Ghosn Rejects French Bid to Ease Renault-Nissan Alliance Tensions

The Renault-Nissan alliance, led by co-CEO Carlos Ghosn, has snubbed a French government overture to soften its influence over the venture, Reuters reports.

The state reiterates a pledge to reduce its stake in Renault, which controls the alliance. But Ghosn appears determined to push for a more equitable balance of control between Renault and Nissan, according to the news service.

Currently Renault holds a controlling 43% stake in Nissan. The Japanese company, which contributes two-thirds of the venture’s sales and a higher proportion of its profits, owns a nonvoting 15% share of Renault.

Ghosn and the Renault board envision a realignment that would give each company 25%-35% ownership in the other, along with voting rights for both. The French government opposes any such move.

Instead, the state has offered to roll back its own stake in Renault from 19.7% to 15%. In April the government used public funds to hike its holding in a successful bid to block Renault’s “one-share, one-vote” policy. Now, under France’s new Florange law, long-term investors—including the government—will gain double voting rights next spring.

Hiroto Saikawa, Nissan’s chief competitive officer, has bluntly criticized the current imbalance, according to Reuters’ sources. He urges the parties to “put this matter behind us as soon as possible so that we can reestablish the foundations of a successful alliance and focus on our real business.”