business

France plans Renault CEO search as board members disagree over Ghosn

35 Comments
By Laurence Frost

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I do not see Renault cars in Japan. Do they produce good cars? If Nissan produce better cars and Renault only move profits of Nissan to France, I am not surprised Nissan opposes to the take-over by Renault.

-2 ( +11 / -13 )

How much does anyone want to bet that IF Renault removes Ghosen as CEO, he will "suddenly" find himself out of detention and on bail.

1 ( +4 / -3 )

Cherie Blair- articulate, pro-active, reality based.

Renault should be so lucky to have her on board.

-9 ( +3 / -12 )

Nissan has said its whistleblower investigation also uncovered personal use of company funds and other misconduct, .....

Ghosn will not come out of this with clean hands.

-4 ( +3 / -7 )

I do not see Renault cars in Japan. Do they produce good cars? If Nissan produce better cars and Renault only move profits of Nissan to France, I am not surprised Nissan opposes to the take-over by Renault.

I see Renault cars in Tokyo every once in a while. They're out there, just not super common. Can't comment on their quality but I used to see a lot of them when I was living in Korea. That and every Samsung car in Korea was actually a Renault.

3 ( +4 / -1 )

Does Cherie Blair have ANY credentials in corporate governance or the automobile industry?

6 ( +8 / -2 )

mu-da, she has much more experiences than just corporate governance. She controls Blair.

-4 ( +1 / -5 )

That and every Samsung car in Korea was actually a Renault.

Err, that must be news to the Samsung company.

-4 ( +1 / -5 )

Ghosn and an alleged accomplice, Nissan director Greg Kelly, remain in custody and have had limited opportunity to respond to the allegations or defend themselves, particularly in public.

And Japan refers to itself as a country that respects human rights. HA!

1 ( +7 / -6 )

Cherie Blair is a corporate lawyer if I recall correctly (from the time when her husband was regularly in the news as PM), so she should at least know how discussions with this matter should be conducted. As to Renault cars, they don't sell well in Australia, nor do French cars generally, and Nissans are far more popular, though if they keep on putting CVT's instead of proper automatic gearboxes in their vehicles, I'm not sure that will continue to be the case, especially with Toyota putting an 8-speed auto gearbox in their updated RAV4.

2 ( +3 / -1 )

Does Cherie Blair have ANY credentials in corporate governance or the automobile industry?

It's not what you know, it's who you know:

https://www.jacobinmag.com/2017/09/the-ghoulish-post-politics-career-of-tony-blair

3 ( +3 / -0 )

Saikawa was getting comfortable in his salaryman job for life mentality. Time to ship out soon off your leather chair

3 ( +4 / -1 )

@Schopenhauer

I am not surprised Nissan opposes to the take-over by Renault.

There is nothing Japanese can do. Renault owns 46% of Nissan, and this happened due to Japanese mismanagement of Nissan.

@StevieJ

Can't comment on their quality but I used to see a lot of them when I was living in Korea. That and every Samsung car in Korea was actually a Renault.

Those "Samsung" cars are indeed Renaults. 

Long story short, there was something called Samsung Motors in the 1990s, just like Hyundai Electronics. Then the 1998 Asian Financial Crisis hit Korea. Kia went bankrupt and Samsung Motors were struggling. President Kim Dae Jung issued an ultimatum to Chairman Lee of Samsung; either takeover bankrupt Kia and continue auto business, or Samsung must fold Samsung Motors in a grand national industrial restructuring scheme. Ultimately, Hyundai picked up Kia, and Samsung decided to sell the Samsung Motors to Renault to comply with the presidential restructuring demands. This freed up tens of billions of dollars in investment planned on Samsung Motors that went to Samsung Electronics instead and the rest is history.

As for Samsung Motors, Renault bought it but licenses Samsung brand for a 1% royalty on revenue because Samsung brand is far stronger than Renault brand. But Renault plans to eventually switch to Renault brand in Korea and ditch Samsung brand.

