Carlos Ghosn: Nissan and Shock Arrest

carlos ghosn: News of the talks comes as Nissan was set to report on Tuesday its lowest annual operating profit in a decade, hurt by slumping U.S. sales, aging models and a product cycle that's out of sync, according to The Japan Times. The merger proposal came after the most tumultuous few months in the companies' two-decade partnership, which was shaken by the shock arrest of the alliance's chief architect and former chairman, Carlos Ghosn. Talks have been ongoing since Renault Chairman Jean-Dominique Senard first made an informal proposal to Nissan Chief Executive Officer Hiroto Saikawa in April, the source said, asking not to be identified because the discussions aren't public. ; Nissan rebuffed the idea then and has continued to oppose it, the source said. Nissan declined to comment on the discussions. A merger under a holding company won't help solve Nissan's current operational issues, such as high fixed-costs, unprofitable models and flawed Datsun and Infiniti brand strategies, the source said, adding that a new structure will cause delays in addressing these issues because of logistical and regulatory hurdles. Representatives for Renault didn't immediately respond to requests for comment. (news.financializer.com). As reported in the news.