Nissan grants Renault execs boardroom seats, ending dispute

Reuters

Posted at Jun 21 2019 01:52 PM

FILE PHOTO: Renault Chairman Jean-Dominique Senard attends a Renault, Nissan and Mitsubishi chiefs' joint news conference in Yokohama, Japan, March 12, 2019. Kim Kyung-Hoon, Reuters

TOKYO/PARIS - Japan's Nissan said on Friday it would grant alliance member Renault's representatives seats on key committees of its board, ending a dispute between the 2 automakers.

Nissan said it would give Renault Chief Executive Thierry Bollore a seat on its board's audit committee and Renault Chairman Jean-Dominique Senard a seat on its nomination committee. Senard will also become vice-chairman of the board.

The move comes after demands by Senard for representation on the committees in return for approving Nissan's overhauled governance structure plunged the 2-decade-old partnership into crisis.

"Groupe Renault welcomes Nissan's decision to grant Renault's representatives a seat on the committees of the Nissan board, which will be presented to the general shareholders' meeting on June 25," Renault said in a statement.

"The agreement reached on Renault's presence in Nissan's new governance confirms the spirit of dialogue and mutual respect that exists within the alliance," added Renault, whose merger talks with Fiat-Chrysler broke down this month.

Nissan also said it would nominate Yasushi Kimura, adviser at JXTG Holdings Inc, to chair its board.

The French state has a 15 percent stake in Renault, while Renault itself owns 43.4 percent of Nissan.

French ministers have consistently highlighted the importance of ensuring the Renault-Nissan alliance remains strong, before planning any further consolidation with the likes of Fiat-Chrysler.

The 20-year-old partnership between Renault and Nissan has been strained since former leader Carlos Ghosn was arrested for suspected financial misconduct last year. Ghosn denies wrongdoing.