Ghosn Vows “Irreversible” Renault Links to Nissan, Mitsubishi

Renault CEO Carlos Ghosn promises to make the carmaker’s alliance with Nissan and Mitsubishi “irreversible,” but without merging the companies.

Renault already owns 43% of Nissan, which holds a controlling 34% stake in Mitsubishi. Nissan also owns a nonvoting 15% stake in Renault.

Ghosn says he will present a plan within a few weeks to strengthen the alliance. But he reiterates to analysts that he doubts Nissan will accept changes as long as the French government retains its 15% stake in Renault.

Earlier this week the government declared it won’t sell its shares in the company. Finance Minister Bruno Le Maire told CNews TV today that the government wants to “build a new era of relations” with the company.

France has been an active shareholder, pressuring Renault to make business decisions that shield jobs in France. This week the government also successfully won a 30% pay cut for Ghosn in return for granting him a four-year renewal of his CEO contract and approving the appointment of Thierry Bollore as chief operating officer.

Renault says Ghosn’s new compensation package will give him €2.5 million ($3.1 million) in annual pay and as many as 80,000 long-term shares worth roughly €8 million ($10 million). The plan will be presented to shareholders for approval in June.