3 ( +4 / -1 )

I am sure that Japanese netizens are all united in that this whole melee is all Ghons’s/Renault’s fault, that Nissan makes better cars than Renault (which, apart from F1 could be true, I don’t know) and that Nissan’s profits are being syphoned off to France. A while ago there was one of those toe curling moments on tv where some equally cluelessness (feigning) reporters went all the way to Paris and to their “astonishment” they saw many Renault made cars and even a Renault dealership! They counted more Renault cars than Nissans and from their demeanor it was like a crime was being committed. In case they were really that ignorant, they could have saved time and money by googling the facts, for locally made cars also sell well locally. In the top 10 of best selling cars in Japan, the first 9 are Japanese brands. Mercedes is the best of the rest at nr 10. In France it’s not different, the top selling brands are French made cars.

2 ( +4 / -2 )

There is nothing Japanese can do. Renault owns 46% of Nissan, and this happened due to Japanese mismanagement of Nissan.

There is a lot the Japanese can do, Renault owns 43%. Nissan could employ various techniques to make the proposed merger a bad deal for Renault. Ever heard of poison pills with regards to investment? Or, they could put a limit on the amount of shares owned by Renault. https://www.biryuklaw.com/hostile-takeover-defenses/

-3 ( +1 / -4 )

There is nothing Japanese can do. Renault owns 46% of Nissan, and this happened due to Japanese mismanagement of Nissan.

The usual trick would be for Nissan to issue a huge amount of new shares, diluting Renault's holding (and shafting all other existing shareholders too).

0 ( +1 / -1 )

Ghosn and Kelly have no way to defend themselves. Nissan looks like they've been planning this for a while and the weeks of incarceration caused Renault to wait no more. Doesn't even matter now what happens to Ghosn. The detention did its job and a new CEO cometh. Stupid wife just walked into the play so that was a stroke of luck.

The scale of the businesses to stay on course for more EVs however will be threatened by Nationalistic Nissan. That will likely ruin their 3 way supply chain and cause their readiness for growth in their EVs to miss the EV market shift in 2023, breaking up their alliance.

Nissan's financial performance was dropping with Saikawa. It was reported in WSJ and Europe that Ghosn had been planning on firing Saikawa but it looks like he acted first https://europe.autonews.com/automakers/ghosn-planned-remove-saikawa-nissan-ceo-arrest-japan-sources-say

The ol' boys will be happy their tactics worked and they will get to tank Nissan again

3 ( +7 / -4 )

You can not 'dillute' shares and get back to being the original majority, business is business, learn more about business and capitalism please not wishful thinking..

You buy, you own, fundamentals to business 101..

Sony purchased Columbia Tristar pictures can they sell it back to the Americans? or give it back to them on a silver platter? of course not.. what is purchased is rightfully and legally that of the majority shareholder..

In my opinion Renault will bring in someone who ill fire the whole board at Nissan, they are quiet for now, but it is common logic, poke a cat several times, it will come and attack you eventually as the old saying goes.

1 ( +3 / -2 )

sf2k: Stupid wife just walked into the play so that was a stroke of luck.

WHOSE wife are you referring to?

And what does that have to do with anything!

0 ( +1 / -1 )

In my opinion Renault will bring in someone who ill fire the whole board at Nissan

And Renault has a valid reason to do so: Nissan was indicted.

1 ( +3 / -2 )

Kenji Fukimori: Renault will bring in someone who will fire the whole board at Nissan

The thing though is, Nissan / Renault/ Mitsubishi are an Alliance. An Alliance is not the same as an Acquisition or Merger.

Alliances , are negotiable and easier to walk away from.

And they are supposed to be, not only theoretically but in practice - co-operative.

The Nissan Board has already suggested it will add 3 new "independent" members to its existing number.

1 ( +3 / -2 )

An Alliance is another term for an intergrated company of more than one company, as Mitsubishi came into the the 'alliance' as shares and capital was exchanged for a stake in that company too. Hence why a main stronger formaiton of one company and multiple brands that Saikawa and his goons are trying to destroy..

0 ( +2 / -2 )

@ Kenji.

Saikawa and his goons are clowns.

But their obvious incompetence aside, moving from an Alliance to a Merger is a quantum leap .

It means all 3 will become ONE company.

Now they are still 3 separate entities, co-operating at various R&D, production, etc levels.

2 ( +3 / -1 )

I hope it becomes a full intergrated merger, it will become like GM, selling multiple brands under a massive company. As I mentioned in the past, salaries would increase, stronger supply chain, more capital, more investment and more vision of what Carlos brought in, he brought in electric cars, self driving cars, the GTR and many other things that made Nissan very strong and which they now take all for granted.

