Renault Names Ghosn New CEO, Vows To Cooperate With Nissan CEO Ghosn

PARIS, April 29, 2005; Reuters reported that incoming Renault Chief Executive Carlos Ghosn pledged to increase cooperation with the French car maker's Japanese partner Nissan at a shareholder meeting on Friday.

Ghosn, who already heads Nissan, which he rescued from bankruptcy in 1999, said he would develop synergies between the car makers while respecting their separate identities.

"The potential for the alliance remains immense," Ghosn told Renault's annual shareholder meeting. Ghosn was due to take over as Renault CEO from Louis Schweitzer after the meeting.

Ghosn will retain his role as Nissan boss while Schweitzer will stay on as Renault chairman. Renault owns 44 percent of Nissan, which is Japan's number two auto maker.

Ghosn said his first step would be to re-acquaint himself with the car maker he left in 1999 to go to Japan.

"In the coming months I plan to develop a broad understanding of the company," he said, adding he plans to meet teams from across the company and to understand Renault's strengths and weaknesses, opportunities and risks.

As expected, Ghosn told shareholders he would not make any immediate changes at Renault.

"There will be no quick changes in the coming weeks. I have come with no fixed ideas. Renault's a company in good health so there is no great urgency," he said, adding he would focus on targets and strategy after an initial period of diagnosis.

Ghosn pledged to shareholders to set clear quantifiable targets with clear timeframes, to act with transparency and to take personal responsibility for the company's results.

Schweitzer, who has held the post of chairman and CEO for nearly 13 years, said of Ghosn: "He will choose his own management methods and make his own strategic decisions, set new goals and seize new opportunities. He will be the sole leader of the company."

Schweitzer hands over the reins of a car firm in good health -- Renault posted record profits in 2004 and its model line-up, with its distinctive quirky design, has blown competition out of the water in recent years.

But Renault is not immune to the tough market conditions that are battering the auto sector. It posted an unexpected drop in sales in the first quarter of 2005, with particularly worrying declines in markets such as Turkey, which were engines of growth in 2004.

Ghosn's challenge will be to guard Renault against the bruising effects of the market, while also doing the same for Nissan. Both carmakers have warned that 2005 is likely to be a tough year.

Asked how it compared with the challenge of rescuing Nissan, Ghosn told reporters after the shareholder meeting: "It is as difficult and it is different. In the auto industry success doesn't last long and it is never guaranteed. We need to earn our success every day."