It looks like the beginning of the end for the Renault Nissan Alliance. According to reports, multiple joint venture operations are being shut down and the staff is being dismissed, all in the wake of former CEO Carlos Ghosn’s financial misdeeds. Even the CEO office, which Ghosn used to manage daily functions for the Alliance, is being scuttled.
This is the writing on the wall that the Alliance itself is doomed. Many have pointed out that before Ghosn was arrested in Japan, he had declared his question to “make the alliance irreversible.”
If you take a close look at the Renault Nissan Alliance, it’s clear Nissan got the short end of the stick. The Japanese automaker made some decisions out of desperation and Renault took full advantage. Now, Nissan has fresh management and greater strength, but if anyone thinks the French automaker isn’t holding Nissan back, they probably work for Renault.
Last month Fiat Chrysler Automobiles proposed an equal partnership with Renault, but then suddenly withdrew its offer after the French government publicly approved of the arrangement. That led many analysts to believe Nissan and Mitsubishi voiced their displeasure, spooking FCA. Nissan members on Renault’s board actually abstained from voting on the matter, which didn’t bode well.
Source: Financial Times