Renault Chairman Jean-Dominique Senard pledged to repair the relationship with partner Nissan at the company’s shareholder meeting, saying that the trust between the two car makers can be restored.
“The priority is to restore a strong alliance,” Senard said at Renault’s annual meeting, adding that both the French car maker and Nissan will need time, patience and effort to make it happen, Bloomberg reports.
Senard spoke to investors for the first time since being appointed at the helm of Renault, following the arrest of Carlos Ghosn in Japan on charges of financial misconduct.
The executive was brought in by the French government, who also happens to be Renault’s largest shareholder, to fix the issues between the two car makers, but it appears that he did the exact opposite, as he further rocked the Alliance by pushing for a merger with Nissan and failing at it, and then doing the same with FCA.
“I am disappointed,” Senard said of the failure to strike a deal with FCA, adding that the plan was to sign a non-binding agreement with them last week. Renault’s Chairman blamed the French government for the collapse of talks with FCA, adding that the merger would lead to synergies rarely seen in the industry.
He added that the fallout from the Ghosn scandal “left the alliance more damaged than what was initially apparent,” adding that the Alliance “is making a new beginning that needs to be confirmed.”
Nissan has refused to examine Senard’s merger proposal, and Renault responded by blocking the proposed governance changes at Nissan, demanding more seats at the Japanese car maker’s committees.
Senard told shareholders that he would support Nissan’s governance reform if they allowed Renault’s two representatives on Nissan’s board to be members of the committees.