France and Nissan-Renault Continue Power Struggle
Back in April, the French government pulled a fast one on car manufacturer Renault by buying up an additional 4.7% of the company’s stock, allowing the government to force a permanent doubling of its voting rights in the company’s decisions. This move potentially spelled government meddling not just in the operations of Renault, but also in the operations of the Nissan-Renault alliance, in which Renault carries most of the power.
Suffice it to say that the response from the company was not positive. Nissan and Nissan-Renault CEO Carlos Ghosn subsequently called for a redrawing of the alliance to give Nissan more power to oppose the French government’s sudden power surge.
Suffice it to say that the response from the government was not positive, either.
On November 25th, French Economy Minister Emmanuel Macron, who was behind the government’s power boost, told France’s lower parliamentary house that the government would not allow changes to the current partnership agreement: “Under no circumstances shall we accept that the balance be revisited,” Macron said.
This comes after France offered to limit its voting rights again, but it seems that this was the last straw for Ghosn, who has remained firm to revisit and amend the alliance.
News Source: Economic Times