8-12. What is the relationship between board structure and power in organizations? David Keohane in Paris and Kana Inagaki in Tokyo March 11, 2019 Renault, Nissan and Mitsubishi are to set up a new joint board in an attempt to ease tensions and strengthen integration within the world’s largest car partnership following the arrest and ousting of its architect Carlos Ghosn.

The three-way car alliance is expected to announce recently appointed Renault chairman Jean-Dominique Senard as head of the new body at a joint press conference in Yokohama on Tuesday, according to people briefed on the matter. It was first reported by Nikkei in Japan.

The announcement of the new board comes at a pivotal time for the alliance, which makes more than 10m new vehicles a year, as Mr Ghosn, the ousted Nissan chairman, prepares to step up his defence after his arrest in Tokyo for alleged financial misconduct in November.

The new body with decision-making powers over operations and governance would in effect replace and integrate the existing joint ventures and other committees between the three carmakers under a single entity.

The replacement of Renault-Nissan BV and Nissan-Mitsubishi BV also comes amid investigations by the companies on whether these Amsterdam-based joint ventures were potentially used as vehicles for Mr Ghosn’s alleged financial misconduct.

The complicated cross-holding arrangement between the groups would not change, Renault said on Monday as it confirmed talks on the new alliance structure. The French group owns 43 per cent of Nissan, while the Japanese group holds 15 per cent of Renault. Nissan owns 34 per cent of Mitsubishi.

Nissan and Mitsubishi declined to comment.

The tension between Renault and Nissan, the main partners, has increased in the wake of the arrest of Mr Ghosn, who was released on $9m bail last week after 108 days behind bars.

Mr Ghosn, the architect and former head of the alliance, pushed for a full merger between Renault and Nissan ahead of his arrest in November. He blames his arrest on a “plot and treason”

by Nissan executives opposed to his integration plan.