All eyes were on the Renault-Nissan-Mitsubishi Alliance this week after automotive titan Carlos Ghosn was arrested for alleged financial misconduct and fired from his job as Board Chairman at Nissan. Nicknamed “Le-Cost-Killer”, Ghosn turned Nissan around when the company approached bankruptcy by orchestrating strategic investments by Groupe Renault in the Japanese OEM, which resulted in the creation of the Renault-Nissan Alliance that Mitsubishi later joined.
After Ghosn’s arrest, Renault stopped short of firing him, appointed an interim CEO and requested that Nissan hand over the findings of the internal investigation that led to Ghosn’s detainment. In the process, share prices of Nissan, Renault and Mitsubishi have dipped. Nissan demands that the share structure of its alliance with Renault is revised in order to develop a more equal relationship with its French ally.
Find out more about the impact that Ghosn’s arrest had on the markets and on the world’s largest automotive alliance here. Ghosn’s detainment and growing tensions between Renault and Nissan have laid the groundwork for speculation about an inside job to prevent a full merger. Check it out!
In Mexico, the Bajio region stole the automotive spotlight. Honda’s Celaya plant has resumed full operations after floods in June decommissioned the assembly facility of HR-V and Fit. In the downtime, the company failed to manufacture around 75,000 vehicles with an opportunity cost of US$363 million and its productivity dropped 33 percent in the first 10 months of 2018 compared to the same period of last year. However, no jobs were lost and the company plans to build a wall that prevents future floods.
Rev your engine. This is the week in automotive!
Top Exec’s Detention Exposes Auto-Alliance Tensions
Carlos Ghosn, former Chairman of Nissan, Renault and Mitsubishi, was detained in Japan for alleged financial misconduct. He is accused of underreporting earnings and personal use of company assets.
Nissan separated Ghosn from his position as Chairman after an emergency meeting of the company’s board. Groupe Renault’s board urged Nissan to delay Ghosn’s redundancy and decided to name an interim replacement for him. Renault requested that Nissan hands over more details on the investigation that led to Ghosn’s arrest.
Nissan will demand that the share structure of the Renault-Nissan alliance is revised in order to have a more equal footing with its French ally Renault.
The Bajio Region’s Automotive Momentum
After close to five months of being inoperative due to flood damage, Honda’s Celaya plant has returned to assembling Fit and HR-V in Mexico.
Cooperation between governments of Queretaro, Guanajuato, Aguascalientes and San Luis Potosi will detonate manufacturing industry in the Bajio region.
Supply of steel and aluminum is the largest challenge that the Bajio region’s automotive industry faces to comply with USMCA’s rules of origin.
Hitachi Cable plans to produce electric components for braking systems in Queretaro that cater for the needs of the North American market.
BMW México is getting ready to meet the new rules of origin laid out by USMCA. The OEM works toward the installation of suppliers that help it reach 75 percent of regional content.
Mobility & Electrification
DiDi Chuxing has started operations in Mexico City. The Chinese ride-hailing company plans to eventually enter Chihuahua, Puebla, Tijuana, Merida and Mexicali.