Carlos Ghosn Resigns As Renault Chairman — Renault Puts Top Priority Towards Securing Alliance

Carlos Ghosn resigns from the post of Chief Executive and Chairman of Renault. France's Financial Minister Bruno Le Maire confirmed in an interview at the World Economic Forum in Switzerland.

Back in November 2018, Carlos Ghosn was accused of financial misconduct at Nissan Motors. Reports stated that Ghosn understated his income by millions of dollars while transferring his personal trade losses onto the company. Ghosn has been in held in a prison in Tokyo, although he does deny all allegations of financial misconduct.

The French Financial Minister stated that Carlos Ghosn has resigned on the late evening of 23rd January. He will be replaced by Jean Dominique Senard as the Chairman while Thierry Bollore will take over the responsibility as the new CEO. Bollore was the interim CEO for the two months, since November.

Carlos Ghosn was detained for two months, along with a senior Director from Nissan. This was after the company conducted an internal investigation uncovered the wrongdoings worth tens of millions of pounds.

Nissan has called for shareholders meet in mid-April. A statement from Nissan, after the uncovering read, "The agenda is to be limited to the discharge of directors Carlos Ghosn and Greg Kelly and the appointment of a new director to be nominated by Renault."

The world's largest automotive alliance between Renault-Nissan-Mitsubishi is said to continue smoothly. Renault owns 43 per cent stake at Nissan, while 15 per cent of the stake in Renault themselves is owned by the the French Government.

Renault had initially stood by Carlos Ghosn and refused to follow Nissan's demand of sacking him. However, the French government also demanded a change in leadership, which lead Carlos resigning from his position. The partnership has over 47,000 employees around the world and the French government stated that securing the alliance and the jobs of their employees is the top priority.

Thoughts On Carlos Ghosn Resignation

Ghosn has been in the position for more than two decades. The alliance between the three companies is the largest in the world, selling 10.6 million vehicles in 2017. His arrest has threatened the future of the alliance between the three companies. Ghosn successors now have to work towards securing the alliance before moving forward.

Source: Sky News