Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Renault dysfunctional management style must change

PARIS, Apr 11 – French ministers said Monday it was up to Renault to decide if its chief executive stays on after an industrial espionage scandal but that the carmaker\’s "dysfunctional" management style had to change.

Their comments came as the partly state-owned firm was about to hold an extraordinary board meeting later Monday to examine an audit committee\’s report on the scandal that centred on wrongful accusations of spying.

"The audit report shows that there were serious dysfunctions and that lessons must be learned," Industry Minister Eric Besson told LCI news channel, without providing details of the report that has not been made public.

The scandal "reveals a management system and a governance style that cannot continue," he said, adding that it was up to Renault\’s board to decide if chief executive Carlos Ghosn should resign.

Ghosn will present a reorganization project to the board during Monday\’s meeting, Besson said.

A report Sunday in French newspaper Journal Du Dimanche said Renault\’s chief operating officer Patrick Pelata, legal affairs chief Christian Husson and its human resources and security chiefs may resign after Monday\’s meeting.

Finance Minister Christine Lagarde also said that the report showed that the company\’s management style was "dysfunctional" and revealed the need both for a "revision of the governance rules and for sanctions."

Lagarde told France Inter radio she had instructed state representatives on the board to support the recommendations of the audit report. The French state owns 15 percent of the company.

The French car giant sacked three managers in January, saying publicly it had proof they had been selling secrets on the electric technology which is expected to change the car industry.

Advertisement. Scroll to continue reading.

The French government branded the affair "economic warfare" and some pointed the finger at China, drawing an angry denial from Beijing.

But last month, the firm apologised to the managers after it emerged police found no trace of bank accounts the accused men were alleged to have held and that the source of the spying allegations may have been a fraudster.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...