Nissan directors meet to pick chairman to succeed Carlos Ghosn

The independent directors have already said they will choose an existing board member as the next chairman. Nissan's board is due to vote on their choice Dec 17.
The independent directors have already said they will choose an existing board member as the next chairman. Nissan's board is due to vote on their choice Dec 17.PHOTO: REUTERS

TOKYO (BLOOMBERG) - Nissan Motor's independent board members meet on Tuesday (Dec 4) to select Carlos Ghosn's successor as chairman.

Their choice to replace the ousted car titan, who sits in a Japanese jail, will indicate the direction the automaker's alliance with Renault SA will take.

The most likely successors fall on each end of the spectrum: Chief executive officer Hiroto Saikawa, who has emerged as a driving force behind the investigation into Ghosn's financial reporting, and Toshiyuki Shiga, a former Ghosn confidant, people familiar with the situation have said.

The independent directors have already said they will choose an existing board member as the next chairman. Nissan's board is due to vote on their choice Dec 17.

At stake is the direction of the world's biggest car alliance between Nissan, Renault and Mitsubishi Motors, as differences surface among the companies that Ghosn's leadership held together.

The embattled executive, who was arrested on Nov 19 in Tokyo on allegations by Nissan of under-reporting his income and misusing company money for personal use, will likely be re-arrested next week as prosecutors add a fresh claim, people familiar with the investigation said.

Saikawa's ascendance to the position of chairman would solidify his power at Nissan, which wants to push for a more equitable partnership with Renault in their alliance after Ghosn's ouster.

 
 
 

The balance of power at Nissan is now tilted towards Saikawa, who has turned from a former Ghosn protege into one of the most vocal critics of his alleged wrongdoing.

Shiga's selection would likely result in more collective management of Nissan.

Renault is the largest shareholder of Nissan and has voting rights in the company. Nissan is the second-largest shareholder in the French company, but has no power to vote. That has created an imbalance which has worsened over the years with Nissan's success in markets like China and the US, where the French carmaker is absent.

Nissan has rejected external chairman candidates suggested by Renault, said the people, who asked not to be identified discussing private matters.

A Nissan representative declined to comment on the directors' meeting and the chairman candidates.

Ghosn was dismissed as chairman of Nissan on Nov 22 in a stunning downfall for the jet-setting executive. While Mitsubishi also ousted Ghosn, Renault refused to remove the 64-year-old as CEO, and instead named an interim leader.