Nissan hits out at Renault, leaving alliance on shaky ground

Bloomberg

The decades-old alliance of Renault SA and Nissan Motor Co descended into open enmity as the two sides sparred over governance changes at the Japanese automaker, an apparent tit-for-tat following Nissan’s refusal to endorse a deal with Fiat Chrysler Automobiles NV.
Nissan Chief Executive Officer Hiroto Saikawa said it was “most regrettable” that Renault planned to stymie board reforms, after receiving a letter from the French company’s chairman, Jean-Dominique Senard. Renault’s salvo contrasts with more reassuring remarks from French Finance Minister Bruno Le Maire.
The hostilities imperil what has proven one of the most successful automaking alliances, a partnership the companies estimate lopped as much as
5.7 billion euros ($6.4 billion) from their manufacturing, purchasing and engineering costs in the 2017 financial year. The tensions mark a new low in a relationship already strained by the arrest in Tokyo last November of Carlos Ghosn, the industry titan who oversaw the carmakers and their alliance.
The implosion of Renault’s merger plans with Fiat brought the conflict into the open, with Nissan’s reluctance to endorse the deal said to be partially
responsible for its failure.
In the aftermath, Senard sent the letter threatening to block Nissan’s plans to overhaul its governance structure, changes hashed out in the wake of the Ghosn scandal. Renault holds a 43 percent stake in the Yokohama-based company.
In an unusual public statement, Nissan confirmed that it had received the letter, and upbraided Renault for its position.
The corporate-governance reform “was discussed thoroughly by Nissan’s board and approved by all board members, including Renault’s own nominees,” Saikawa said.