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Automakers Renault, Nissan will become equals, with equal stakes in each other

TOKYO — Nissan and Renault have agreed to equalize the stakes they hold in each other, both sides said Monday, ironing out a source of conflict in the Japan-French auto alliance. Up to now, Renault Group has held a 43.4% stake in Nissan Motor Co., potentially giving it a larger say in how the Japanese automaker is run. It will transfer shares equivalent to a 28.4% stake to a French trust so each side will hold the same 15% stake in the other, according to the companies. The disparity between the holdings was a cause of friction, especially after Nissan became far more profitable than Renault. The agreement on the change is still being finalized and needs board approval from both companies. The companies said the shares in the French trust can eventually be sold but did not say to whom or how. They said the sale will be carried out in a “coordinated and orderly process” if a deal makes commercial sense to Renault Group, and that there is no time deadline. Until then, the voting rights would be “neutralized” for most managerial decisions, but the economic rights, such as dividends, will continue to go to Renault, the companies said. The top shareholder in Renault is the French government. Japanese Prime Minister Fumio Kishida met with French President Emmanuel Macron earlier this month. The alliance has had its ups and downs since it began in 1999, when Renault sent one of its executives, Carlos Ghosn, to then-struggling Nissan to lead a turnaround. Ghosn first served as Nissan's chief executive and later its chairman before he was arrested in late 2018 on various financial misconduct charges. The alliance, which also includes smaller Japanese automaker Mitsubishi Motor Corp. and remains one of the world's top auto groups, has been eager to put the Ghosn scandal behind it. Allegations against Ghosn include underreporting income, using investment funds for personal gain and illicit use of company expenses, including overseas homes and a yacht. Ghosn said he is innocent of all charges. He jumped bail in late 2019 and is now in Lebanon, which has no extradition treaty with Japan. The equalization of the crossholdings has been speculated about for some time. The companies called the move “an important milestone.” “The ambition is to strengthen the ties of the alliance and maximize value creation for all stakeholders,” said Nissan, based in the port city of Yokohama.

Nissan owners complain to feds about rusting floors

"You can feel it's soft right here," Jeff Talman told KSHB. "Right under his driver and passenger seats, the floorboards were rusting from the inside out," a KSHB reporter said. "This is a seven-inch area where it's actually rotted up here," Talman said. That was Jeff Talman, just one of many who have had issues with rusting floorboards in Nissan Altimas. KSHB reported the National Highway Traffic Safety Administration has received more than 400 complains about rust issues in 2002-2006 models. NBC highlighted a Chicago woman's 2005 car, which had rusted so much the floorboards were actually crumbling. "The hole was big enough to fit her foot through," NBC reporter Tom Costello said. "I'm not Fred Flintstone. This is not a good thing," Marie DeMaria said. While NBC reports snow and road salt could account for rust damage in some vehicles, that's probably not the cause in places that don't get snow and ice. And complaints are coming in from all over the country. Both Toyota and Ford have recalled hundreds of thousands of vehicles in the past few years because rusting underbody parts made the vehicles fall apart. Despite the number of complaints, Nissan isn't recalling the Altima vehicle models in question. "It's not a safety recall problem that's going to cause immediate death and injury if you have a hole in the floor. As a result of that, what we've seen is that Nissan has been able to get away with this problem," auto safety expert Sean Kane told WBZ-TV. KSHB reports the age of the cars is another way Nissan is able to avoid covering cost to fix them. "Once it's out of the warranty period, obviously they don't have any legal obligation. It becomes more of a customer service issue of whether they want to deal with it or not," body shop owner Bill Eveland said. NBC did reach out to Nissan for comment, but the carmaker reiterated that both it and the National Highway Traffic Safety Administration do not consider the rust problem to be a safety defect. This video includes an image from Getty Images.

Ghosn: 'While I'm proud of our EV leadership, I know it's not enough.'

Renault-Nissan CEO Carlos Ghosn has written something like a State of the Union on electric vehicles and the carbon economy. We'd sum it up as, 'we're working on it but we all need to work harder.' Ghosn believes all of the commitments made at the Paris COP21 climate change conference are a start, but "the support of the business community is imperative," in coordination with the public sector. He stresses that he's after an "orderly transition," one that uses what we have now in order to go where many believe we need to go. That means no threats or revolution, no "aggressive government intervention and centralized demand and control," but rather a "practical, affordable way to begin reducing dependence" on the fuel that turns the skies brown. Ghosn wraps up his manifesto this way: "The UN Secretary General recently said that we are the first generation to feel the effects of climate change and the last to be able to do anything to stop it. This is a call to action, and the auto industry is committed to doing its part." Based on the undeniable shift toward the electrification of the automobile, we know that the call is being answered. Given the limited market share EVs have today, it could still use some more people and companies picking up the phone. With vehicle numbers expected to grow from 800 million to more than two billion by 2050, "transition will occur one way or another," Ghosn writes. Head over to Forbes to read Ghosn's thoughts.