Renault will vote to back Nissan's move to give it boardroom seats

Renault will vote to back Nissan's move to give it boardroom seats
FILE PHOTO: The logos of car manufacturers Renault and Nissan are seen in front of a common dealership of the companies in Saint-Avold, France, Jan. 15, 2019. REUTERS/Christian Hartmann/File Photo -
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Christian Hartmann(Reuters)
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PARIS (Reuters) – French carmaker Renault, which is looking to preserve and strengthen its alliance with Nissan, said it would vote in favour of a move by Nissan to grant Renault’s representatives a seat on the committees of the Nissan board.

“Groupe Renault welcomes Nissan’s decision to grant Renault’s representatives a seat on the committees of the Nissan board, which will be presented to the general shareholders’ meeting on June 25,” Renault said in a statement.

“The agreement reached on Renault’s presence in Nissan’s new governance confirms the spirit of dialogue and mutual respect that exists within the Alliance,” added Renault, whose merger talks with Fiat-Chrysler broke down this month.

The French state has a 15% stake in Renault, while Renault itself owns 43.4% of Nissan.

French ministers have consistently highlighted the importance of ensuring the Renault-Nissan alliance remains strong, before planning any further consolidation with the likes of Fiat-Chrysler.

The 20-year-old partnership between Renault and Nissan has been strained since former leader Carlos Ghosn was arrested for suspected financial misconduct last year. Ghosn denies wrongdoing.

(Reporting by Gilles Guillaume and Sudip Kar-Gupta; Editing by Keith Weir and Alexandra Hudson)

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