How Will Nissan And Renault Move Forward?

The Nissan-Renault alliance has long served as a towering example of successful diplomacy in business. It all started in March of 1999, when the two auto giants joined forces in a unique alliance that has resulted in greater success for both of them. Now that Ghosn has been fired by Nissan and has resigned from Renault amid the scandal over Nissan’s company finances, there is uncertainty in the air.

Ever since Ghosn left the picture, Renault and Nissan have been putting forward an image of unity and well-measured diplomacy. Going forward, there seems to be a perfect opportunity for business to return to normal. That being said, their mutual desire to move forward together may be easier said than done. A joint audit of managerial misconduct is already underway, and Nissan in particular has sweeping corporate governance reforms on the books. The US Securities and Exchange Commission is also investigating Nissan’s reports on Ghosn’s pay. To add fuel to the fire, the French government, Renault’s controlling shareholder, may have different plans for Renault which are unclear at the moment, which isn’t being too well received in Japan. While both companies want to move forward in a mutually beneficial manner, all the cards need to fall on the table first.

For his part, Mr. Ghosn has been pouring some more fuel onto the fire from the Japanese detention center currently housing him. Ghosn commented that he believes Nissan executives have “framed” him by way of “plot and treason” in order to slow Renault’s integration with their Japanese counterpart. After being denied bail, Ghosn is expected to remain in detention until his trial.

Analysts are trying to put forward several possible scenarios going forward, but what will happen still remains to be seen. Nissan CEO Hiroto Saikawa has announced he plans to meet Renault’s new chairman, Jean-Dominique Senard, on Thursday in Amsterdam. For now, a common urge to return to the status quo will likely serve as a  common goal for both of the executives.

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5 years ago
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