See More on Facebook

Analysis, Economics

Nissan to face challenges in setting up new leadership

The company will have to balance its desires with partners Renault.


Written by

Updated: November 26, 2018

After dismissing Carlos Ghosn as representative director and chairman, Nissan Motor Co. is moving toward building a new management structure, a task expected to face challenges as it must take Renault SA’s desires into consideration.

According to sources, Nissan has an agreement with Renault, Nissan’s largest shareholder, that someone from the French company will fill a top executive role at the Japanese automaker.

Leaders from the alliance between Nissan, Renault and Mitsubishi Motors Corp. are scheduled to meet this week to hold discussions.

For Nissan, the immediate focus is to name a successor to Ghosn.

Currently, the company has no chairman after his dismissal was decided at an extraordinary board meeting on Thursday.

The automaker’s articles of incorporation, which govern its organization and activities, stipulate that a chairperson or cochairperson call and chair meetings of the board of directors. As Ghosn’s arrest was an emergency situation, Thursday’s meeting was called by another director.

Nissan aims to decide on a successor as soon as possible to return its management to a normal situation.

At the extraordinary board meeting, it was decided that a committee made up of three outside directors would select and propose Ghosn’s successor from among the current directors. The panel’s proposal will be made at a board meeting in December.

How Nissan will honor its agreement to have a top executive from Renault will likely be an issue.

The online edition of The Wall Street Journal reported Thursday that prior to the extraordinary board meeting, Nissan told Renault that it would not allow the French company to name Ghosn’s successor.

Nissan is also considering holding an extraordinary shareholders meetings before its regular meeting in June to dismiss Ghosn and Greg Kelly as directors. Kelly was also arrested in connection with the Ghosn case.

Dismissals of directors must be approved at a general shareholders meeting. However, it is unclear how Renault will respond, as the French firm has decided not to dismiss Ghosn as its chief executive officer.

Selecting new directors, who will be nominated at the extraordinary shareholders meeting, would be difficult without Renault’s approval. To obtain Renault’s understanding, Nissan is considering sending President and Chief Executive Officer Hiroto Saikawa and other executives to France to offer an explanation.

However, Saikawa and other board members could face questions if they remain as directors because of their responsibility in allowing Ghosn’s financial misconduct. Nissan is expected to set up a third-party panel to propose improvement measures on corporate governance and executive compensation.

‘Distorted’ capital ties

Top executives from Nissan, Renault and Mitsubishi are scheduled to meet this week in the Netherlands, where a venture overseeing their alliance is located. This is a regular meeting that had already been scheduled before Ghosn’s arrest, and those who cannot attend in person can take part via videoconferencing, according to sources.

Renault has the power to select the leader of the venture. As Ghosn has handled strategy for the alliance thus far, future management of the alliance will likely become a challenge.

Nissan wants to reexamine its capital relationship with Renault, which currently owns 43.4 percent of Nissan, while the Japanese company only has a 15 percent stake in its French partner. A senior Nissan executive described this capital relationship as “distorted.”

Meanwhile, the French government, which owns 15 percent of Renault, reportedly wants to see the two automakers build stronger ties to achieve an alliance “that cannot go backward.” As such a development could bring more jobs to France, its government is unlikely to allow Renault’s influence over Nissan to decline.



Enjoyed this story? Share it.


The Japan News
About the Author: The Japan News is published by The Yomiuri Shimbun, which boasts the largest circulation in the world.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Analysis, Economics

South Korea pulls out of intel-sharing pact amid spat with Japan

Seoul cites ‘grave change’ in security cooperation conditions attributable to Japan’s export restrictions for abolishing GSOMIA. South Korea decided to withdraw from the bilateral military intelligence-sharing pact with Japan on Thursday, amid escalating friction over trade and historical issues. In a televised announcement, Cheong Wa Dae said it has made the decision to abolish General Security of Military Information Agreement and will notify Japan via diplomatic channels by midnight on Saturday, the deadline for a decision on whether to renew the agreement. “The government deemed that Japan caused grave change in the bilate


