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French gov't presses Japan to accept Renault-Nissan merger

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Mitsubishi; what a powerful Name hereabouts. Now the French govt owns a stake?

Oh Gosn what have you done.

-1 ( +6 / -7 )

This just keeps getting more interesting. Abe I’m on this now? Saikawa must be stressing out big time.

6 ( +9 / -3 )

I am sure that this suggestion has gone down like a lead balloon in Japan.

10 ( +12 / -2 )

Best for Japan and Nissan to reject pressure from Emmanuel Macron and his French government cronies. Macron's approval rating in France is currently below 30%.

Additionally, Renault's poor reputation for quality would further damage Nissan's reputation.

What is Renault best known for in North America? Probably the abysmally awful Renault "Fuego": a fragile, front-drive coupe that rusted quickly into dust or burst into flames amid random electrical fires. It was recalled for steering wheels that came off in drivers' hands.

https://www.edmunds.com/car-reviews/features/100-worst-cars-of-all-time.html

-3 ( +13 / -16 )

This is getting interesting, the other day the French government was pushing Renault to move on from Ghosen and find a new CEO and now it's following with this.

2 ( +6 / -4 )

Time for Japan to stop "relying" on foreign collaboration which only jeopardizes Japan and its citizens.

-10 ( +11 / -21 )

sorry fellow, Kazetsu.., this is a small world of ours.

7 ( +9 / -2 )

Interesting... do you know why people need to rely on others - because they have no choice, don't have the skills/ability, or have a need.

6 ( +10 / -4 )

Renault-Nissan is such a long name... Why not just go with Renault-san?  :)

3 ( +10 / -7 )

LIsten, JP companies are only allowed to buy foreign companies and merge them into the Japanese parent... I am very very interested to see how this plays out. Renault only needs a few more percentage of shareholders to get approval from Nissan for this IF the price is right.

2 ( +6 / -4 )

So what I can imagine is that Renault buys out the remaining 55% that it does not own at a premium, and Nissan becomes a wholly owned subsidiary of Renault and is no longer a listed company. Saikawa would surely be pleased.

-2 ( +1 / -3 )

It also expressed its intention to pick someone from Renault to succeed Ghosn as chairman of Nissan, according to the sources.

Wow! I dunno how they are gonna feel about this. However, the reality is, if this deal doesn’t go through, Nissan is finished. These stone-headed protectionistic Kapanese businessmen really need to wake up. It was they who ran Nissan into the ground in the first place and if it was not for Ghosn and Renault’s support Nissan would have been history years ago.

2 ( +7 / -5 )

Several comments here have a distinct stench of xenophobia. It does suit very well the long time premeditate deceit of Saikawa, who dares to present himself as a whistleblower while conspicuously benefiting of his information to the authorities. As for the medieval japanese judicial system, it recently found a powerful supporter in France: the CGT, the only communist union labor which survived the cold war era. Banzai!

-1 ( +5 / -6 )

How did the French not get the memo? Ghosn was arrested and taken into custody on spurious charges precisely because the Japanese govt, Keidanren and Nissan couldn't countenance an existential threat of this nature. The loss of a major Japanese brand run by a foreigner to a foreign competitor? The French should tell the Japanese govt to either release Ghosn, or else offer to sell the shares to Hyundai, Kia and Daewoo - or maybe the Chinese.

5 ( +10 / -5 )

Govt and cars, two story’s and two what .....one globe.

0 ( +1 / -1 )

Any car company that puts itself into the hands of a foreign company is potentially putting its future at risk. Look what Ford did to Saab. No, better to keep control and be inventive to keep afloat.

1 ( +5 / -4 )

How did the French not get the memo? Ghosn was arrested and taken into custody on spurious charges precisely because the Japanese govt, Keidanren and Nissan couldn't countenance an existential threat of this nature. The loss of a major Japanese brand run by a foreigner to a foreign competitor? The French should tell the Japanese govt to either release Ghosn, or else offer to sell the shares to Hyundai, Kia and Daewoo - or maybe the Chinese.

I am not sure about that. For many years Mazda was under the wings of Ford.

0 ( +4 / -4 )

I would looove to see someone from renault take over from ghosn and the alliance accepted through pressure from the french government. That means it's back to square one for those xenophobic executives like saikawa and co. Oh boy would i love to see his face when that happens.

