As financial misconduct revelations emerged, the future of the car alliance led by Carlos Ghosn remains unclear.
Ghosn, considered a titan in the automotive industry, has been credited with turning around both Nissan and Renault before becoming the linchpin of the alliance the companies later formed. The Renault-Nissan-Mitsubishi Alliance sold 10.61 million passenger cars and light commercial vehicles in 2017, making it the number-one automotive group worldwide.
Nissan’s chief executive Hiroto Saikawa insisted the partnership will not be affected by this event.
Nissan shares in Asia had already ceased trading on Monday as soon as the news broke, but Renault shares — with Ghosn also being the CEO and chair of the French automaker — hit their lowest ever in 3 years. Renault’s stock was over 13 percent lower shortly before 12:00 p.m. (CET) Paris time.
Nissan and the French government each own 15 percent of Renault, and in turn, the French auto firm holds a 43 percent stake in Nissan. In a statement on Monday, the French President Emmanuel Macron told he would be extremely vigilant over the stability of the alliance between the two companies.
The cross-ownership alliance of Renault, Nissan, and Mitsubishi have all enjoyed an upswing in fortunes under Ghosn’s leadership. Ghosn, who is considered a hugely influential executive within the global automotive industry, earned the nickname “Le Cost Killer”, after successfully restructuring Renault in the late 1990s.