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. ( As reported in the news.

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