Integration with Renault "is not a good idea," Nissan CEO Hiroto Saikawa said on Tuesday. If needed, they would like to consider the structure of joint venture capital with Renault in order to become more stable under harsh competition conditions. The Japanese automotive company takes the view that the current capital structure is unbalanced. Renault holds 43 percent of Nissan, while the Japanese have only 15 percent of the Renault and have no right to vote – although Nissan sold 5.6 million cars last year, about 1.5 times more than Renault.
Renault seeks integration with a Japanese partner. But Nissan wants to focus more on improving his own balance. The group suffers from the scandal of former chief executive Carlos Ghosna, accused of, inter alia, alleged breaches of stock market regulations recently issued with a custody warrant in Japan and currently being prepared for trial.
To restore confidence in Nissan, shareholders have adopted a corporate governance reform plan that includes the establishment of three board members of the supervisory board. At the very last moment, Renault agreed, provided that the CEO of Renaulta Jean Dominique Senard Renault Thierry Bollore was a member of the board. By reforming, Nissan wants to replace the previous steering structure in which Ghosn combined a huge amount of energy. Its goal is to clearly distinguish between executive and group supervisors.
In the future, the board will supervise the candidates for managers, one for payment and another for the work of auditors. Officials outside the Group here need to play an important role. Nissan faces the challenge of improving earnings. In the past fiscal year, the net profit of the Group fell by 57 percent to nine-year low of 319 billion yen (2.6 billion euros).
(APA / DPA)