Jean-Dominique Senard would have probably dreamed calmer for his first meeting of Renault, Wednesday, June 12. This will be his first public intervention, less than five months after his appointment by the board of directors to the presidency of the tricolor builder, in the wake of the Ghosn affair. However, the meeting of shareholders of the Diamond – which will also decide on his appointment and his remuneration – comes in a context rather complicated for the French manufacturer. Tread of hot topics.
· The Ghosn affair
Jean-Dominique Senard must first prepare to face questions about the Ghosn affair – or failing that, to pass the word on the subject to Philippe Lagayette, the Losange’s leading director. Accused at the start by the Japanese justice The ex-CEO of Renault and Nissan is now also suspected of using the funds of the two companies for his benefit, as he has not correctly declared his remuneration to the stock market authorities. Not only in Japan: Renault announced last week that it has identified 11 million euros in suspicious expenses incurred by RNBV, their joint subsidiary in the Netherlands, and wants to take legal action. Directors could be held accountable for counter-powers exercised against the former almighty CEO.
· The failed merger with Fiat Chrysler
Just ten days after presenting it, the Agnelli have brutally pulled out last week their proposal of marriage between equals between Renault and Fiat Chrysler Automobiles (of which they hold 30%). The operation had sparked controversy over both his profits for Renault and his financial conditions, but Jean-Dominique Senard was convinced of his strategic interest.
He will undoubtedly be called upon to deliver his vision on the subject, as well as on the reasons for his failure. Fiat Chrysler has questioned the interventionism of the French state (which owns 15% of Renault), but the president of Renault does not he also his part of responsibility, for having underestimated the resistances of its ally Nissan (and also 15% shareholder) and the political dimension of the file?
· Relations with the French State
In his defense, the intentions of the state for Renault are not very clear. The flip-flops of its representatives the board of directors, which formally provoked the failure of the merger with Fiat, plunged everyone into perplexity: Bruno Le Maire assured ten days earlier that he supported the operation.
Jean-Dominique Senard may have felt let down by Bercy, who on his side blames the boss of Losange for hinting that Nissan would support the operation. The relations are more than tense and Jean-Dominique Senard has thought of resigning. The explicit support of the Elysee, in particular, would have dissuaded.
· Alliance with Nissan
This is undoubtedly the most crucial point for the future of Renault. While the Ghosn affair sent a cold breeze between the two partners, Jean-Dominique Senard’s mission was to warm up their relationship. Now, trust seems weaker today than ever. The president of Renault had succeeded in setting up a new governance for the Alliance, hoping that it would start on a new basis. But the Japanese did not appreciate that he started working on a merger project (which they do not want), then warn them at the last minute of his intention to marry Fiat. Last episode in date, a letter from Renault explaining to Nissan that he would not vote, at the meeting of the Japanese manufacturer on June 25, the envisaged governance to date.
For Jean-Dominique Senard it’s a real headache. The challenge is to defend the interests of Renault at Nissan (which he owns 43%), while the agreements made in 2015 removed all power and his Japanese partner brakes four irons. Nobody wants to believe in a divorce, which would be expensive or even suicidal – especially as Nissan’s current results are quite mediocre . But it’s hard to imagine a way out of what looks like a stalemate today.