Renault tells Nissan it will block governance reshuffle: report
Paris (AFP) –
French carmaker Renault has warned its alliance partner Nissan that it will block the Japanese auto firm's plan to overhaul its governance structure, fearing that the changes could reduce its influence, according to the Financial Times.
The reported move by Renault, which is Nissan's largest shareholder, is likely to further strain ties between the two firms after the shock arrest of former boss Carlos Ghosn.
A spokesman for Renault contacted by AFP did not immediately confirm the report.
The FT said that Renault chairman Jean-Dominique Senard had said in a letter to his Nissan counterpart, which has not been made public, that the French firm would abstain from a vote on long-planned changes to the governance structure during the Japanese company's annual meeting.
It would therefore deny the proposal the two thirds majority it needs to pass.
The report added, however, that Renault's position may change, citing sources familiar with Senard's approach.
Renault is pushing for a full merger between the pair but there is deep scepticism of the plan at Nissan.
The company recently made an attempt for a merger with Fiat Chrysler that would -- together with Renault's Japanese partners Nissan and Mitsubishi Motors -- have created a car giant spanning the globe.
But the Italian-US carmaker pulled the plug, saying negotiations had become "unreasonable" due to political resistance in Paris.
Relations between Renault and Nissan have been tested over the arrest in November of their joint boss Ghosn, who awaits trial in Japan on charges of financial misconduct.
? 2019 AFP