2 ( +9 / -7 )

Cars are global phenomena, politicians take keen interest. Public watches.

2 ( +2 / -0 )

Just as I predicted Macron finally is stepping up his game to our government here..

*To preserve its business identity, by cooperating with the Japanese government Nissan will speed up formulating measures to prevent itself from being integrated with Renault, the sources said.

If that doesn't smell like a setup, it's now evident..

3 ( +6 / -3 )

Though not sure why the French aren't visiting Carlos in the detention center.. That's still weak and disgraceful

-4 ( +1 / -5 )

Nissan, which holds a 15 percent stake in Renault -- but without voting rights -- is widely seen as hoping to reduce the influence of the French partner on its management and review the alliance to make it more equitable.

To preserve its business identity, by cooperating with the Japanese government Nissan will speed up formulating measures to prevent itself from being integrated with Renault, the sources said.

And THIS is what is motivating the aggressive moves by Nissan and the state prosecutors against Ghosn!! He may well be guilty of something but THIS is why they are pursuing this so aggressively!!

2 ( +5 / -3 )

HAHA! Poor Saikawa! I have been telling everyone here that it would not stop the inevitable!

At some point, Ghosn will take the reins again, and there will be hell to pay

1 ( +6 / -5 )

Renault is owned by the French government- classic statist socialism. Japan doesn’t need a major company with a foreign nation in control of the means of production operating in their country. What’s next China’s Huawei buying out a major Japanese electronics or telecommunications firm? I seriously doubt Macron will be able to get away with owning a major player in Japan’s car industry. I don’t think Japan is that stupid.

-2 ( +4 / -6 )

Renault is owned by the French government- classic statist socialism.

Did you read the article? Here's the relevant passage:

"The French government is the biggest shareholder in Renault with a more than 15 percent stake,..."

Facts matter. There is nothing "classic statist socialism" about this. Renault is a corporation traded on a stock exchange. Do I really need to go into more detail about this classic capitalist business setup?

3 ( +6 / -3 )

Nissan aren't doing what they're doing to just go and merge with Renault.Otherwise they wouldn't have gone to the trouble to get Ghosn locked up. Lol two times.

0 ( +1 / -1 )

A simple divorce is what is needed here. From a morale standpoint, I don't think any Japanese (in Japan) at Nissan wants to be merged in Renault and the last thing the French government (or Renault) wants to deal with is a renegade subsidiary. Methinks that there is some political theater involved here whereby Japan Inc. is sending a message to all potential future French-Renault-Nissan CEOs 'you could be next...so just let us divorce you.'

Nissan still has enough clout in Japan to get the government's cooperation.

The biggest question I have is this: we all know how frightening the Japanese legal system is (especially for foreigners). My question is this: is the punishment/treatment of Ghosn extraordinarily harsh OR is the treatment par for the course and it's just that he is famous that it's getting so much press attention? My feeling is that it is the latter, not the former.

4 ( +5 / -1 )

I live in USA and we love Nissan. Company stands proudly on it's own. Renault? I don't think they sell them here. I think some here self import on their own.

0 ( +3 / -3 )

A simple divorce is what is needed here

Simple divorces are rare, especially when there's money involved.

is the punishment/treatment of Ghosn extraordinarily harsh OR is the treatment par for the course and it's just that he is famous that it's getting so much press attention?

I think it's not so much the harshness, but that such business behavior is not usually handled in this manner. Scandals within established companies are usually handled more quietly. With "upstart" companies, things can be different (thinking of Livedoor and Horie). So it's easy to think this is more than just a simple matter of monetary cheating within a company. And we wonder if there is whiff of nationalist politics around this.

When was the last time the CEO of a major and well-established Japanese company spent time in jail?

2 ( +3 / -1 )

IMHO they about killed the Mitsubishi brand in USA, watered down Nissan with unreliable French Renault parts.

0 ( +2 / -2 )

The reason Nissan is still alive is because of Renault. Renault invested in Nissan and just recently raking in the benefits. Why would they want to give up Nissan/money? I honestly believe Saikawa et al can’t run Nissan. He needs to go away.

