French Government Announces Resignation of Carlos Ghosn from Renault1

French Government Announces Resignation of Carlos Ghosn from Renault

Business

Ex Nissan CEO Carlos Ghosn back-stepped from Renault. Ghosn rocked the global automobile industry for more than twenty years. Bernard Jullien, an independent auto industry consultant, said it happens when somebody stays in power for an extended period. The 64-year-old resigned as chairman and CEO of the French car manufacturer on 23rd January. A representative from the French Finance Ministry announced that Ghosn left on Wednesday night. Bruno Le Maire, France’s finance minister, declared the news in an interview with Bloomberg TV. He said Carlos Ghosn resigned from the company, and it is time to appoint a new one instead. He aims to prepare the company for the future.

Tokyo police arrested Ghosn two months ago, on 19th November 2018. Japanese prosecutors claim Ghosn of perming financial misconduct while leading Nissan. Ghosn faces three claims in Japan including financial malpractice, underreporting income, and violating the trust of the company. On the other hand, Ghosn denies accepting the charges. At that time, Renault started plans to replace its longtime leader. He possessed top positions at both carmakers, just because of the partnership between them. Renault owned a 15% stake and planned to secure a board meeting on Thursday. Mitsubishi is one of the partners of the carmakers; the company joined partnership before three years. While Nissan and Mitsubishi dismissed Ghosn from the company after his arrest.

Renault refused to remove him out. The French government is the largest stakeholder in the company. Thus it pressurized Renault to dismiss Ghosn so that it can concentrate on strengthening the partnership. According to sources, Ghosn previously offered to resign his position in Renault. Currently, the company is estimating his pension and other payments. Renault appointed Thierry Bolloré as CEO after Ghosn’s arrest. Jean-Dominique Senard, CEO of Michelin, the tire-maker, could hold the chairmanship of Renault. After assigning new CEO and chairman, Renault intends to intensify efforts to heal the bitter gap that opened with Nissan.

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