Renault, Nissan on pole over governance, tie-up caught in a tangle


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Renault, Nissan on pole over governance, tie-up caught in a tangle

Despite French Government’s intent to deduce its stake on carmaker, Renault SA, latest governance reform of Nissan-Renault alliance had met with a contemptuous chaos, while the alliance future seemed to be worsening, as on Sunday, the 9th of June 2019, Renault executives had signaled that the French carmaker would be blocking its alliance partner Japanese Nissan Motor Co., from going through a planned governance reform unless it could secure a seat on new board, a source familiar with the subject-matter had unveiled on Sunday (June 9th).

Besides the latest development of further worsening of tie-up between Nissan and Renault following the arrest and dismissal of former alliance Chair, Carlos Ghosn over suspicious financial activities, came forth just a few days after the Italian-American carmaker Fiat-Chrysler had stepped off of its planned $35 billion merger deal with Renault what could have made the merger the world’s third largest automaker, behind Germany’s Volkswagen and Japanese Toyota, because of uncertainty on Renault board over Nissan’s reaction regarding the potential merger deal.

While a spokesman for Japan’s Nissan Motor Co. had labelled the latest confusion a potential conflict of interest, the twenty-year-old tie-up appeared to be struggling to break through a deepening streak of strains since the arrest of former Chairman Carlos Ghosn on last November as beforementioned.

The relationship was tested further last week, when Fiat Chrysler had backed off of a potential European merger deal with the French carmaker, currently holding 43.4 percent stakes of Nissan, over disputes of Nissan’s management board.