saga shook up board, adds Renault's director

Devdiscourse News Desk | Updated: 17-05-2019 16:25 IST | Created: 17-05-2019 12:14 IST
Nissan in bid to move from Ghosn saga shook up board, adds Renault's director
A source close to the matter said Bollore's appointment was a major concession from Nissan towards Renault "given that Nissan's management has very little confidence" in the French executive. Image Credit: Wikipedia

Japanese car giant Nissan shook up its executive board Friday, adding a top director from partner Renault as it battles the fallout from the Carlos Ghosn saga and disappointing results. The firm will propose to shareholders a new board structure with 11 members, six of whom will be external, as Nissan attempts to improve corporate governance in the wake of former chairman Ghosn's arrest for alleged financial misconduct.

"With the lessons from the recent executive misconduct still fresh, Nissan resolves to rigorously pursue the separation of supervisory and executive functions," said the firm. Renault chief executive Thierry Bollore will join his colleague from the French firm, chairman Jean-Dominique Senard on the board, with the two partner firms are at odds on how close their ties should be.

The appointment appears intended to calm tensions between the firms. A source close to the matter said Bollore's appointment was a major concession from Nissan towards Renault "given that Nissan's management has very little confidence" in the French executive.

Bollore stood by Ghosn for a long time after his arrest, sparking anger at Nissan, whose internal investigation brought down its former boss. Another source said Senard "had pushed for this appointment but the Japanese refused at the beginning." Senard has already been sitting on the Nissan board since he was elected to replace Ghosn at an extraordinary shareholders' meeting in April.

"For Renault, it's about having someone on the board, next to Senard, who knows the story, a heavyweight who will share Senard's views," said the second source. Nissan boss Hiroto Saikawa will keep his job despite mounting pressure on him to step down after a set of disastrous results, with net profits expected to plunge to a decade-low in the coming year.

Several shareholders have called for Saikawa to be sacked before his term comes up for renewal in June but the former Ghosn protege has insisted he wants to stay on and guide the reforms he hopes will return Nissan to profitability. The firm has been crippled by the reputational damage caused by the legal woes of former chairman Ghosn, who faces four formal charges of financial misconduct. He denies any wrongdoing.

But analysts point to several problems for Nissan beyond Ghosn, including apparently declining relations with its French partner Renault and a dearth of new products. "At this time of radical transformation in the automotive industry, Nissan urgently needs to establish a highly effective governance structure to enhance business capabilities and achieve sustainable corporate value," the company said in its statement.

Saikawa has brushed off calls for his resignation, saying he wanted to launch a fresh start for the firm and would discuss the timing of his stepping down "at the appropriate time." Nissan, Renault and Mitsubishi Motors make up an unusual three-way alliance that has grown to become the top-selling car group. Ghosn was the driving force between bringing the firms together and has since alleged that Nissan launched an investigation into him over fears he was hoping to merge the Japanese and French companies.

Saikawa has admitted "differences of opinion" with Senard on the future make-up of the alliance, including the capital partnership between the two companies. Renault is pushing towards a merger of the two firms but Nissan executives are more sceptical.


TRENDING

OPINION / BLOG / INTERVIEW

Migration post-COVID 19: Taking cues from the past to rebuild economies

Migrants are an irreplaceable part of even the essential workforce of developed countries and are on the frontline in the fight against the crisis, making an immeasurable contribution to saving the lives of natives with voting rights....

Socialization Post-COVID-19: Local associations and online groups to play crucial role

Though every age group is suffering due to the global lockdown caused by the ensuing COVID-19 pandemic, the challenges before adolescents are unique. Their social space has shrunk drastically, besides, they have become highly vulnerable to ...

Pharma post-COVID 19: Reducing political clout can alter business models

Powerful governments that have historically supported the pharma industry in enforcing global intellectual property rules are changing course and introducing legislation that can override normal patent rights during emergencies....

COVID 19 response: Big data is of big help but concerns remain unanswered

Public monitoring tools developed to fight the pandemic could pave the way to more invasive forms of mass surveillance post COVID-19....

Videos

Latest News

Russian fighters flown out of western Libya after Haftar retreat

Russian fighters in Libya were flowed out a town south of Tripoli by their Libyan allies after retreating from frontlines at the capital, the towns mayor said. The reported departure of the Russians is another blow to the Libya National Arm...

Esports-Russell enjoys runaway success in F1's virtual Monaco GP

George Russell took a runaway win for Williams in Formula Ones virtual Monaco Grand Prix on Sunday, the day the cancelled showcase race should have taken place in real life.Mercedes reserve Esteban Gutierrez finished 39 seconds behind with ...

OG's Topson to return for ESL One Birmingham 2020 Online

OG are welcoming Topias Miikka Topson Taavitsainen back to their lineup for the ESL One Birmingham 2020 Online Europe CIS event. The return of the 22-year-old native of Finland marks the first time that OG will have a full lineup since Feb...

Jacinda Ardern stays cool as earthquake rattles New Zealand capital

An earthquake struck near New Zealands capital on Monday morning, shaking many residents including Prime Minister Jacinda Ardern who continued with a live TV interview at the parliament building.The 5.8 magnitude earthquake was 37 km deep a...

Give Feedback