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Carlos Ghosn's arrest casts doubt on future of Renault-Nissan alliance

For years, France's Renault and Japan's Nissan struggled to make money in the global auto business. Then came Carlos Ghosn, a Renault executive who helped to orchestrate an unprecedented transcontinental alliance, combining parts of both companies to share engineering and technology costs. Now Ghosn's arrest in Japan for alleged financial improprieties at Nissan could put the nearly 20-year-old alliance in jeopardy. Ghosn, 64, born in Brazil, schooled in France and of Lebanese heritage, is set to be ousted this week from his spot as Nissan chairman. He could also lose his roles as CEO and chairman of Renault, threatening the alliance formed in 1999 that's now selling more than 10 million automobiles a year. He's been "the glue that holds Renault and Nissan together," Bernstein analyst Max Warburton wrote in a note to investors. "It is hard not to conclude that there may be a gulf opening up between Renault and Nissan." In fact, Nissan's investigation into alleged misconduct by Ghosn is expanding to include Renault-Nissan finances, sources told Reuters — in a further sign that Nissan may seek to loosen its French parent's hold on their global carmaking alliance. Nissan told Renault's board on Monday it had evidence of potential wrongdoing at Renault-Nissan BV, the Dutch venture overseeing alliance operations under Renault's ultimate control, three people with knowledge of the matter said. Renault's board planned to meet Tuesday to discuss Ghosn's fate. "Carlos Ghosn is no longer in a position where he is capable of leading Renault," French Finance Minister Bruno Le Maire told France Info radio, calling on Renault's board to meet "in the coming hours" to set up an interim management structure. The French government owns 15 percent in Renault and has a say in its operations. Nissan's board is to meet Thursday to consider Ghosn's fate. Nissan has said it will dismiss Ghosn after he was arrested for allegedly abusing company funds and misreporting his income. That opens up a leadership void at the entire alliance, for which Ghosn officially still serves as CEO and chairman. Ghosn added Mitsubishi to the alliance two years ago after the tiny automaker was caught in a gas-mileage cheating scandal. Renault owns 43.4 percent of Nissan, which owns 15 percent of Renault, with no voting rights in a partnership that began in 1999. Since 2016, Nissan has held a 34 percent controlling stake in Mitsubishi Motor Corp.

Carlos Ghosn, the cost cutter who cost a lot in compensation

PARIS — In his 40 years in the auto industry, the praise Carlos Ghosn has won for turning around businesses has regularly been matched by criticism over the amount he has been paid to do it. In the latest furore over his finances, Japan's Nissan Motor Co said on Monday it planned to oust Ghosn as chairman after alleging he had made personal use of company assets, among other acts of suspected misconduct. The scandal comes just five months after the 64-year-old head of the Renault-Nissan alliance narrowly won a shareholder vote at Renault over his 7.4 million euro ($8.5 million) pay package for 2017, after losing a 2016 vote. Brazilian-born, of Lebanese descent and a French citizen, Ghosn began his career in 1978 at tire maker Michelin, before moving to Renault in 1996, where he oversaw a turnaround at the French automaker that won him the nickname "Le Cost Killer." After Renault sealed an alliance with Nissan in 1999, Ghosn used similar methods to revive the ailing Japanese brand, leading to "business superstar" status in Japan, blanket media coverage and even a manga comic book on his life. As auto markets in western Europe and Japan struggled, Ghosn championed a cheap car for the masses in emerging markets and embraced the electric vehicle before many others. He also never made it a secret that he believed there were too many carmakers in the world and consolidation would continue — in 2016 he added Japan's Mitsubishi Motors to the alliance. But in recent months, attention has increasingly turned to how the complex web of cross-shareholdings between the alliance partners might be simplified to ensure it can thrive following the eventual departure of its main architect. In March, sources close to the matter told Reuters the alliance partners were discussing plans for a closer tie-up in which Nissan would acquire the bulk of the French state's 15 percent stake in Renault. With Japan's Yomiuri newspaper reporting on Monday that Ghosn had been arrested by Tokyo prosecutors on suspicion of under-reporting his salary, the alliance's plans for the future just got more pressing.Writing by Mark PotterRelated Video: Earnings/Financials Plants/Manufacturing Nissan Renault

Nissan bringing GT-R LM Nismo back to WEC

Things didn't go exactly as planned when Nissan entered Le Mans this year with the GT-R LM Nismo. First years of a new racing program seldom do. But the radical front-drive LMP1 prototype performed so poorly that it looked for a while like Nissan would scrap the program altogether. Fortunately, however, the Japanese automaker has announced that the GT-R LM Nismo it is coming back. Several changes are afoot for next season. For starters, while the prototype only competed in the 24 Hours of Le Mans this year, Nissan says it "will return to race in the FIA World Endurance Championship in 2016" – of which Le Mans is just part. It isn't saying how many of the races it will contest, exactly, but the calendar currently consists of nine events: Silverstone, Spa, Le Mans, the Nurburgring, Mexico City, Texas, Fuji, Shanghai, and Bahrain. Hopefully we'll be seeing the Nissan team at all nine events, especially the one at the Circuit of the Americas in Austin, where it can be seen undergoing testing in the fresh and massive image gallery above. Schedules aside, Nissan has appointed a new principal to run the team. Brought in "to share the heavy load on Ben Bowlby's shoulders" will be Mike Carcamo, who moves from his job at Nissan Mexico to serve as the WEC team principal. Outgoing principal Bowlby does, however, appear to be staying on in an as-yet undisclosed capacity. Finally, Nissan says that "multiple changes have been made to the car since Le Mans," and you can bet that's a huge understatement. We won't know what those changes constitute, exactly, but the automaker is certainly hoping that they'll prove enough to make the car competitive. In its debut at Le Mans this year, two of the three cars failed to finish, and the third wasn't classified since it didn't cover enough distance. Related Video: NISSAN GT-R LM NISMO TO MAKE RACING RETURN IN 2016 Nissan's innovative LM P1 racer to complete test programme before returning to WEC YOKOHAMA, JAPAN - 1 October 2015: Nissan today announced that the innovative Nissan GT-R LM NISMO will return to race in the FIA World Endurance Championship in 2016. The team has been working hard to address the technical issues faced at Le Mans in June and is in the middle of a comprehensive test and development programme to prepare the new car to race against the tough competition it faces in the LM P1 class.