The fate of Nissan and Renault have not been that smooth since the former chairman of Nissan, Carlos Ghosn was arrested by Tokyo police and held under detention. Now, the French government, which has 15% stake in Renault, has informed Japanese government that it will seek an integration between Nissan and Renault. Post integration, both the companies would be held under a single holding company.
It is worth noting that Carlos Ghosn has been denied bail multiple times he has applied for it. It is likely that the mastermind behind Renault-Nissan-Mitsubishi alliance would have to stay in the jail even months. It has to be noted that despite the allegations and on-going detention, Renault hasn’t removed Ghosn from the board, where he stays as a chairman and chief executive. All the while, Renault has been receiving pressure.
Now that the French government has intervened, it’s very likely that Japan would accept the merger that is expected between Nissan and Renault. The actual decision was shared with Japanese officials during a talk they had with French counterparts. Sources say that the decision is in light of the influence by the President of France.
Ever since Carlos Ghosn was arrested, the French government has been trying to make things right. It cannot ignore the whole scenario, being the biggest stakeholder in Renault. While previous discussions did confirm that there would be stable relationship between Nissan, Renault and Mitsubishi, the merger is becoming a potential possibility for the automotive industry.
Carlos Ghosn was arrested back in November and has been in detention since then. Multiple attempts to get bail have been failed and Ghosn’s lawyers also believe that he would have to spend some more time in the jail. Renault has not made a comment on the latest happenings so far.