Have people become blind to not notice the strong future that would lie ahead. Do you think Saikawa and his kamikaze bound team will do anything, sure they would just drag their feet and keep pumping out the same models that Carlos made from scratch.

Similar to what Tim Cook is doing in Apple, peddling the same crap phones, nothing 'new' really aside from upgrades to the processors etc, even the Iwatch was planned whilst Jobs was still alive..

Though judging Nissans share price, it will be a third bankrupt soon, Banzai!

1 ( +3 / -2 )

Supply chain is pretty much the same, same metals, materials, nothing is made from diamonds in cars is it? not even lamborghinis are made from diamonds...

Supply chain/materials: Metal, glass, plastics/PVC, tyres, other rare materials, computer parts

Robots and humans merge them all together= car

Salesmen sell the products at dealerships. Car industry in a nutshell

0 ( +1 / -1 )

Kenji

GM is an American multinational company.

It is not a Merger between 2 foreign auto makers

So you are comparing apples and potatoes.

If the Renault/ Nissan/ Mitsubishi ALLIANCE dissolves maybe the same thing will happen with Nissan & Renault (respectively) as with GM in 2009 when it emerged from the brink of bankruptcy via government backed Chapter 11 reorganization

2 ( +2 / -0 )

GM is an example.. IF the full intergration occurs between Nissan, Renault and Mitsubishi, a new or one of the companies registered name is the main holdings company selling the 3 brands under that Holdings/umbrella company

0 ( +1 / -1 )

The usual trick would be for Nissan to issue a huge amount of new shares, diluting Renault's holding (and shafting all other existing shareholders too).

Or Nissan to buy 10% Renault shares from 15% to 25% to cancel Renault's voting right.

-2 ( +0 / -2 )

Now they are still 3 separate entities, co-operating at various R&D, production, etc levels.

Their processes are now so tightly integrated together that they are operating as if they are one company even if the shlubs at Nissan don't realize it

0 ( +1 / -1 )

Or Nissan to buy 10% Renault shares from 15% to 25% to cancel Renault's voting right.

Lol! That's not happening.

1 ( +2 / -1 )

O.K.but Carlos as a human being have done the best for 3 auto companies. Morally, It was Renault & Nissan & .............that was supposed to guide him. Now, 2 parties, Nissan & Mitsubishi are Japanese, these 2 must know the Japanese laws better that Renault or Carlos or Kerry. I suggest to stop destroying a 64 years old man that have done , What he can ,to save 3 joint ventures. The fact is, I have not seen another person like Carlos, that have such good balance. He can handle the French Government, the Japanese Government & the 3 auto companies. He made Nissan , rules in English, a common International language, He lead the world to pay attention to Nissan. He not only did job but he saved Nissan. Pls remember that he is not Japanese. Ego & vanity of one Japanese in Nissan destroyed everything for everybody. All good Japanese can u forgive that kind of bad low back-stabbing actions???.

3 ( +4 / -1 )

sf2k they are operating as if they are one company even if the shlubs at Nissan don't realize it

The "shlubs at Nissan" DO realizeit.

Why do you think they are fighting for their life?

-1 ( +0 / -1 )

Kenji GM is an example.. IF the full intergration occurs between Nissan, Renault and Mitsubishi, a new or one of the companies registered name is the main holdings company selling the 3 brands under that Holdings/umbrella company

Daimler-Benz / Chrysler is a more apt example than GM.

It is also a good example of a merger gone sour.

Daimler-Benz/Chrysler demonstrates that mergers are not necessarily beneficial moves .

The end result is less than stellar for optimum success.

Daimler Benz is excellent example of corporate culture clash ( which was beginning to show with Renault- Nissan)

-1 ( +0 / -1 )

Kenji Supply chain/materials: Metal, glass, plastics/PVC, tyres, other rare materials, computer parts

Robots and humans merge them all together= car

Salesmen sell the products at dealerships. Car industry in a nutshell

Although you are correct about the supply chains, you forget the impact of QUALITY CONTROL, first introduced by Toyota, @ 1965

To this day Toyota remains one of the top 10 corporations in the world according to FORTUNE 500

-1 ( +0 / -1 )

You can not 'dillute' shares and get back to being the original majority, business is business, learn more about business and capitalism please not wishful thinking..

I suggest you read about stock dilution. It's a common ruse to avoid a hostile takeover.

1 ( +1 / -0 )

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