Japan, France Affirm Strong Govt Support for Renault-Nissan

November 21, 2018

Tokyo/Paris--The Japanese and French governments on Tuesday confirmed their strong support for the alliance of Renault SA and Nissan Motor Co. <7201>, in the wake of the arrest of Nissan Chairman Carlos Ghosn the previous day.

The confirmation was made during phone talks between Japanese Minister of Economy, Trade and Industry Hiroshige Seko and French Minister for Economy and Finance Bruno Le Maire.

In a joint statement, the ministers said they affirmed the two governments' "strong support" for the Renault-Nissan alliance, which is "one of the greatest symbols of Franco-Japanese industrial cooperation," and for the companies' "shared wish to maintain this winning cooperation."

Ghosn was arrested by the special investigation squad of the Tokyo District Public Prosecutors Office for understating his compensation in violation of Japan's Financial Instruments and Exchange Act.

He is also chairman and chief executive officer of Renault.

Renault owns 43 pct of Nissan, a major Japanese automaker, which has an equity stake of 15 pct in the French auto giant. The French government is a major shareholder of Renault, with a stake of 15 pct.

In a related development, Renault said in a statement on Tuesday that it is "particularly focused on the consolidation" of the alliance, which also includes Mitsubishi Motors Corp. <7211> of Japan. Nissan is the top shareholder of Mitsubishi Motors.

Renault said that it "ensures on a daily basis the efficiency of its partnerships within the framework of the alliance," while noting that it is carefully monitoring the situation after the arrest of Ghosn. Jiji Press