After the Carlos Ghosn affair : Mitsubishi may invest in Renault

It made headlines that the Japanese company Mitsubishi may invest in Renault as part of the scenarios being discussed to strengthen the alliance between the French companies Renault and Nissan and Mitsubishi Motors Japan. One possible scenario is that Mitsubishi, which holds 20 percent of Mitsubishi Motors, may obtain a 10 percent stake in Renault.

Newspaper sources deliberated that this was one of the scenarios of many topics under discussion, which could also include restructuring plans including plant closures and new cost savings programs. One source said that nothing had been settled yet.

Mitsubishi Motors is Nissan's largest shareholder, although ties are deeper between the other two members of the alliance. Nissan owns 15 percent of Renault, while the latter owns 43 percent of Nissan. It is noteworthy that relations between Renault and Nissan worsened after the arrest in Japan of former coalition chief Carlos Ghosn in Japan in late 2018. He has since fled to Lebanon, where he has intensified his defense against accusations of financial misconduct and denied wrongdoing.

In the aftermath, Renault and Nissan have since cleared the surfaces of many managers associated with the Ghosn era, but the momentum for joint ventures has stopped. Both pledged to try to revitalize the alliance, as car makers face deteriorating demand in emerging markets and costly programs to build new models. The Corona virus crisis exacerbated the sector's problems as production ceased.