Renault Ousts Bolloré As Chief Executive -- WSJ
October 12 2019 - 3:02AM
Dow Jones News
By Nick Kostov and Stacy Meichtry
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (October 12, 2019).
PARIS -- Renault SA fired Chief Executive Thierry Bolloré as the
French car maker seeks to turn the page on Carlos Ghosn's decades
of leadership and reboot its globe-spanning alliance with Nissan
Motor Co.
Renault's board voted Friday to remove Mr. Bolloré, effective
immediately, after he refused to resign. Three of Renault's 18
directors abstained from the vote while the rest backed the move,
Chairman Jean-Dominique Senard said.
"I had hoped this would be done differently," Mr. Senard
said.
Mr. Bolloré didn't respond to a request for comment. He told
French newspaper Les Echos ahead of the board meeting that "the
brutality and the totally unexpected character of what is happening
are stupefying."
Mr. Bolloré's ouster is part of an effort by Renault and its
Japanese partner to sweep away executives who were close allies of
Mr. Ghosn when he headed both auto makers. The alliance has been in
upheaval since Mr. Ghosn was arrested in November and later charged
in Japan with financial misconduct -- allegations he denies.
Nissan this week replaced Chief Executive Hiroto Saikawa, a
longtime lieutenant of Mr. Ghosn, with a triumvirate of
executives.
Mr. Bolloré was Mr. Ghosn's deputy at the time of the auto
titan's arrest, and he was swiftly tapped to replace him and
stabilize Renault's operations while Mr. Ghosn sat in a Tokyo jail
cell.
Since then board members have fretted over Mr. Bolloré's
struggle to lower tensions with Nissan executives who accuse him of
foot-dragging in the companies' efforts to probe Mr. Ghosn's
tenure. The board was also worried about a decline in Renault's
revenue and profit.
"The alliance needs a breath of fresh air," Mr. Senard said.
"It's nothing personal."
Renault shares rose more than 5% on Friday.
The company's board tapped Chief Financial Officer Clotilde
Delbos to take over as interim CEO while it searches for a
replacement.
Renault's sales chief, Olivier Murguet, and Jose Vincente de los
Mozos, its manufacturing and supply chain head, were named deputy
managing directors to assist Mrs. Delbos.
The shake-up is a sign of how urgently Renault wants to heal the
rift with Nissan. The French auto maker has been pushing to deepen
the alliance and add new members to better cope with a darkened
outlook for the automotive industry.
Earlier this year, Renault was in a merger dance with Fiat
Chrysler Automobiles NV, but a deal fell apart after the two car
makers failed to secure the explicit support of Nissan. The merger
negotiations were led by Mr. Senard, who came over from Michelin to
take the chairmanship at Renault early this year.
Arndt Ellinghorst, an auto analyst with brokerage Evercore ISI,
wrote in a note that Mr. Bolloré's ouster came "as another blow for
a company that urgently needs direction and stability."
"Renault has to deal with end-markets and customers and not with
itself!" Mr. Ellinghorst wrote. "We are worried that Renault's
competitive position will further erode in an automotive world
that's getting tougher by the day."
Write to Nick Kostov at Nick.Kostov@wsj.com and Stacy Meichtry
at stacy.meichtry@wsj.com
(END) Dow Jones Newswires
October 12, 2019 02:47 ET (06:47 GMT)
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