Renault, Nissan prepare to turn page as heat rises on Ghosn

French and Japanese officials scrambled Tuesday to reassure investors about the stability of the Nissan-Renault-Mitsubishi alliance, after fresh claims emerged following the arrest of auto industry titan Carlos Ghosn on financial misconduct charges.

Nissan and Mitsubishi shares plunged Tuesday after Ghosn, chairman at both carmakers, was arrested in Japan for allegedly failing to report all his Nissan pay and for inappropriate use of corporate assets.

Ghosn has not been heard from since his arrest, though sources confirmed he was being held by Tokyo prosecutors.

Nissan's board has already said it will seek to oust the architect of the three-way alliance, which combined sells more cars worldwide than any other automaker.

Sources told AFP in France that Renault too intends to strip Ghosn of his CEO title and hand over control to his number two, Thierry Bollore, in tandem with the board's lead independent director.

In a statement Tuesday, French Finance Minister Bruno Le Maire and his Japanese counterpart Hiroshige Seko reaffirmed their "strong support" for "one of the greatest symbols of Franco-Japanese industrial cooperation."
Andre Spice, a business professor at City University of London, told AFP that "with him out of the picture, old differences between the companies could come to fore. The alliance could fall apart."