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US approves extradition of Americans accused of arranging Carlos Ghosn's escape

In the latest chapter of ex-Nissan CEO Carlos Ghosn's dramatic downfall, two Americans are about to face Japan's notoriously tough justice system. The US State Department has approved the extradition of Michael and Peter Taylor, who are accused of helping Ghosn flee Japan, reports the Associated Press. Ghosn was under house arrest in Japan, awaiting trial for alleged financial malfeasance during his tenure as head of Nissan and the Renault-Nissan Alliance. In December 2019, Michael Taylor (pictured), a former member of the US Special Forces, and his son Peter, allegedly smuggled Ghosn out of Japan in a musical instrument case on two charter flights, from Japan to Turkey, and then from Turkey to Ghosn's childhood home of Lebanon. According to the AP, the Taylors received two payments from the Ghosn family totaling $1.36 million (one to Peter Taylor's company and the other in cryptocurrency). Michael Taylor ran a business security firm after retiring from the US Army. The Taylors have been in jail in Massachusetts since their arrest in May. A Federal judge was attempting to block the extradition request from Japan, but on Wednesday, the State Department overruled her, the Taylors' lawyers said. Ghosn, for his part, maintains his innocence and says that he fled Japan because he didn't expect a fair trial in Japan's court system, which has a 99.9 percent conviction rate. Unless this saga takes another unexpected turn, the Taylors will now have to face that very system. Government/Legal Nissan Renault

Renault to propose joint holding company with Nissan, Nikkei reports

TOKYO — Renault SA will propose to Nissan Motor Co a plan to create a joint holding company that would give both firms equal footing as the French automaker seeks further integration with its Japanese partner, the Nikkei newspaper reported on Friday. Under the proposal, both firms would nominate a nearly equal number of directors to the new company in which ordinary shares in both Nissan and Renault would be transferred on a balanced basis, the newspaper said, without citing sources. This would effectively dilute the stake held by the French government in Renault to around 7-8 percent, from its current 15 percent, it added. The new company would be headquartered in a third country, such as Singapore. Renault plans to make the proposal to Nissan soon, the Nikkei said, having modified an earlier merger idea that Nissan rejected on April 12. Nissan declined to comment on the issue. The Financial Times newspaper reported that both Nissan and the Japanese government have refused to engage in merger talks with Renault. The report of the proposal comes as the outlook for the alliance — one of the world's top automaking partnerships — has clouded since the arrest in November of its main architect, Carlos Ghosn, for suspected financial misconduct. It also comes as Nissan's financial performance struggles following years of focusing on volume sales over building its brand, particularly in the United States, its biggest market. Nissan slashes its forecast This week, the Japanese automaker slashed its profit forecast for the year just ended to its lowest in nearly a decade, citing weakness in its U.S. operations. Renault for years has been vying for a closer merger with Nissan, which it rescued from the brink of bankruptcy two decades ago. Ghosn had been working to achieve a deeper integration before his arrest on financial misconduct charges in November last year. While the automakers have been consolidating many of their operations over the past decade, including procurement and production, many executives at Nissan have opposed an all-out merger with Renault. Instead, Nissan has argued for a more equal footing with Renault, which holds a 43 percent stake in its bigger partner. Nissan holds a 15 percent stake in Renault. It was unclear whether Renault would hold the casting vote in major decisions at the new company, as it did in Renault-Nissan B.V., a strategic management company jointly held by both companies that oversaw operations for the partnership.

Tier 1 suppliers call GM the worst OEM to work with

Among automakers with a big US presence, General Motors is the worst to work for, according to a new survey from Tier 1 automotive suppliers, conducted by Planning Perspectives, Inc.
The Detroit-based manufacturer, which has been under fire following the ignition switch recall and its accompanying scandal, finished behind six other automakers with big US manufacturing operations. Suppliers had issues with trust and communications, as well as intellectual property protection. GM was also the least likely to allow suppliers to raise their prices in the face of unexpected increases in material cost, all of which contributed to 55 percent of suppliers saying their relationship with GM was "poor to very poor."
GM's cross-town competitors didn't fare much better. Chrysler finished in fifth place, ahead of GM and behind Dearborn-based Ford, which was passed for third place this year by Nissan. Toyota took the top marks, while Honda captured second place.