Renault SA has told alliance partner Nissan Motor Co. it intends to reject the reappointment of Nissan President Hiroto Saikawa if the Japanese automaker turns down its proposed business merger, The Yomiuri Shimbun has learned.
Saikawa, who is also Nissan's chief executive officer, strongly wishes to be reappointed at an upcoming general shareholder meeting, so tensions between Nissan and French automaker Renault over their possible merger will inevitably increase.
Renault holds a 43.4 percent stake in Nissan. If Renault can muster a majority of support at Nissan's shareholder meeting scheduled for June, it would be in a strong position to be able to reject Saikawa's reappointment as a director. Nissan has a 15 percent stake in Renault with no voting rights.
Nissan is prepared to carefully watch Renault's approach and how strongly Renault will continue to push for a business merger in exchange for agreeing to keep Saikawa in his post, according to sources.
Renault proposed a business merger to Nissan in mid-April, but Saikawa was negative toward the offer. There are strong calls within Nissan demanding the capital ties with Renault be reviewed and made more equal.
According to sources, some Nissan officials believe that if Renault keeps forcefully pushing for a merger, "the Nissan-Renault alliance will collapse."
At Nissan, a committee of three outside directors is working on selecting candidates for company directors. According to sources, it has narrowed down this list to about 20 people, including Saikawa.
By contrast, Renault proposed three candidates, including its Chairman Jean-Dominique Senard and its Chief Executive Officer Thierry Bollore.
Senard was selected as a Nissan director at an extraordinary shareholder meeting earlier this month and he is tipped to be appointed vice chairman of the board of directors.
However, Nissan has bristled at the suggestion of Bollore, Renault's top corporate executive, as a new candidate for a board position. This is due to concerns Renault's grip on Nissan's management could become too strong, just as it was when former Chairman Carlos Ghosn, who hailed from Renault, dominated the Japanese automaker's management.
Nissan is considering choosing about 11 new directors. Some observers believe Renault's decision to notify Nissan that it could sink Saikawa's reappointment is aimed at pressuring Nissan to make personnel selections that would be to Renault's advantage.
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