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Renault chairman dismisses reports Nissan wants to split from alliance

PARIS — Renault Chairman Jean-Dominique Senard said on Thursday there was a "real desire" within the top ranks of both companies for its alliance with Nissan to succeed, dismissing suggestions the partnership was on the rocks. Turmoil within the Franco-Japanese alliance, long dogged by internal rivalries, deepened following the November 2018 arrest in Tokyo of its architect and long-time boss Carlos Ghosn on charges of financial crimes, which he denies. Attempts to restore calm were dealt a fresh blow by Ghosn's dramatic flight from Japanese justice and a series of no-holds-barred allegations he has made from his refuge in Lebanon, including that he was the victim of a plot to oust him and that the alliance is now a "masquerade". Nissan has vigorously rejected Ghosn's stance, while both the Japanese firm and Renault have tried to rubbish suggestions their two decades old partnership is falling apart. "We have a board overseeing the alliance which is made up of people who are all extremely in favor of the alliance," Renault Chairman Senard told a briefing with reporters. "There is a common desire to associate our strategic plans and a real desire to make this alliance a success," he added, dismissing a report that Nissan was examining scenarios for a possible future outside of the alliance as "fake news." The 66-year-old declined to comment on anything related to Ghosn, adding: "I only think about the future." Renault shares were down 2% by 1123 GMT, underperfoming the broader auto sector which was down on news that Washington has threatened to impose tariffs on European car imports due to Europe's stance on Iran. Renault's French rival and Peugeot maker PSA Group also gave a flavor of some industry headwinds, reporting a 10% fall in its global sales last year as Chinese demand tanked. Renault is due to publish its 2019 global sales on Friday. JOINT PROJECTS Analysts see Renault-Nissan's cost-saving alliance as vital to both companies as the car industry battles a slowdown and huge investments in cleaner vehicles and automated driving, particularly as rivals PSA and Fiat Chrysler are merging to help meet these challenges. Renault held ultimately unsuccessful talks to combine with Fiat Chrysler last year, which Ghosn described at a Beirut news conference as a huge missed opportunity. Senard, who chairs the alliance's operating board, said on Thursday that once the partnership has been rebooted, other firms might potentially want to join.

Nissan plans to slash May car output in Japan by 78%

TOKYO — Nissan plans to slash the number of cars it produces at home in May by 78% from last year, as the impact of the coronavirus shakes the troubled automaker which has already been struggling with falling sales. As global automakers reel from plunging sales amid lockdowns imposed in many countries to curb the spread of the virus, the hit is particularly severe for Nissan, whose profitability has been deteriorating as it grapples with the turmoil that followed the ousting of former Chairman Carlos Ghosn. Nissan plans to manufacture around 13,400 vehicles next month, according to documents seen by Reuters, compared with nearly 61,000 units made in May last year. The cut represents a big hit to Nissan's plant in Kyushu, southern Japan, which the automaker plans to operate on a single shift for much of this month and all of next month, due to a lack of demand for the Rogue Sport SUV crossover model, according to the documents, which are not public. Output will decline 70% from initial plans to build around 44,800 units. In June, domestic production will be cut to 33,700 vehicles, a drop from around 63,700 units last year, and down 43% from a previous plan for around 59,300. Nissan declined to comment on its production plans. The automaker has stopped production at its plant in Tochigi, north of Tokyo, since early April, and plans to keep output suspended through the end of May. Periodic stoppages at Nissan's Oppama plant in Kanagawa Prefecture have been common since earlier this month. The coronavirus pandemic has piled urgency on Nissan's efforts to downsize, after two years of falling sales, deteriorating margins and depleting cash reserves has forced the company to restructure. Nissan's management has become convinced that the company needs to be much smaller and its latest recovery plan due next month will likely assume a cut of 1 million cars to its annual sales target, senior company officials told Reuters earlier this month. Automaking partner Mitsubishi, also suffering from a cut to demand for its cars, is planning to slash domestic output by nearly one-third over the next two months. As both Nissan and Mitsubishi struggle with tanking sales, production plans show one bright spot: Nissan is planning an increase in production of the Nissan Dayz minicar model, which Mitsubishi manufactures for Nissan for the Japanese market. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Carlos Ghosn's lawyers in Japan quit after client's flight to Lebanon

TOKYO — Japanese attorneys representing Carlos Ghosn, including lead lawyer Junichiro Hironaka, quit on Thursday following the former Nissan chiefÂ’s flight to Lebanon from Japan, where he had been fighting financial misconduct charges. Hironaka had been representing Ghosn in his defense against financial misconduct charges. His move, announced Thursday, was widely expected after Ghosn escaped to Lebanon late last month. A second lawyer in GhosnÂ’s three-person legal team, Takashi Takano, also quit on Thursday, according to an official at his office. A person who answered the telephone at the office of the third lawyer, Hiroshi Kawatsu, said she did not know if he still represented the former automotive executive. Hironaka said in a statement that the entire team working on the case at his office will quit but did not outline reasons. He has said before he felt some empathy for Ghosn's reasons for escape, while stressing he had hoped to win vindication in court. Hironaka is respected for winning high-profile cases in this nation where the conviction rate is higher than 99%. Among the cases he has handled is that of Atsuko Muraki, a Welfare Ministry official accused of falsely approving a group to qualify for mail discounts. She was acquitted in 2010. Also Thursday, Nissan released steps it was taking to prevent a recurrence of Ghosn's scandal, and reiterated its denouncement of Ghosn. The automaker said in a report submitted to the Tokyo Stock Exchange that Ghosn had the authority to “single-handedly” determine directors' compensation and such information was not shared with other departments at the company. The underreporting of his future compensation is among the allegations Ghosn faced in Tokyo. In a news conference last week in Beirut, Ghosn insisted again that he was innocent of the charges, which also included breach of trust in diverting Nissan money for his personal gain. He said he fled because he felt he could not expect a fair trial in Japan. Ghosn's flight while he was out on bail awaiting trial means his case will not go on in Japan. Interpol has issued a wanted notice but his extradition from Lebanon is unlikely. Ghosn has accused Nissan and Japanese officials of conspiring to bring him down to block a fuller integration of Nissan with its French alliance partner Renault SA of France. Ghosn, who has signed on an international team of lawyers, has expressed willingness to stand trial in Lebanon.