Alliance Pledge Renewed By Renault, Nissan And Mitsubishi

While here has been some degree of tension between the two companies after the arrest of former Chairman of Nissan and Mitsubishi – Carlos Ghosn, the two companies along with their third alliance partner Renault have pledged to keep up the alliance that has made them the second largest car maker in the world combined after German car manufacturer Volkswagen.

They had all “emphatically reiterated their strong commitment to the alliance” in the last few days, the carmakers said in a joint statement on Thursday. But the companies did not elaborate neither on the issues nor on the commitment of the companies any further.

“The mood is collaborative,” an alliance executive told Reuters. “People are focused on the business and moving forward.”

Japanese authorities had arrested Ghosn was in Tokyo last week on charges of financial misconduct. Ghosn been alleged to have used company money to meet his personal expenses as well as supplying wrong information about his compensation for years in documents submitted to the Tokyo stock exchange.

Ghosn was removed from the post of chairman post of Mitsubishi on Monday by the board of Mitsubishi through a unanimous vote just days after Ghosn was removed from the same position in Nissan.

Combined, Nissan, Mitsubishi, and Renault operate in over 200 markets and employs over 470,000 employees.

While appointing an acting chief executive to carry on the work of Ghosn, Renault has retained the tainte3d executive and an industry icon in his positions of CEO and chairman of the car maker.

The alliance between the three companies as painstakingly scripted by Ghosn and his ouster was a blow to the successful running of the alliance. The executives of the three companies got together in Amsterdam on Thursday to attend a previously scheduled meeting where they have reportedly discussed about the fallout of the exit of Ghosn .

Ghosn was instrumental in deepening of the relationship between Nissan and Renault in recent years which was joined by Mitsubishi in 2016.

However, there has been some talk about the alliance, which sells one in every nine cars worldwide, was not equally distributed. Only 15 per cent non-voting stake in the French company Renault is with Nissan even though the Japanese company is much bigger in size and sells more vehicles than Renault. On the other hand, 43 per cent of Nissan is held by Renault.

According to some analysts this tendency has created some discord and discontent among executives in Nissan, and there was also some fear that a merger of the two companies would be pushed for by Renault and Ghosn.

“The alliance has achieved unparalleled success in the past two decades. We remain fully committed to the alliance,” Thursday’s statement from the trio added.

(Adapted from Money.CNN.com)

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