Renault’s Carlos Ghosn: Alliance with Nissan, Mitsubishi ‘Irreversible’

Carlos Ghosn, current Chairman and CEO of French car company Renault, renewed his company’s partnership with Nissan Motor Co. and Mitsubishi Motors Corp. is set in stone. Ghosn’s pledge came after he agreed to remain at his position at Renault for the next four years.

The companies are scheduled to implement measures in the next few weeks to ensure the alliance is ‘irreversible,’ Ghosn said in meeting with industry analysts last Friday, February 16, at the company’s Paris headquarters. The announcement of the renewed partnership followed a Renault press release declaring that the company posted record annual revenue and profit. Ghosn also added that in the weeks to come, they will unveil a new effort to boost efficiency at the three companies.

Ghosn’s decision to stay at his post in Renault put to rest weeks of speculation about Renault’s direction and ensured to shareholders that the popular CEO will continue to head the company as it undergoes a potentially disruptive technology transition. The country of France, a top shareholder in the company, had demanded a 30-percent pay cut, succession planning, and a stronger relationship with Nissan, which should stay in place long after Ghosn has left the company.

Thierry Bollore, Renault’s Chief Competitive Officer since 2013, was named as Ghosn’s second-in-command. This enables the chief executive to focus on strengthening its newly forged alliances. Bollore’s promotion puts him in line to succeed Ghosn.

France expressed its support for Ghosn and the alliances, which is quite the 180-degree turn from three years ago, when the two locked horns over how much involvement the state should have in the company. Ghosn, who favored a ‘one share, one vote’ policy, lost a clash withEmmanual Macron who was France’s Economy Minister Emmanuel Macron back then. Macron argued that France and other long-term shareholders should have double voting rights.

Today, Ghosn’s new mandate reflects France’s intended direction for the company. The French state owns a 15-percent stake in Renault.