The world’s top auto alliance of Nissan, Mitsubishi, and Renault are meeting on Tuesday in Japan where they are going to chart out the future of the alliance. The alliance built by Nissan’s founder Carlos Ghosn is in trouble after he was removed from the top post due to charges of financial misappropriation.

Renault is looking to make a new alliance with the other two car manufacturers Nissan and Mitsubishi so that they can collaborate better after Ghosn was imprisoned. Though Ghosn is making efforts for a merger with Renault, Nissan was unhappy with it due to the presence of the tainted ex-chair. Moreover, Renault owns 43% of the company and set a new alliance which may lead to better collaboration. The three companies are planning to have a joint board with the Renault chairman Jean-Dominique Senard most likely leading to being the head. Renault in a statement said, “The proposed agreement will have no impact on the existence of the alliance agreement and the cross-shareholding structure, which will both remain in place.” The partners will be talking to the press at their headquarters on Tuesday in Yokohama.

Court denies Ghosn request to attend the board meeting:

Ghosn who was detained in a detention center in Tokyo was allowed to be released after he posted a bail of $9 million last week. He is charged with misreporting his salary for over a decade and has also been part of financial misconduct. Renault is also reviewing the payment made to Ghosn and prosecutors are investigating the financing of his wedding. Post his release, the ex-chairman of Nissan wanted to attend the board meeting of which he is part of for more than 2 decades. In a statement released by his spokesperson on Ghosn not allowed in the board meeting, it read ‘Mr. Ghosn is disappointed that the court denied his request to attend the Nissan board of directors meeting’.

His arrest had created a rift between Nissan and Renault which made the alliance highly unlikely. But now, the three heads have decided to put the differences aside and forge a new alliance.

The top shareholder is the French government in alliance with Nissan having a share of 15% non-voting stake. Renault, which owns 43% of Nissan after it was rescued from bankruptcy. While Renault also confirmed that it was in negotiations with Nissan and Mitsubishi for a new alliance and the new alliance will hopefully help in better collaboration and cleaning up the financial mess created by Ghosn.

Stephen Wall

Stephen Wall has joined FinanceTwenty team as a financial news writer and analyst. He has years of financial market experience with foremost publications. He has also worked in several famous financial institution. Currently, he contribute daily stock market updates and in depth analysis of leading stocks.

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