Renault’s board proposed the renewal of Carlos Ghosn’s CEO position for another four years and appointed Thierry Bollore as chief operating officer.
The appointments put to rest weeks of speculation about Renault’s future leadership and ensure Ghosn will continue to shape the company through a jarring technology transition.
The board said on Thursday it has “renewed its confidence” in Ghosn as Renault CEO and chairman and also as chairman and CEO of the Renault-Nissan Alliance.
The board’s recommendation will be submitted to Renault’s annual shareholders’ meeting on June 15, 2018.
The board named three priorities:
• oversee the strategic objectives of the Renault’s “Drive the Future” plan ending in 2022
• take decisive steps to make the alliance irreversible
• strengthen the succession plan for Renault.
The promotion puts Bollore, 54, in line to succeed Ghosn, 63, at the top job.
Ghosn saved Nissan from near-collapse almost two decades ago and spearheaded the globalization drive that now unites carmakers from across continents. He remains chiarman there and at Mitsubishi, which is controlled by Nissan. He has been Renault CEO since 2005 and chairman since 2009.
The uncertainty about Ghosn’s role has served to highlight tension within Renault’s management and questions about its longer-term leadership.
Earlier this week, France, which owns a 15 percent stake in Renault, signaled that the board would support a renewed mandate for Ghosn’s mandate, if he was given a No. 2. France backed the nomination of Bollore, a French citizen who started his career with tiremaker Michelin, like Ghosn.
The government wants Ghosn to prepare a road map by June on how to better integrate an alliance with longtime partner Nissan as well as coming up with a progressive succession plan, an economy ministry official said at the time, asking not to be identified in line with policy.
Bollore is “suitably qualified for the job,” Evercore ISI analyst Arndt Ellinghorst, wrote in a note this week, adding that he may be perceived as a “more caring custodian of French jobs and interests.”
The new structure could give the French government political cover to reduce its stake, ultimately making a full merger of Renault and Nissan “a very real possibility,” Ellinghorst said.
Ghosn said a year ago there would be no merger between Renault and Nissan as long as the French government is a shareholder. France raised its stake in 2015, under President Emmanuel Macron, who was economy minister at the time. The state has no plan to sell Renault shares, the government official said.
Bloomberg – Automotive News
