Carlos Ghosn makes yet another bid for bail in Tokyo

Bloomberg

At this time of year, Carlos Ghosn would normally be hobnobbing with the global elite at the World Economic Forum in Davos. Instead, he’s languishing in a Tokyo prison.
Now the ousted Nissan Motor Co chairman is making a last-ditch effort to win release on bail by pledging to remain in Japan before his trial for alleged financial misconduct. He’s even offered to wear an electronic tracker and be monitored by private security guards, both at his own expense.
“I will reside in Japan and respect any and all bail conditions the court concludes are warranted,” Ghosn, 64, said in a statement. “I will attend my trial not only because I am legally obligated to do so, but because I am eager to finally have the opportunity to defend myself.”
Ghosn has been in custody since November 19, accused of financial crimes that could put him behind bars for decades. The auto titan has been indicted for understating his income at Nissan by tens of millions of dollars and transferring personal trading losses to the carmaker. Nissan also claims that Ghosn misused company funds, including for homes from Brazil to Lebanon, and hired his sister on an advisory contract. Ghosn has denied wrongdoing.

Sudden Fall
His downfall, as sudden as it was unexpected, has roiled the two-decade alliance between Nissan and France’s Renault SA, which he dominated as chairman of both companies and of the entity that governs their partnership. France’s finance minister and Nissan CEO Hiroto Saikawa were both quick to downplay a report in the Nikkei newspaper over the weekend that the French side was planning to put the two carmakers under one holding structure.
During two decades astride the global auto industry, Ghosn became one of the most celebrated corporate chieftains of his generation, epitomising an elite cadre of brash, jet-setting industrialists focussed squarely on the bottom line.
While Nissan fired Ghosn almost immediately, he still retains his posts at Renault and at the alliance — though probably not for much longer. Michelin Chief Executive Officer Jean-Dominique Senard is expected to join Renault’s leadership, people familiar with the matter have told Bloomberg News.
Renault’s executive board may meet on Wednesday and name Senard non-executive chairman and head of the alliance, and at the same time
appoint Thierry Bollore as Renault’s CEO, Le Figaro reported. Bollore is currently acting as CEO on an interim basis. A Renault spokesman declined to comment.
Tensions are simmering on both sides of the alliance because of its lopsided structure. While Nissan has outgrown Renault in sales and profits, the Japanese company has far less influence. It owns 15 percent of Renault, which in turn has 43 percent of Nissan.
France is Renault’s most powerful shareholder, with a 15 percent stake, extra voting rights and two seats on the board. Mitsubishi Motors Corp was added to the alliance in 2016.
A delegation including Martin Vial, a Renault director designated by the French state, visited Japanese officials including Saikawa in Tokyo.
According to people close to the delegation, the discussions focussed on possible ways and ideas to cement the Renault-Nissan alliance, with the creation of a single holding company for both carmakers being one of the options.
The people emphasized that no proposal was made at the meeting and it’s too early to discuss concrete plans, asking not to be identified because the deliberations are confidential.
Bruno Le Maire, the French finance minister, downplayed prospects for a change to the alliance. “No shareholding re-balancing or modification of cross shareholdings between Renault and Nissan are on the table,” he told Journal du Dimanche in an interview published. He reiterated that France wanted “solid and stable” governance at the helm of the company.
The alliance partners aren’t yet at a stage where they can further discussions on their capital relationship, and Renault has to sort out its management structure before the two boards can have a thorough discussion, Saikawa told reporters. Saikawa said he hadn’t heard that the French government has proposed a merger of Nissan and Renault.