Law “Florange” Renault is resisting – The Republican Lorrain

Carlos Ghosn, CEO of Renault, convened a board of extraordinary administration on Thursday night to counter attempts by the state to weigh more on strategic choice of the manufacturer.

Subject standoff between the boss of Renault and the Minister of Economy, Emmanuel Macron: the “Florange” law that goes very badly at Renault. This law is supposed to give more power to the state on industrial groups he is a shareholder, including through double voting rights for investors who keep their participation over two consecutive years in the business. Including the state, of course. However, it states that the Board of Directors of the companies concerned must give its opinion on the double voting rights

And that’s the rub. Renault’s Board of Directors has never hidden his reluctance to give the French state power that would place him above Nissan, the Japanese partner of the national manufacturer.

Ghosn against attack

To succeed case Bercy bought 8 April 4.7% of Renault’s capital, bringing the participation of the French State to nearly 20% while 15% held by far. This blow scholarship was hardly appreciated Billancourt and attack against Carlos Ghosn has been meteoric. Not only has he got his board’s refusal of double voting – forcing Emmanuel Macron to go into force, which will not be easy – but he made a motion claiming that “the balance between the two main Renault shareholders (the state and Nissan) is maintained at the next General Assembly or restored thereafter. “

Emmanuel Macron has made concessions before the holding of the extraordinary sales. He said Thursday afternoon that the state would sell 4.7% stake acquired in early April at the end of the general meeting of the manufacturer planned on April 30. And promised that “the balance of the alliance are and will be fully safeguarded by the French State.”

A favorable balance Nissan

This is called a surrender to a higher power in numbers. Carlos Ghosn got in his standoff support noticed the new CEO of Total, Patrick Pouyanné and even if Vivendi agreed yesterday to double voting rights, this is a blow to the New Colbertist government strategy.

Poking that might not stop there. When Renault took a stake in Nissan in 1999, the Japanese was almost bankrupt and it is the French manufacturer who pulled out of the rut. Today, the situation was reversed: Nissan sells almost twice as many cars as Renault and gives off a much higher result. The French State has failed to change the balance of forces in its favor. It is feared that Nissan will succeed on its side. And it’s not Carlos Ghosn should oppose it because it is both CEO of Renault and Nissan, with a salary of 7.6 million euros at Nissan and 7.2 million at Renault.