Renault-Nissan-Mitsubishi Alliance To Be Headed By A General Secretary

The alliance between the French car maker Renault and the Japanese auto companies Nissan and Mitsubishi is being attempted to be revived to its former glory by the companies with the appointment of a general secretary to take exclusive care of the partnership – the largest in terms of production capacity in the global auto industry. The alliance had come under severe pressure – particularly between Renault and Nissan after the arrest and ouster of the former boss of the alliance Carlos Ghosn.

The alliance, which was forced by Ghosn, is being attempted to be resurrected by Renault through repairmen of its relations with the Japanese partners after it was jolted by the arrest of Ghosn arrest in Tokyo last November over charges of financial misconduct. The charges have been denied by Ghosn.

The plans and strategies of the alliance to implement industrial projects together and devise cost savings mode which has become very critical in the current global auto industry amid slowing sale, had been disrupted by the arrest of Ghosn. Both Renault and Nissan had made significant changes to their top management in order to bring in stability to their business.

“This alliance executive will be key for coordinating and facilitating several major alliance projects that are to be launched to accelerate business efficiencies for the respective companies,” the groups said in a joint statement.

Reports quoting sources said that the alliance has already appointed the future general secretary and the sources described the individual to be francophone. The reporting norm for the new head of the alliance has also been changed from the earlier norm at the time of Ghosn as the new head will now report to the Alliance Operating Board and the group CEOs.

The alliance had set up the new Alliance Operating Board in April and is a critical element of the rehashed corporate governance structure at the alliance.  Jean-Dominique Senard, the Renault and alliance president is behind this new set up. Senard was appointed in Renault in January.

The monthly meetings of the Alliance Operating Board are held alternatively every month in France and Japan.

One of the alliance board’s key targets will be a future common platform for electric vehicles, said the reports quoting sources at Renault.

Reports also said that a new chief executive is being sought by Renault to replace the company’s financial chief Clotilde Delbos who had been appointed to the post on a temporary basis.

(Adapted from Reutrers.com)

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