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Nissan seeks end to Renault control in French power struggle

Discussion in 'Cars and Transportation' started by RobStark, Oct 27, 2015.

  1. RobStark

    RobStark Active Member

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    Nissan Motor has drawn up proposals to exit Renault control by purchasing a larger stake in its French parent, sources told Reuters, amid an escalating power struggle between Renault-Nissan alliance boss Carlos Ghosn and the French state, Renault's biggest shareholder.

    In a three-page document passed to the French government, the Japanese carmaker calls for deep changes to the 16-year-old alliance, giving the companies equal weight in joint decisions and "better balanced" cross-shareholdings of 25-35 percent, government and company sources said.


    Renault currently holds 43.4 percent of Nissan and the casting vote in their Dutch-registered Renault-Nissan BV management structure. Nissan in turn owns a non-voting 15 percent of Renault.


    The Nissan demands are a response by 61-year-old Ghosn, CEO of both carmakers, to a surprise April move in which Economy Minister Emmanuel Macron raised France's Renault stake from 15 to 19.7 percent - informing Ghosn in a phone call only hours before the transaction took effect.


    The stand-off marks a new low in Ghosn's relationship with the French government. It also threatens the future of an automotive pairing hailed as a rare success story in an industry whose recent past is littered with failed mergers.


    France's stake increase, described as temporary, allowed the government to force a permanent doubling of its voting rights through the company's shareholder meeting by blocking Ghosn's proposed opt-out from a new law entering force next year.


    A retaliatory plan to hand more power to Nissan - by restoring its voting rights in Renault to counter the government's increased clout - already has the Renault board's support. French state representatives abstained from the April 16 vote and have since contested its legitimacy, sources said.


    But the new Nissan proposals, in a Sept. 3 note initialled by Ghosn's second-in-command Hiroto Saikawa, go much further.



    Under French and Japanese law, the proposed 25-35 percent cross-shareholdings would allow Nissan to vote as Renault's biggest shareholder while depriving the French carmaker of any reciprocal say at Nissan meetings.


    That amounts to a "reversal of the balance of power within the alliance to the detriment of Renault", according to a French government source.


    http://uk.reuters.com/article/2015/10/27/uk-renault-nissan-exclusive-idUKKCN0SL0O120151027



    We may have to rename the Alliance the Nissan-Renault Alliance.
     
  2. muleferg

    muleferg Member

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    Ah So Desu Ka.
     
  3. MileHighMotoring

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    This bums me out. I liked that Nissan was effectively part of Renault, their alliance makes them the 4th largest automaker. And Ghosn is the reason EVs are mainstream because he spearheaded the Leaf and has pushed for it's continued evolution and improvement. I know Nissan isn't making money on the venture yet, but such a big change takes time to create deep roots. I love that Renault is willing to spend the money as an investment in the future of EV.
     
  4. ZBB

    ZBB Emperor

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    This sounds more like a flip-flop of control... Currently Nissan is controlled by Renault. But the French government has means to control Renault. Sounds like the plan is for Nissan to take a bigger stake in Renault, giving Nissan control of both Renault and Nissan, and no longer allowing the French government's minority stake the ability to control.

    Basically Ghosn ensuring control is with the Alliance. Not the French gov't...

    This will be interesting to follow...
     
  5. TEG

    TEG TMC Moderator

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    #5 TEG, Oct 27, 2015
    Last edited: Oct 27, 2015
    In case anyone cares:

    France–Japan relations - Wikipedia, the free encyclopedia

    When I think of Japan & France in the same thought, I think:
    * Large scale nuclear power generation.
    * Historical leaders in high speed rail.
    * Strong sense of maintaining their cultural integrity.
     
  6. RobStark

    RobStark Active Member

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    When I think of French cultural integrity I think government attacking English and witch hunts for any dastardly Anglo-Saxon influence. Somehow the Germans,Italians, Spanish and other Continentals are a bit less dastardly.

    When I think of Japanese cultural integrity I think of Japanese society importing foreign ideas and culture then organically making it Japanese by filtering it through Japanese society. There is even a bit of Anglophilia when it comes to high culture, Francophilia when it comes to gastronomy, and Americaphilia in low culture.
     
  7. renim

    renim Member

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    Renault shareholders like it, it would boost their stock price
    Nissan shareholders like it, it would boost their financing ability
    a better alliance, this would provide lower capital cost to both equals of the alliance, and boost their competitiveness regarding VW

    everyone wins except the French government
    hmmm
     

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