Ghosn Agrees to Resign as Renault’s CEO, Chairman

Carlos Ghosn has agreed to resign as chairman and CEO of Renault SA, according to media reports.

Renault plans to hold an emergency board meeting on Jan. 24. The board is expected to appoint outgoing Michelin & Cie. CEO Jean-Dominique Senard, 65, as its chairman. Thierry Bollore, who has been serving as interim CEO since November, is likely to be promoted to fulltime CEO.

Japanese authorities have been holding Ghosn in custody since he was arrested on Nov. 19 for financial wrongdoing at Nissan Motor Co. He was stripped of the chairmanship of that company and its Mitsubishi Motors Corp. affiliate less than a week later.

Reuters says the decision by the Renault board to replace Ghosn came after a Japanese court rejected for the third time Ghosn’s plea to be released on bail. The court ruling earlier today makes it more likely that Ghosn will remain in jail until his trial, which isn’t expected to begin until at least June.

Senard’s first priority will be to stabilize the 20-year-old Renault-Nissan alliance, which MMC joined in 2016. The lopsided partnership provides Renault with a 43% voting stake in Nissan, which holds a 15% nonvoting equity position in Renault.

The French government, which owns 15% of Renault, is pushing to fully integrate the carmakers, perhaps under an umbrella holding company. Nissan, chaffing over its lack of clout in the alliance, has been wary of a full merger.