Abe, Macron Seen Having Short Talks on Renault-Nissan

November 30, 2018

Tokyo--Japanese Prime Minister Shinzo Abe and French President Emmanuel Macron are seen having short talks about the alliance among Renault SA, Nissan Motor Co. <7201> and Mitsubishi Motors Corp. <7211>, informed sources said Friday.

The two countries are arranging that such a session be held on the sidelines of a two-day summit of the Group of 20 advanced and emerging economies in Buenos Aires, Argentina, starting later on the day, according to the sources at the Japanese government.

France asked for the session. The two leaders are expected to have only a short conversation given their tight schedules, the sources said.

"The Nissan-Renault alliance is a symbol of industrial cooperation between Japan and France," Deputy Chief Cabinet Secretary Yasutoshi Nishimura told a news conference. "It is important to maintain the relationship in a stable fashion."

But Nishimura said no firm decision has been made on possible talks on the alliance between Abe and Macron.

According to Thursday's edition of the French economic newspaper Les Echos, Macron wants to discuss the three-way alliance with Abe.

A French government adviser told the newspaper that the Macron administration is ready to ask Renault to raise its equity stake in Nissan if a power struggle starts in the three-way alliance. The French government is the top shareholder of Renault.

Renault holds a 43.4 pct equity stake in Nissan. The major Japanese automaker owns 15 pct of the French partner, but its stake does not carry voting rights.

Although Nissan aims to review what it regards as an "unfair" capital alliance with Renault, French Economy and Finance Minister Bruno Le Maire says the current ownership ratios should be kept as they are.

On Thursday, Renault, Nissan and Mitsubishi held a meeting of their leaders for the first time since alliance boss Carlos Ghosn was arrested last week.

At the meeting, the three companies agreed to maintain their alliance and end the autocratic management by Ghosn, who has been dismissed as Nissan and Mitsubishi chairman.

Le Maire and Japanese industry minister Hiroshige Seko held talks in Paris last week over the three-way alliance.

Seko said the alliance is a matter involving private-sector companies, while Le Maire claimed that the head of Renault should continue to lead the three-way alliance.

Japanese public prosecutors arrested Ghosn on Nov. 19 for allegedly underreporting his pay by more than 5 billion yen in securities reports over the five years through fiscal 2014. Jiji Press