By The Korea Herald
August 23, 2019

Analysis, Economics

Growing disaster risks exceed Asia-Pacific’‬s capacity to respond

This according to a UN Escap finding. The relentless sequence of natural disasters in Asia and the Pacific in the past two years was beyond what the region had previously experienced or was able to predict, and this is a sign of things to come in a new climate reality, according to the latest report by the United Nations Economic and Social Commission for Asia and the Pacific (Escap)‭. The Disaster Riskscape across Asia-Pacific The ‭Asia-Pacific ‭ ‬Disaster ‭ ‬Report 2019‭ released in Bangkok on Thursday reveals that recent disasters, especially ‬‬those ‭‬triggered by ‭ ‬climate ‭‬change ‭‬and environmental ‭‬degradation, ‭‬have deviated from their usual tracks and are growing in intensity, frequency and complexity. It is now more difficult to determine which areas should


By The Nation (Thailand)
August 23, 2019

Analysis, Economics

West Papua and its troubled history with Indonesia

Recent riots and protests are just symptoms of long simmering ethnic tensions. Protests have broken out in the Indonesian province of West Papua with a local parliament being set alight and buildings torched in Sorong, the province’s largest city. The protests, involving hundreds of people, occurred throughout the province on Wednesday with buildings set on fire, including a prison where 250 inmates escaped, and rocks and projectiles thrown at security forces. The protests erupted, in part, because of the detention of ethnic Papuan students in the Indonesian city of Surabaya over accusations that they had desecrated the Indonesian flag on its national day. But long running ethnic tensions between the native West Papuans and the Indonesian central government have plagued the province since it was incorporated into Indonesia in the 1960s. A colonial legacy After the


By Cod Satrusayang
August 23, 2019

Analysis, Economics

Japan believes N. Korea has already developed nuclear warheads

All of Japan is within range of Pyongyang’s ballistic missiles. According to the original version of the Japanese government’s 2019 white paper on defense, North Korea is believed to have already achieved the miniaturization of nuclear weapons and the development of nuclear warheads, The Yomiuri Shimbun has learned. This is the first time such statements have been included in the report. Regarding South Korea, which is intensifying its confrontation with Japan, the report lowered that nation’s ranking from the previous year among the countries and regions that are promoting security cooperation with Japan. The Japanese government is making arrangements to approve the 2019 white paper at a Cabinet meeting in mid-September. On North Korea’s military moves, the paper again said they posed a “serious and imminent threat.” The 2018 version of the report said there was a “possi


By The Japan News
August 22, 2019

Analysis, Economics

South Korea urges region to embrace multilateralism, free trade

Wide gap remains after bilateral meeting of Kang and Kono. The foreign ministers of South Korea and Japan remained at odds in their bilateral meeting held in China on Wednesday, reiterating their respective stances on Tokyo’s wartime forced labor and trade curbs. Foreign Minister Kang Kyung-wha and her Japanese counterpart, Taro Kono, met for 35 minutes on the sidelines of a trilateral meeting with their Chinese counterpart, Wang Yi, in Gubei Water Town near the Great Wall in northern Beijing. “Kang strongly urged Kono to retract the country’s decision to remove South Korea from its “whitelist” of countries with fast-track trade status u


By The Korea Herald
August 22, 2019

Analysis, Economics

Ho Chi Minh attracts nearly 4 billion USD in investment in 2019

Manufacturing and textiles among key sectors. HCM City attracted about US$3.63 billion of foreign direct investment (FDI) capital in the first seven months of this year, marking a year-on-year increase of 15.2 per cent, according to the municipal People’s Committee. Nearly $688.8 million came from 678 newly registered projects, up 26.9 per cent in value and 18.3 per cent in the number of projects from the same period last year. In the period, 2,668 foreign investors bought shares and acquired stakes of domestic enterprises with total registered capital of $2.6 billion, 28.3 per cent and 16.7 per cent higher respectively than in the same period last year. Meanwhile, HCM City granted business licences to 24,529 new domestic enterprises worth more than VND396 trillion ($17 billion), up 0.9 per cent and 25.7 per cent, respectively. Up to 71,874 existing enterprises were allowed to add a c


By Viet Nam News
August 20, 2019