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Renault names new leaders as jailed Carlos Ghosn bows out

PARIS — Renault appointed Michelin boss Jean-Dominique Senard as its new chairman on Thursday, after Carlos Ghosn was forced to resign in the wake of a financial scandal that has rocked the French carmaker and its alliance with Japan's Nissan. Senard will become chairman immediately, the company said, with deputy chief executive Thierry Bollore taking over Ghosn's other Renault role as full CEO. The appointments may begin to ease a Renault-Nissan leadership crisis that erupted after Ghosn's Nov. 19 arrest in Japan and swift dismissal as Nissan chairman. Senard, 65, now faces the task of soothing relations with Renault's Japanese partner and resuming talks on a new alliance structure to cement the 20-year-old partnership. "It's important that this alliance remain extremely strong," Senard told reporters after a board meeting - citing the mounting investment demands of new vehicle technologies. "It is our compulsory duty to go forward together." Ghosn's exit also marks a clear end to one of the auto industry's most feted careers, two decades after he was despatched by former Renault boss Louis Schweitzer to rescue newly acquired Nissan from near-bankruptcy — a feat he pulled off in two years. After 14 years as Renault CEO and a decade as chairman, Ghosn formally resigned from both roles on the eve of the board meeting. Ghosn's arrest and indictment for financial misconduct has strained the Renault-Nissan relationship, threatening the future of the industrial partnership he transformed into a global carmaking giant over two decades. For two months, the tensions deepened as Renault and the French government stuck by Ghosn despite the revelation he had arranged to be paid tens of millions of dollars in additional income, unbeknownst to shareholders. Ghosn has been charged with failing to disclose more than $80 million in additional compensation for 2010-18 that he had agreed to be paid later. Nissan director Greg Kelly and the Japanese company itself have also been indicted. Both men deny the deferred pay was illegal or required disclosure, while not contesting the agreements' existence. Ghosn has denied a separate breach of trust charge over personal investment losses he temporarily transferred to Nissan in 2008. Ghosn had agreed in recent days to step down from Renault, Reuters reported on Tuesday — but only after the French government, Renault's biggest shareholder, called for leadership change and his bail requests were rejected.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Nissan's Kelly examined at Japanese hospital after securing bail

TOKYO — Nissan director Greg Kelly was being examined in a hospital on Wednesday, a source said, a day after he was released on bail from a Tokyo jail where his former boss Carlos Ghosn is still being detained. Kelly, an American who was released late on Christmas Day after more than a month in detention, has been charged with conspiring to under-report Ghosn's income. He posted bail of 70 million yen ($640,000). Their Nov. 19 arrests jolted the global car industry and has strained Nissan's alliance with French car maker Renault SA. Nissan's board last month fired Ghosn as chairman and Kelly as representative director, although both men technically still remain board members who can only be removed by shareholders. Kelly suffers from spinal stenosis, causing numbness, tingling and shooting pain in his extremities, according to a video message last week from his wife, Dee Kelly, appealing for his release. The condition compresses or pinches the spinal cord. Those symptoms worsened during his five weeks in the Tokyo Detention Center, his wife said, citing Kelly's lawyer. Kelly was scheduled to have surgery on Dec. 7 in Nashville, Tennessee, but flew to Japan last month after being told that he was needed in person at a board meeting, Dee Kelly said in the video. Kelly was arrested soon after his arrival. Under the conditions of his bail, Kelly is barred from traveling overseas and his residence must be restricted to a designated place, the Tokyo District Court said. Lawyers say that travel exceptions can be made on a case-by-case basis. Kelly walked out of the detention center around 10:45 pm (1345 GMT) Thursday night wearing a light-colored jacket and was whisked away in a black taxi. Japanese media showed footage of Kelly entering a hospital around midnight. After his release from detention, Kelly issued a statement through his lawyer saying he had not falsified any documents and looked forward to restoring his honor in court. "I believe my innocence will be revealed in the trial," he said. Kelly also said in the statement he wanted to see a doctor immediately and get the appropriate treatment or operation originally scheduled for early December. The office of his lawyer, Yoichi Kitamura, did not respond to requests for comment. Ghosn was re-arrested on Friday based on suspicions that around October 2008 he shifted personal trades to Nissan to make it responsible for 1.85 billion yen ($16.6 million) in appraisal losses, prosecutors said.