Economy

Nissan, Renault break up almighty chairmanship in wake of Ghosn's ouster

Nissan, Renault break up almighty chairmanship in wake of Ghosn's ouster

Ghosn, who strenuously denies all charges against him, was said to be "disappointed" not to be able to attend the meeting.

It added that the new board will "drive the operational co-operation between Nissan, Renault and Mitsubishi Motors and look for new ways to generate value for its respective shareholders and employees" and promised to accelerate operational activities "through key focus on deliveries of strategic common projects" that will reported to the board for "quick decision making".

The Tokyo District Court rejected on Monday a request by former Nissan Motor Co.

The new board will consist of four members, including Senard, Nissan CEO Hiroto Saikawa, Renault CEO Thierry Bollore and Mitsubishi Motors Chairman Osamu Masuko.

The group will replace two separate Amsterdam-based alliance entities, Renault-Nissan and Nissan-Mitsubishi, the people said, asking not to be identified because the information has not been made public.

Ghosn was released on a $9 million bail only last week after more than 100 days in detention.

Former Nissan chairman Carlos Ghosn arrives at his residence in Tokyo, after being released from a Japanese prison.

However, the Japanese firm has outperformed Renault recently and many Nissan executives were unhappy with the French company's dominance within the alliance.

His downfall was plotted due to "opposition and anxiety" over the plan to bring Nissan and Renault closer together, Ghosn alleged.

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Although he was nearly immediately fired as the head of the company when the allegations surfaced, he is still a board member until April 8, when an extraordinary meeting of shareholders is likely to remove him.

Nissan holds a 15 percent, non-voting stake in Renault, whose top shareholder is the French government.

Senard declined to comment on the allegations against Ghosn, saying that by principle he considers people innocent until a legal verdict is handed down.

If his request to attend the board meeting had been approved, he would have been expected to dial into the meeting via teleconference, given the conditions of his bail, according to a person familiar with Nissan's thinking.

His subsequent indictment in Japan on three charges of financial misconduct has led to renewed scrutiny of his management and lifestyle at both companies.

The waived bill could amount to the misuse of company resources, as well as tax evasion, if the benefit-in-kind was not declared to French authorities.

In a statement, the Chateau de Versailles said Renault had signed a €2.3-million sponsorship deal with the palace in June 2016.

"He thought it was free", Le Borgne said.