Nissan Motor shareholders are widely expected to back Chief Executive Hiroto Sai...
TOKYO - Nissan Motor shareholders are widely expected to back Chief Executive Hiroto Saikawa at an annual general meeting on Tuesday, extending his tumultuous tenure at an automaker shaken by scandal and the loss of trust with alliance partner Renault.
Although that maneuvering helped pull the Nissan-Renault alliance back from the brink of crisis, the former Ghosn lieutenant is now faced with the unenviable task of trying to shore up a two-decade-old partnership that many in Japan see as lopsided, deeply inequitable and shot through with mistrust on both sides.
Renault, by far the smaller of the two, owns 43.4% of Nissan after rescuing it from the brink of bankruptcy in 1999. Nissan owns 15% of the French company, but without voting rights. That unequal relationship has long been a source of friction. “Almost a week was spent in negotiations and clearly that would damage trust toward Renault and probably between the two companies,” said the person familiar with Nissan’s thinking.By agreeing to Renault’s demand, Saikawa has dialed down tensions and likely won a reprieve on his two-year tenure. The embattled CEO will be re-appointed as a director if shareholders vote to approve a new 11-member board, a widely expected outcome with Renault’s backing.
Reappointment would also see him defy opposition by proxy advisors brought about by concerns that with Saikawa in charge, the automaker would be unable to make a “clean break” from the Ghosn era. Renault CEO Bollore is also a former Ghosn ally. “Senard has been a disappointment for us. Trust in him has fallen quite a bit,” said a second person familiar with Nissan’s thinking.
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