Renault Chairman Vows to Fix “Damaged” Nissan Alliance

Renault SA Chairman Jean-Dominique Senard tells shareholders that his top priority is to restore relations between the French carmaker and alliance partner Nissan Motor Co.

Senard concedes that the repercussions of Carlos Ghosn’s ouster as chairman of both companies caused more damage to their 20-year-old alliance than originally thought, Bloomberg News reports. Now, he says, both companies must overcome their suspicions about the other and launch a “new beginning” for their partnership.

One sticking point is whether Nissan will agree to Renault’s demand to have two seats rather than one on the trio of board committees Nissan proposes to set up to oversee audits, executive compensation and top management appointments. Ghosn, who exercised considerable control over all three of those areas, awaits trial in Japan for financial wrongdoing.

Senard notes that Nissan, with a 15% nonvoting stake in Renault, has two seats on the French company’s board. He insists that Renault, with a 43% voting stake in Nissan, deserves the same board seat arrangement with Nissan.

He also told Renault shareholders yesterday that he was crestfallen that a proposed merger between the French company and Fiat Chrysler Automobiles NV collapsed. He said Renault was “captivated” by the deal, which he described as “remarkable and exceptional.”

Senard again blamed meddling by the French government, which holds a 15% Renault stake with double voting rights. French President Emmanuel Macron has turned down Senard’s request to discuss the issue, sources tell Reuters. But Finance Minister Bruno Le Maire says he will meet with Senard today.