Japanese auto company Nissan has denied has denied media reports that there was a threat of dissolution of its alliance with the French auto giant Renault, announced the French auto maker on Tuesday. That announcement resulted in a surge in its stocks.
Shares of both Nissan and Renault dropped significantly to multi-year lows on Monday after media reports surfaced which predicted that the two companies – which have been in a partnership for 20 years now, could come to an end. The alliance between the tow companies was forged by the former boss of both the companies Carlos Ghosn who has now turned fugitive after escaping from Japan where he was scheduled to face a trial on charges of financial misconduct.
After the announcement, the shares of Renault climbed by 1.3 per cent on Monday at the opening of trading in Paris on Tuesday.
The chairman of Renault, Jean-Philippe Senard, told Belgian newspaper L’Echo that the alliance, which also later included another Japanese auto company Mitsubishi, is “solid, robust, everything but dead”.
Comments about the alliance was made by French Finance Minister Bruno Le Maire who termed the reports as being “malicious” those that predicted that some executives wanted to break up the alliance. He expected Renault to name a new chief executive within days to replace Thierry Bollore, he said while speaking to France’s CNews TV. Bollore was appointed during the era of Ghosn and was ousted this October.
According to reports one of the frontrunner for the job is Luca de Meo, who stepped down as the head of Volkswagen’s Seat brand last week. Reports however said his appointment could face issues because of a stringent non-compete clause in his contract firm.
It was “in no way considering dissolving the alliance” said Nissan in response to “speculative international media reports.” “The alliance is the source of Nissan’s competitiveness,” the Japanese automaker said in a statement. “Through the alliance, to achieve sustainable and profitable growth, Nissan will look to continue delivering win-win results for all member companies.”
After the November 2018 arrest of Ghosn in Japan, questions were raised about the future of the Renault-Nissan partnership. Ghosn was the linkman between the two companies in the alliance and he strived hard to keep the companies together which was a hard task, according to analysts, because of the very contrasting cultures at the two companies.
Those concerns were fueled after Ghosn escaped from Japan last month even though he was to face trials in Japan. Ghosn has denied the charges labeled against him. Ghosn fled Japan and went to Lebanon – one of his three countries where he is a citizen. At a oppress conference there, Ghosn alleged that he was arrested because certain forces were trying to break the alliance between Nissan and Renault and that would have not been possible as long as he was there.
(Source:www.theeconomictimes.com)
Shares of both Nissan and Renault dropped significantly to multi-year lows on Monday after media reports surfaced which predicted that the two companies – which have been in a partnership for 20 years now, could come to an end. The alliance between the tow companies was forged by the former boss of both the companies Carlos Ghosn who has now turned fugitive after escaping from Japan where he was scheduled to face a trial on charges of financial misconduct.
After the announcement, the shares of Renault climbed by 1.3 per cent on Monday at the opening of trading in Paris on Tuesday.
The chairman of Renault, Jean-Philippe Senard, told Belgian newspaper L’Echo that the alliance, which also later included another Japanese auto company Mitsubishi, is “solid, robust, everything but dead”.
Comments about the alliance was made by French Finance Minister Bruno Le Maire who termed the reports as being “malicious” those that predicted that some executives wanted to break up the alliance. He expected Renault to name a new chief executive within days to replace Thierry Bollore, he said while speaking to France’s CNews TV. Bollore was appointed during the era of Ghosn and was ousted this October.
According to reports one of the frontrunner for the job is Luca de Meo, who stepped down as the head of Volkswagen’s Seat brand last week. Reports however said his appointment could face issues because of a stringent non-compete clause in his contract firm.
It was “in no way considering dissolving the alliance” said Nissan in response to “speculative international media reports.” “The alliance is the source of Nissan’s competitiveness,” the Japanese automaker said in a statement. “Through the alliance, to achieve sustainable and profitable growth, Nissan will look to continue delivering win-win results for all member companies.”
After the November 2018 arrest of Ghosn in Japan, questions were raised about the future of the Renault-Nissan partnership. Ghosn was the linkman between the two companies in the alliance and he strived hard to keep the companies together which was a hard task, according to analysts, because of the very contrasting cultures at the two companies.
Those concerns were fueled after Ghosn escaped from Japan last month even though he was to face trials in Japan. Ghosn has denied the charges labeled against him. Ghosn fled Japan and went to Lebanon – one of his three countries where he is a citizen. At a oppress conference there, Ghosn alleged that he was arrested because certain forces were trying to break the alliance between Nissan and Renault and that would have not been possible as long as he was there.
(Source:www.theeconomictimes.com)
