Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Meet the 2021 winners
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
April 30, 2015 01:00 AM

Ghosn loses clash with French state on Renault control

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Ghosn is a strong believer in the principle of one share, one vote. For the French government, double-voting rights help ensure continuity in a company already partially owned by a powerful foreign partner, Nissan.

    STRASBOURG (Bloomberg) -- Renault CEO Carlos Ghosn lost a clash with French Economy Minister Emmanuel Macron, as the Socialist government won a shareholder vote that will increase its influence at Renault.

    A proposal to allow Renault to sidestep a French law that provides double-voting rights for long-term shareholders such as the French government failed to win the two-thirds support it needed to pass.

    Investors holding 39 percent of Renault shares, including the government, voted against the proposal.

    Today's annual meeting followed three weeks of tense exchanges after the state grabbed more influence by unexpectedly boosting its stake in Renault.

    For Ghosn, the 2014 law that gives extra voting rights to those owning stocks more than two years represents a flagrant disregard of the principle of one share, one vote.

    For the French government, it's a way to ensure continuity in a company already partially owned by a powerful foreign partner.

    "I want to see this through to the end," Macron told reporters in Strasbourg on Tuesday. "It's normal that a state defends its rights. Who is upset by double voting rights? The people -- the speculators, the market investors -- who are short-termists. It's a real ideological debate."

    Renault's Japanese partner, Nissan Motor Co., holds 15 percent of the French manufacturer, with no voting rights.

    "We are not interventionist," Macron said. "But the state will not be a powerless shareholder."

    Relationship cooled 

    Ghosn is CEO of both companies and has steered the 16-year-old Renault-Nissan alliance for a decade. He's due to collect 7.22 million euros ($8.1 million) in cash and shares in remuneration from Renault for last year, nearly three times what he made in 2013.

    The figure concerned some in the French government, according to people familiar with the situation, who asked not to be named discussing private details.

    The state's move on the shares shows how its relationship with Ghosn has cooled.

    Macron shocked the CEO by giving him only a few hours' notice of the stake increase before making it public on April 8, people familiar with the matter said.

    Renault spokesman Bruno Moreau declined to comment on discussions between the company and the government.

    Ghosn called two successive emergency board meetings at Renault and Nissan amid concerns that the French stake increase may damage the alliance. Ghosn asked shareholders to vote against the double-rights rule today under an opt-out allowed in the law.

    The French state's win today boosts its voting rights to 28 percent from 17.7 percent at the beginning of April. The government had said it would restore some equilibrium by selling its additional shares after today's ballot.

    The law also automatically doubles the voting rights of Mercedes-Benz maker Daimler, which holds 3.1 percent of both Renault and Nissan under another cross-shareholding deal.

    Power shift 

    Ghosn still has options to shift the balance of power. Renault and Nissan could decide to change the terms of their agreement, lowering Renault's stake in the Japanese manufacturer and in turn activating Nissan's votes in Renault, according to people familiar with the matter.

    Another option would be to sell new shares to dilute France's stake. The company could then try again next year to pass a motion nullifying double voting rights, the people said.

    When Renault first bought shares in Nissan, the Japanese carmaker was in disarray and was losing money.

    Sixteen years later, its revenue is twice Renault's, and it contributed more than 80 percent of Renault's 1.89 billion euros in consolidated net income last year.

    Nissan's clout 

    The link with Nissan helped Renault survive Europe's economic crisis in better shape than many peers. The partners sold about 8.5 million vehicles in 2014, making it the world's fourth-largest carmaking group.

    Still, Renault's unions are concerned about keeping engineering and industrial jobs in France as Nissan's clout increases.

    They have backed Macron in his quest to maintain influence at the carmaker, which was state-controlled for more than half a century after World War II. "The employees feel that the alliance now favors Nissan," said Laurent Smolnik, an FO union leader at Renault. "Renault shouldn't be weakened."

    RECOMMENDED FOR YOU
    CEO of wiring systems supplier Leoni to speak at Automotive News Europe Congress
    Recommended for You
    Aldo Kamper Leoni 2022
    CEO of wiring systems supplier Leoni to speak at Automotive News Europe Congress
    Wolfgang Bremm von Kleinsorgen Mercedes web
    Mercedes Central, Eastern Europe boss von Kleinsorgen to speak at Automotive News Europe Congress
    Riccardo Ferrario Idra web 2022
    Riccardo Ferrario of Giga Press maker Idra to speak at Automotive News Europe Congress
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
        • Meet the 2021 winners
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us