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CASE JLATING AND IMPLEME Renault and Nissan Attempt to Ease Tension with New Board Mr Senard, the respected outgoing boss of tyremaker Michelin, was appointed

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CASE JLATING AND IMPLEME Renault and Nissan Attempt to Ease Tension with New Board Mr Senard, the respected outgoing boss of tyremaker Michelin, was appointed chairman David Keohane in Paris and Kana Inagaki in Tokyo March 11 , 2019 of Renault in January and given the task of restoring trust and shoring up relations between the Renault, Nissan and Mitsubishi are to set up a new joint board in an attempt to ease tensions and French company and Nissan. 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 Source: The Financial Times Limited 2019. 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. Case Questions 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 carmak- ers under a single entity. 8-10. What has Mr. Ghosn's role been in the Renault-Nissan alliance, and what was the reason The replacement of Renault-Nissan BV and Nissan-Mitsubishi BV also comes amid inves- ligations by the companies on whether these Amsterdam-based joint ventures were potentially for his recent arrest? What has happened to him since then? used as vehicles for Mr Ghosn's alleged financial misconduct. 8-11. How was the alliance structured, and what was the proposed new alliance structure? 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 8-12. What is the relationship between board structure and power in organizations? 13 per cent of Nissan, while the Japanese group holds 15 per cent of Renault. Nissan owns 34 per cent of Mitsubishi. 18 bris Hasn't 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. Nissan has said that its internal investigation on Mr Ghosn, which it launched before his arrest, was not related to merger talks with Renault. Please use examples from the case study There are also tensions at state level as the French government, which has a 15 per cent stake in Renault, wants Mr Senard to be appointed chairman of Nissan. to illustrate the points. The Japanese company is wary of having the same chairman as Renault to avoid recreating the role Mr Ghosn held before his arrest. It fears this would concentrate too much power under a single individual. Meanwhile, the Tokyo District Court on Monday denied a request from Mr Ghosn's lawyers or him to attend the carmaker's meeting on Tuesday, where the decision on the joint board is expected to be made. Mr Ghosn, who remains a director at Nissan, was released under tight bail conditions that include a ban on his having any contact with people linked to the investigations. The former Nissan boss, who recently resigned as chief executive of Renault, has denied charges of falsification in Nissan pay and aggravated breach of trust, calling them "meritless."

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