Nissan Motor Co. seeks to review its capital relationship through talks with Renault, which currently has de facto control over Nissan. However, the French government, Renault's largest shareholder, is unlikely to accept the decline of the French carmaker's dominance over Nissan, with Carlos Ghosn, the key link between the companies, being removed from his position as its chairman.
"[We're] Renault's slaves," commented a Nissan employee. Ghosn, who also serves as Renault's chairman, had been making decisions on Nissan's business strategy as well as personnel affairs, together with Greg Kelly. Staff members sent by Renault who came from either the United States or Europe were paid better than Japanese staff, even though they worked on the same projects.
Still, Nissan is not seeking to cut its ties with Renault; it is asking for an "equal relationship." The three car manufacturers in the alliance have strong holds over different markets; Nissan in the United States and China, and Renault in Europe, while Mitsubishi Motors Corp. has been expanding its sales in Southeast Asia. One analyst described the alliance as "an ideal combination that complements each other." Besides, their production and sales systems, as well as parts procurement, have been further integrated. It will be necessary for Nissan to increase its stake in Renault, and have Renault sell its Nissan shares, to achieve their "equal relationship." A senior Nissan official stressed the importance of "fixing the twist to enhance the future of the alliance." "We should study [the structure] closely," the official said.
The French government passed in 2014 the so-called Florange law, which allows those who own shares in a public company for longer than two years to have double-voting rights. As a result, the French government, which holds a 15 percent stake in Renault, increased its influence over the Japanese automaker. They are reportedly looking to merge the two companies in order to maintain local jobs in France.
There is no doubt Nissan's next steps will make the French government uneasy. French Finance Minister Bruno Le Maire held talks with his Japanese counterpart Hiroshige Seko in Paris on Thursday, a meeting the French side requested. Some Japanese government officials speculate their counterpart "will be eager to lead the talks regarding Nissan and Renault."
It is unclear which side will be able to take advantage after the charismatic manager has left. Both companies, with the help of the governments, will continue to try predicting the other's move as they seek to gain the upper hand.
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