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Chaos from Ghosn's fall ripples beyond Renault-Nissan alliance

Nov 24, 2018 (Nikkei) - The removal of Carlos Ghosn as chairman of Nissan Motor reveals deep tensions inside the Japanese automaker's alliance with Renault and Mitsubishi Motors, as the partners struggle to chart a future without the charismatic leader who held them all together.

The alliance's future hinges on finding a successor who possesses the leadership chops to navigate the trio's sometimes conflicting interests while ensuring continued growth amid paradigm shifts like autonomous cars and electric vehicles.

Nissan's board on Thursday voted to remove Ghosn, who remains held by prosecutors for investigation over allegations of understating his pay in the automaker's financial statements. Ghosn remains Renault's chairman and CEO, at least for now. And as head of Renault, Ghosn had commanded control over the alliance.

Renault apparently wanted to name Ghosn's replacement at Nissan. But the Japanese company sent a letter to Renault before Thursday's board meeting saying such a move would not be permitted, since Ghosn remains a director and the French automaker therefore is not entitled to more representation on Nissan's board, The Wall Street Journal reported.

Nissan initially considered appointing CEO Hiroto Saikawa as interim chairman, but put off the decision Thursday. The company's three outside directors will pick a candidate to succeed Ghosn from the board by December, though it is unlikely that someone from Renault will be chosen.

The three automakers collectively sell more than 10 million vehicles yearly, making their grouping one of the largest globally. But cracks in their alliance are showing elsewhere as well.

The three partners have called off a strategy meeting set for Monday in the Chinese city of Wuhan. Ghosn, Saikawa and other executives were expected to attend. Nissan holds the largest share of any Japanese automaker in China, the world's largest auto market where 28.87 million new vehicles were sold in 2017. But with China's market expected to contract in 2018 for the first time in 28 years, management saw a need for countermeasures.

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