French President Emmanuel Macron and Japan's Prime Minister Shinzo Abe
French President Emmanuel Macron will discuss the Renault-Nissan alliance's future with Japan's prime minister at the G20 summit in Argentina on Friday, seeking to defuse a brewing diplomatic row over the balance of power inside the partnership.
The auto alliance is facing the biggest test of its 19-year existence after the ousting of Nissan Motor Co Chairman Carlos Ghosn, who was arrested last week for suspected financial misconduct.
Tokyo authorities on Friday approved the maximum 10-day extension of Ghosn's detention, Japanese media said. Prosecutors have to file charges against Ghosn, 64, by Dec. 10 or arrest him on suspicion of fresh crimes to keep him in custody.
Tokyo prosecutors declined to comment. Nissan did not immediately respond to a request for comment.
Tokyo authorities on Friday extended for another 10 days the detention of ousted Nissan Motor Co chairman Carlos Ghosn, who is being held in Tokyo's main detention centre after allegations against him of financial misconduct, Japanese media said.Ghosn has been held since Nov. 19 and Japanese authorities will now have to file charges by Dec. 10 or let him go. Japan-France spat over Nissan-Renault brews as Ghosn remains jailed
Tokyo authorities extend Ghosn's detention by 10 days
Ghosn's detention in Tokyo has left the Franco-Japanese auto alliance without its leader and main interlocutor with the French government, which owns 15 percent of Renault and wants to maintain the current alliance capital structure.
Renault controls Nissan through its 43.4 percent stake, while Nissan holds a reciprocal non-voting 15 percent stake in its French partner.
BUENOS AIRES MEETING
An official in the French presidency said Macron would discuss the alliance with Prime Minister Shinzo Abe at midday in Buenos Aires, but gave no further details.
Meeting in Paris last week, Japanese Industry Minister Hiroshige Seko and French Finance Minister Bruno Le Maire reaffirmed the two countries' support for the alliance.
A few days later, however, Le Maire said on French television that he and Seko had agreed that keeping the alliance's current capital structure was desirable - an agreement the Japanese minister denied making.
Japanese Prime Minister Shinzo Abe and French President Emmanuel Macron were arranging to meet on the sidelines of the G20 summit meeting, media said, amid signs of a brewing diplomatic feud over the power balance at the troubled Renault-Nissan alliance.The 19-year partnership between Renault SA and Nissan Motor Co is facing its biggest test to date after the arrest this month of its larger-than-life leader, Carlos Ghosn, for suspected financial misconduct.Ghosn, 64, has been detained in Tokyo since his Nov. 19 arrest, and prosecutors are widely expected to seek a maximum 10-day extension of his detention. If the court approves, authorities will have to file charges by Dec. 10 or arrest him on suspicion of fresh crimes to keep him in custody.Ghosn's detention in Tokyo has left the Franco-Japanese auto alliance without a leader and an advocate for the French government, which has said it wants to retain the current capital structure. Renault controls Nissan through its 43 percent stake, while Nissan holds a non-voting 15 percent stake in its partner.Japan central banker mum on alleged involvement in Ghosn transactionAfter meeting in Paris last week, Japanese Industry Minister Hiroshige Seko and French Finance and Economy Minister Bruno Le Maire reaffirmed the two countries' support for the alliance.A few days later, however, Le Maire said on French television that he and Seko agreed that keeping the alliance's current capital structure was desirable - an agreement the Japanese minister denied making.The Mainichi Shimbun daily reported on Friday that Seko had sent a rare letter of protest to Le Maire for the remarks. Officials at Japan's Ministry of Economy, Trade and Industry said they could not immediately comment on the reported letter.Ghosn suspected of shifting personal investment losses to NissanMACRON'S FIGHTGhosn's arrest, including for allegedly under-reporting his income, has triggered new attempts by Nissan to shake off what it considers Renault's outsized control of it, adding to problems at Macron's Elysee.As economy minister, Macron had masterminded the French government's surprise increase of its Renault stake in 2015, raising alarm bells inside Nissan that the Elysee was out to wield more influence over the Japanese company.Macron has requested a meeting with Abe at the G20 summit starting on Friday, the Mainichi reported. A Japanese government spokesman said nothing had been decided.Mitsubishi Motors ousts Ghosn as chairman, days after Nissan firingThe auto alliance, which also includes Japan's Mitsubishi Motors Corp, for its part "emphatically reiterated" its commitment to the partnership on Thursday after executives met in Amsterdam for the first time since Ghosn's arrest.A review of the capital structure was not discussed at the meeting, Mitsubishi Motors' CEO Osamu Masuko said. Former Nissan chairman Carlos Ghosn denies allegations against him
Japan-France spat over Nissan-Renault brews as Ghosn remains jailed
The Mainichi Shimbun daily reported on Friday that Seko had sent a rare letter of protest to Le Maire for the remarks.
Officials at Japan's Ministry of Economy, Trade and Industry said they could not immediately comment on the letter. A French finance ministry official said Le Maire's office had no comment.
Le Maire's apparent faux pas drew some criticism from Renault staff representatives concerned for the alliance.
"The government should know their place and stay there," said a union official at the French carmaker. "This kind of overreaching may be counter-productive."
Ghosn's arrest, including for allegedly under-reporting his income, has triggered new attempts by Nissan to shake off what it considers Renault's outsized control of it, adding to problems at Macron's Elysee.
As economy minister, Macron had masterminded the French government's surprise increase of its Renault stake in 2015, raising alarm bells inside Nissan that the Elysee was out to wield more influence over the Japanese company.
The auto alliance, which also includes Japan's Mitsubishi Motors Corp, for its part "emphatically reiterated" its commitment to the partnership on Thursday after executives met in Amsterdam for the first time since Ghosn's arrest.
A review of the capital structure was not discussed at the meeting, Mitsubishi Motors' CEO Osamu Masuko said.