Renault, Nissan and Mitsubishi Motors are not planning to appoint a new interim chairman to replace Carlos Ghosn as head of their carmaking alliance, following his shock arrest in Japan.
Osamu Masuko, chief executive of Mitsubishi Motors, said on Thursday that the alliance would shift to a system where the group would be led by the heads of the three companies, rather than a single figurehead like Ghosn. Masuko, speaking to reporters in Tokyo, said changes to the alliance’s capital structure were not discussed by company leaders at a meeting in Amsterdam.
A change in the governance structure of the alliance was seen as likely by some analysts. Ghosn, who was the architect of the alliance and chaired the boards of all three manufacturers, was arrested 10 days ago after Nissan alleged he underreported income to regulators.
Tokyo prosecutors are reportedly planning to extend the detention of Ghosn for a further 10 days, after which they must decide whether or not to charge him with a crime, Japan’s Kyodo news agency reported on Thursday.
The arrest has cast doubt on the future of the alliance. Nissan and Mitsubishi quickly moved to oust Ghosn as chair of their respective boards after the claims, but Renault decided not to remove him as chairman and chief executive. He also remains head of the car alliance.
The alliance’s leadership, Ghosn apart, met on Thursday in Amsterdam for an operational review which was scheduled before the arrest. Some executives attended via teleconference.
The meeting was thought to be focused on operational issues of the alliance, which shares research and development, basic components, and some technology. A separate meeting of the board of Renault-Nissan BV, which runs the alliance, would be required to oust Ghosn.
In a joint statement, the three companies said they “have all – individually and collectively – emphatically reiterated their strong commitment to the alliance”.
The statement added: “The alliance has achieved unparalleled success in the past two decades. We remain fully committed to the alliance.”
Car industry analysts have questioned whether Renault can continue to hold the upper hand in the alliance. Renault holds a 43.4% stake in Nissan, which owns 15% of Renault and 34% of Mitsubishi. The alliance sold 10.6m cars in 2017.
Nissan has in recent years been the larger driver of profits for the alliance, and some analysts believe this could be reflected in any restructuring of the unusual cross-ownership. Any change could also give an increased role to Mitsubishi, which currently has no formal role on the board of Renault-Nissan BV.
