Renault and Nissan reach agreement on boardroom seats

Nissan will grant Renault’s leaders seats on key committees of its board, signaling an end to a dispute that has poisoned relations between the two automakers, Automotive News reads.

In a statement, Nissan said it will give Renault CEO Thierry Bollore a seat on its board’s audit committee and Renault Chairman Jean-Dominique Senard a seat on its nomination committee. Both are key positions at the heart of decision making.

The concessions from Nissan to let Bollore on the audit committee came with strings attached. Nissan is placing restrictions on Bollore’s role in areas where the two companies might have a conflict of interest, people familiar with the matter said.

The move comes after demands by Senard for representation on the committees in return for approving Nissan’s overhauled governance structure plunged the two-decade-old partnership into crisis.

Yasushi Kimura, an adviser to oil company JXTG Holdings will chair Nissan’s board and Senard will become the vice-chair. The nomination committee will be chaired by Masakazu Toyoda, the lead independent outside director.

Renault now expects to support the resolutions at Nissan’s annual meeting on June 25, people familiar with the matter said, asking not to be identified discussing the negotiations.

The partnership between Renault and Nissan has been strained since former leader Carlos Ghosn was arrested for suspected financial misconduct last year. Ghosn denies wrongdoing.

“The agreement reached on Renault’s presence in Nissan’s new governance confirms the spirit of dialogue and mutual respect that exists within the alliance,” Renault said in a statement.