Renault Head Ghosn Pledges to 'Restore Trust' After Spy Scandal
Renault SA Chief Executive Officer Carlos Ghosn pledged to “restore trust” in the French carmaker following the firing of three executives falsely accused of corporate spying.
Chief Operating Officer Patrick Pelata, who is stepping down over the scandal once a replacement is found, remains an “asset” to the Renault-Nissan corporate alliance, Ghosn said today at the manufacturer’s annual shareholder meeting in Paris, reported Bloomberg.
Renault is missing a permanent operational leader after Pelata resigned April 11 over his role in an internal espionage investigation that led to the executives’ wrongful firings in January. The company, based in the Paris suburb of Boulogne- Billancourt, is seeking to make its main carmaking business consistently profitable with targets unveiled eight weeks before Pelata’s exit was announced.
A successor will be chosen “within a timetable that is compatible with the smooth running of the company,” Marc Ladreit de Lacharriere, a board member who leads the automaker’s governance committee, told investors today.
Ghosn, who splits his time between Renault and 43.4 percent-owned Japanese affiliate Nissan Motor Co., handed day- to-day operational control of the French automaker to the COO in 2008. The French automaker has “several possible internal candidates” to replace Pelata, Ghosn said in an April 13 interview with Les Echos newspaper, without identifying them. Pelata will take a yet-to-be-defined role at the alliance with Nissan, Renault said when announcing his departure.
Renault is targeting an operating margin exceeding 5 percent of revenue by 2013, with annual deliveries of more than 3 million vehicles and 2 billion euros ($3 billion) of cumulative free cash flow. The goals, issued on Feb. 10, compare with 2.63 million deliveries and a 2.8 percent margin last year and replace targets missed in 2009, when Ghosn pledged to increase profitability to 6 percent of revenue and volume to 3.33 million autos.
Renault rose as much as 0.9 percent to 41.06 euros and was up 0.8 percent as of 4:18 p.m. in Paris trading. The stock has fallen 5.7 percent this year, the worst performance on the eight-member Bloomberg Europe Autos Index. French competitor PSA Peugeot Citroen has gained 6.9 percent in the period. Renault is 15 percent-owned by France’s government.
More Industry

First-Half Dealership Deals Up
Buy-sell activity shows that acquirers are looking for value and scale as many retailers seek to leave an increasingly competitive and complex market, Kerrigan Advisors reports.
Read More →
Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →