With so many threats facing down today's automotive industry, including waning forecasts on the viability of brick-and-mortar dealerships and the rise of transportation-as-a-service (TaaS) alternatives, forging alliances and finding common cause is essential for automakers who intend to remain profitable long into the future. At one time, the partnership between Japanese manufacturer Nissan and France's Renault was the perfect example of this concept in motion.
However, thanks to stunning revelations surrounding the mishandling of company assets and the under-reporting of his pay, the actions of current Renault chief executive officer (CEO) and chairman (and former Nissan chairman) Carlos Ghosn could be the final straw that breaks this already fracturing alliance for good.
As David Keohane of The Financial Times reports, Japanese prosecutors charged Ghosn with misrepresenting his income on financial disclosures to the government. Following this development, Nissan's board of directors launched an internal investigation of Ghosn to verify these claims, as well as those of improperly using company assets to purchase real estate and fund other personal endeavors, and immediately stripped him of his title as chairman of the company.
After presenting their findings to Renault, the Japanese member of this automotive alliance hoped that their French counterparts would follow suit. Instead, Renault has opted to keep Ghosn on as CEO and chairman – much to the chagrin of the company's Yokohama-based allies.
Will the illicit actions of Ghosn, the person largely responsible for keeping this already fraying alliance together in the first place, be the nail in the coffin for one of the automotive world's most iconic partnerships? What comes next in the continuing saga of the once-strong bond between Nissan and Renault?
To answer these questions, and learn even more about what the future holds for the Nissan-Renault alliance, go ahead and dig into the full story from Keohane and the rest of the Financial Times editorial team by clicking on the link we've provided down below.