-1 ( +1 / -2 )

"The French should tell the Japanese govt to either release Ghosn, or else offer to sell the shares to Hyundai, Kia and Daewoo - or maybe the Chinese."

Totally WRONG!

You're assuming that's an alliance without two extremely important features of Company Law:

1) Pre-Emption Rights &;

2) Shareholders Agreement

Find out what they are first, then see the absurdity in your original statement.

Especially the bit "or else offer to sell the shares to Hyundai, Kia and Daewoo - or maybe the Chinese."

1 ( +1 / -0 )

Best for Japan and Nissan to reject pressure from Emmanuel Macron and his French government cronies. Macron's approval rating in France is currently below 30%.

Additionally, Renault's poor reputation for quality would further damage Nissan's reputation.

OK, if this overtly pro-Japan, xenophobic, techno-nationalist view of the situation is actually correct, can somebody explain why it is commonly understood that entering into an alliance with Renault 20 years ago in 1999 saved Nissan from certain bankruptcy? It's a rather sad commentary on Nissan that it was rescued by entering into an alliance with a car company that apparently has such a poor reputation. Akin to how Chrysler didn't exactly look good in 2014 when it agreed to a de facto takeover by Italian carmaker Fiat (known among many for being short for "Fix it again Tony").

0 ( +1 / -1 )

Renault is owned by the French government- classic statist socialism. Japan doesn’t need a major company with a foreign nation in control of the means of production operating in their country. What’s next China’s Huawei buying out a major Japanese electronics or telecommunications firm? I seriously doubt Macron will be able to get away with owning a major player in Japan’s car industry. I don’t think Japan is that stupid.

Cripes, I suppose you didnt know that the Japanese government is the largest shareholder in NTT, KDD, JR, Yucho, and others, all of which used to be owned by the government, until they "privatized" them"!

0 ( +1 / -1 )

At first I thought that replacing Ghosn was showing that they're starting to play into Nissan's hands, but now I realize it's the opposite. With this trial scheduled to not even start for half a month they'll just get a new CEO and immediately start plans to further the merger and just get rid of the Japanese management that way. If anything this nonsense has showed them what the Japanese side is capable of and they'll probably be a lot more careful as to not give them any ammo. Nissan is running out of options and soon what happens to Ghosn won't matter at all and he will no longer be useful as a scapegoat, all Nissan keeps saying is "look at the evidence against Ghosn!" When Ghosn is no longer relevant they'll realize that they've been fighting the wrong fight the whole time.

1 ( +2 / -1 )

The merger was suggested by Macron to Ghosn, when Macron was Minister of Economy, in the Hollande government.

So basically, Ghosn carried out the plan for merge under French political orders.

When you see the figures between Renault and Nissan, you easily understand that for Renault and for the French government, Nissan is basically a cash cow. And a very good one !

Of course they don't want to lose a grip on their golden goose !

Ghosn already served his purpose. Too bad he was arrested before completely merging Renalut and Nissan, may think the French gov', but nobody is irreplaceable, and now there is no time looking backwards as they realised Nissan is really not willing to accept their demise through the merger.

That's why, whether Ghosn can be saved or not, French gov' is pressing Japan to accept the merge asap.

-1 ( +0 / -1 )

If a goverment (France) just so happens to be a shareholder of a company (Renault) that has a stake in a company (Nissan), it should be illegal for them to exert their political powers of influence on the foreign company (Nissan) and also the country (Japanese Government). Something very messy, very fishy, and very improper going on here!!!

1 ( +1 / -0 )

The reason Nissan is still alive is because of Renault.

and the reason Renault is still alive now is because of Nissan.

0 ( +1 / -1 )

To preserve its business identity, by cooperating with the Japanese government Nissan will speed up formulating measures to prevent itself from being integrated with Renault,

The first of those measures, having Ghosn arrested, hasn't worked out as planned. What if the new Nissan chairman carries on with the merger? Will he also be arrested on trumped-up charges? He had better conduct meetings by teleconference from Paris, otherwise he will find himself spending months in jail for jaywalking, or whatever.

1 ( +1 / -0 )

Renault should reduce its share in Nissan to 25% instead of merger between Nissan and Renault. The Japanese Government never should accept merger between Nissan and Renault.

0 ( +0 / -0 )

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