New Joint Board Will Be Created By Renault, Nissan and Mitsubishi: Declares MoU

  • 13th, Mar 2019 12:55 PM
  • Resham Aswani
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Carmakers Renault, Nissan and Mitsubishi  Motors unveiled the creation of a new joint board in the recent memorandum of understanding (MoU) .The newly founded board structure will be headed by Renault Chairman Jean-Dominique Senard & the other three key members – Renault's Thierry Bolloré, Nissan's Hiroto Saikawa and Mitsubishi's Osamu Masuko will be the CEOs of respective firms.

Ghosn, recently liberated on bail in Japan, was arrested over alleged financial misconduct in November 2018, his arrest resulted in the creation of the three-way alliance, which now surpass all other rival groups.

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The MoU assured that the operational decisions concluded by the board will be “consensus-based, furthering the Alliance’s ‘win-win’ approach” & promised to hasten up operational procedures “through key focus on deliveries of strategic common projects” which will be informed to the board in order to accomplish the aim of “quick decision making”.

The new board aims at bringing the operational co-operation & coordination between the three-Nissan, Renault and Mitsubishi Motors and paving a new path for the hiking up the value of its respective shareholders and employees, and to strengthen their association.

To maintain the status of Nissan after the downfall of Ghosn, Renault approved and let Nissan’s special committee to fix Ghosn's replacement as Nissan chairman. The MoU announced that Senard should be a natural candidate for the designation of vice chairman and representative director of Nissan.

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Although Prior to the arrest of Ghosn, there had been plans for the collaboration of Nissan and Renault, the recent outperformance of Japanese firm over Renault brought discontentment among Nissan executives due to the French company's dominance within the alliance.

In an interview in January which held inside his Tokyo detention centre, Ghosn called his arrest as a "story of betrayal" based on fury within the Japanese automaker. Ghosn alleged that his disgrace was planned because of the discussions to merge Nissan & Renault.

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The 65-year-old business tycoon wanted to become part of Tuesday's board meeting in Tokyo but was not permitted by the court for the same. Although he was instantly uncrowned from the designation as the director of the company when the allegations publicized, he is still referred as a board member till April 8, when an extraordinary meeting of shareholders will finalize his removal.