France fears for Renaults influence: Why Ghosn turbo disassembly becomes a political issue

Die Verhaftung und Absetzung von Carlos Ghosn sorgt bei Frankreichs Politikern für Aufruhr

REUTERS

The arrest and dismissal of Carlos Ghosn causes a stir among French politicians

Nissan had already announced it two days ago, now Carlos Ghosn is finally rid of his high-ranking job with the Japanese automaker: Nissan’s inspectors have now decided unanimouslyTo remove Ghosn from his position as Chairman of the Nissan Board of Directors.

The 64-year-old Ghosn was due earlier this week because of the Allegation of violation of stock exchange requirements been arrested. Nissan Show stock market chart separates it from the manager who led the company for almost two decades and through the alliance with France’s carmaker Renault Show stock market chart made one of the world’s largest automakers. The 19-year-old alliance of Nissan and Renault, which was expanded in 2016 with the Japanese carmaker Mitsubishi, has been forged and pushed by Ghosn.

The Renault board members have indeed promised support to Ghosn, but promised him of his Suspended as Chief Executive Officer, Ghosn’s right-hand man at Renault, Thierry Bolloré, takes over the presidency in the meantime. Even with Mitsubishi, where Ghosn previously headed the Board, his dismissal is imminent. Ghosn stays initially in custody in Tokyo,

But in the case of Ghosn it’s not just about possible personal mistakes of a car manager. His arrest and rapid disassembly in Japan jeopardizes the collaboration between the French and Japanese automakers. The alliance threatens to break up, fear investors – and that would be particularly harsh for France.

France’s politics fear for the existence of the alliance

Officially, both sides want to stick to the alliance. A Nissan press release said today that the Board of Directors is committed to the alliance with Renault, which is substantially driven by Ghosn. The French government also repeatedly emphasized that it would continue to support the Alliance. But the nervousness on the part of the French is increasing. Because in the afternoon, French Economics Minister Le Maire receives his Japanese counterpart Seko in Paris – because of the fall of Ghosn.

A few hours before the meeting, French opposition politician Laurent Wauquiez warned quite clearly against the destabilization of domestic manufacturer Renault. “We must be very vigilant”, demanded the party leader of the conservative republicans in the transmitter Radio Classique.

“My fear is that behind the Ghosn affair was the intent to destabilize the Japanese (…) of the Renault-Nissan group – to blow it up or weaken Renault inside the compound,” said Wauquiez. Another industrial debacle in France must be prevented. Renault employs around 47,000 people in France alone, according to government figures.

With his view of a possible internal palace revolt at Nissan, the politician is by no means alone. Even the British “Economist” is critical. In Japan, executive salaries are significantly lower than in Western Europe or the US, according to the business magazine. It is quite common in Japan, however, that the lower pay compared to the West by company fringe benefits are compensated, which are then usually not reported to the authorities.

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