Amid Strained Relationship, Nissan Hands Renault the Straight Dope on Ghosn
Nissan’s board didn’t wait long to oust Carlos Ghosn as chairman following his Nov. 19 arrest, but alliance partner Renault’s board stood firm, awaiting more information. The waiting continued as Mitsubishi voted to drop Ghosn as chairman.
The disgraced executive, indicted this week by Japanese authorities on charges of underreporting his income by tens of millions of dollars, remains in a Tokyo lockup but still holds the title of Renault CEO. If the French automaker’s board finds the contents of a dossier delivered by Nissan compelling, that status could soon change.
As reported by Automotive News, citing Reuters and Bloomberg, Renault now has in its possession the results of Nissan’s internal investigation. The probe into Ghosn’s financial practices came about by way of a whistleblower. In its wake, Ghosn and board member John Kelly found themselves both ousted from the company and placed in custody by Japanese authorities.
Some board members at Renault felt a coup was afoot and, despite all three alliance members publicly stating their continued commitment to the deep-rooted partnership, suspicions remain. Did Nissan cook up a reason to drop Ghosn as a way of warding off a full merger of the automakers? That’s what some whispering voices claimed. Nissan hopes the dossier, now in possession of Renault, changes things.
For the French automaker, the decision of what to do with Ghosn is fraught with politics. Ghosn holds French citizenship. France holds a 15-percent stake in the automaker, earning it two spots on the company’s board. Meanwhile, Ghosn is credited with saving the automaker from bankruptcy while at the same time forming a profitable partnership with Nissan.
According to media reports, the French government has not yet had an opportunity to look at the Nissan dossier. Before Nissan was able to hand over the evidence, it first had to clear the info transfer with Japanese authorities, which clearly took time.
Renault’s board meets Thursday, and you can bet there’s pressure to see some action come from it.
[Image: Nissan]
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I think this is a both/and, not an either/or situation. Companies and governments often turn a blind eye to questionable behavior on the part of their leadership, as long as they remain useful. The minute (a) their success becomes too great or (b) too little, the knives come out, and the shady stuff comes in very handy at that point. I'm pretty sure Ghosn is guilty as charged, but also that this is only happening now, and in such a publicly decisive and irrevocable fashion for purely political reasons.
Greg Kelly. Not John Kelly.