Is it possible to maintain unity in the absence of the control tower? Prospects for the world's second-largest automotive alliance can be said to remain murky.
Top executives of Nissan Motor Co., France's Renault SA and Mitsubishi Motors Corp. have held talks and confirmed their stance of maintaining the alliance.
This is the alliance's first top-level meeting since former Nissan Chairman Carlos Ghosn, who was the linchpin of the alliance, was arrested.
The global automobile industry has entered a phase of major changes, and competition has further intensified. There must be no room to break up the three-way alliance. It is commendable that the companies agreed on their commitment to the alliance for the time being.
Ghosn had played the central role in steering the alliance's overall strategy. The three companies also agreed to change this to a system in which their top executives will make decisions together.
Given the situation that led Ghosn to be dismissed as chairman of Nissan and Mitsubishi, this decision is reasonable.
While a "collegial system" allows for careful consensus-building, the decision-making process under the system will be slow. It is crucial for the companies to try to manage it appropriately by taking the advantages and disadvantages of the system into consideration.
At the same time, Nissan must work on restructuring its corporate governance as a top-priority task.
Govts shouldn't meddle
It is concerning that friction between Nissan and Renault has intensified over the management and personnel matters of the auto group.
Renault, which holds a stake of more than 40 percent in Nissan, apparently intends to continue to take the lead in the alliance. The French government, which is Renault's largest shareholder, has backed it.
Meanwhile, Nissan's shareholding in Renault stands at 15 percent, without voting rights. Nissan was increasingly dissatisfied with the dominance of smaller Renault.
Such a twisted capital relationship allowed for power to be concentrated in Ghosn and contributed to his alleged financial malfeasance. Nissan's desire for an equal relationship with the French company is understandable.
However, it is not easy to review the capital tie-up in the short term.
If Nissan increases its stake in Renault to 25 percent or more, Renault's voting rights for Nissan can be suspended under Japan's Companies Law.
If Nissan undertakes such a tough measure, that would sharpen the conflict with its French partner and undermine the strength of the three-way alliance. Renault, for its part, should refrain from excessive interference in Nissan.
It is hoped that the two companies will continue to hold discussions tenaciously and aim for a soft landing.
French President Emmanuel Macron is scheduled to talk with Prime Minister Shinzo Abe on the sidelines of a Group of 20 summit in Argentina.
At the meeting, Macron is expected to seek the maintenance of the status quo of the three-way alliance in which Renault has taken the lead.
Questions have been raised over such a stance, in which efforts to influence an industry partnership in the private sector are made through diplomatic negotiations.
(From The Yomiuri Shimbun, Dec. 1, 2018)
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