Nissan Motor Co., the Japanese carmaker and an alliance partner of French Renault and Tokyo-based Mitsubishi, had been exploring an option to bequeath some seats of its slated governance board to its French alliance partner Renault SA, a Kyodo report published on Friday (June 14th) had unveiled citing people closer to the subject-matter.
Nonetheless, the latest turn of event on Nissan-Renault alliance emerged after last week, French automaker Renault SA had expressed discontent with the governance reform and asked for at least two seats at Nissan oversight committee.
In point of fact, Renault holds about 43.4 percent stake of Japanese Nissan Motor Corp., while Nissan holds about 15 percent of non-voting stake on the French carmaker. If truth is to be told, the twenty-years-old partnership had been plagued on last November following arrest and dismissal of the former alliance boss, Carlos Ghosn, over charges of financial misconduct, which the French carmaker had contemplated as a boardroom coup and fought till the very end to cushion Ghosn’s position.
None the less, backed by Japanese government, which had a terrible history of dealing with the foreign executives, Nissan filed four separate lawsuits against Ghosn and planned to set off a new governance system to decentralize power.
However, following the French carmaker’s demand for a greater say in the new governance and a warning earlier this week to block Nissan’s adoption of an overhauled governance structure, the Japanese carmaker had agreed to leave some boardroom seats to its alliance partner Renault, Friday’s (June 14th) Kyodo report said citing people familiar with the issue.