When Carlos Ghosn was escorted off his private jet after landing at Tokyo’s Haneda airport in November 2018 and promptly arrested for alleged financial misconduct, simmering tensions between carmakers Renault and Nissan over his plans to create a single, cohesive company became all too public.
The two companies, along with Mitsubishi, had forged an alliance in 1999 after Renault rescued Nissan from bankruptcy. This inauspicious start led to an imbalance in the alliance – Renault held 43% of Nissan versus the Japanese company’s 15% stake in its partner. After dealing with the effects on the companies of Ghosn’s arrest, as well as COVID-created supply chain disruption and shifting global demand towards electric vehicles (EVs), a recent realignment of the alliance signals an attempt to reset both companies’ fortunes.
Ghosn had been instrumental in the alliance as “le cost cutter” from French automaker Renault. He was a pivotal figure in the corporate rescue of Nissan, first as chief operating officer in June 1999, then as chief executive officer from 2001. Ghosn was synonymous with the Nissan revival plan. But for Nissan the rescue and subsequent alliance came with strings that led all the way to the French government (which holds 15% of Renault shares).
