Business

Renault asks Carlos Ghosn to stay on as chief executive

Carlos Ghosn Image copyright Getty Images
Image caption Carlos Ghosn has held the top job at Renault since 2005

French car giant Renault has asked Carlos Ghosn to stay on as chief executive for a further four years.

There had been some speculation that he would relinquish his role as head of the firm - a position he has held since 2005.

Shareholders will vote on Mr Ghosn's re-appointment at a meeting in June.

If approved, he would also remain on as head of the Japanese-French alliance between Renault, Nissan and Mitsubishi.

The newly-formed tie up claimed it was the world's biggest automotive group, after it sold 10.61 million cars in 2017.

Renault's board said it wanted Mr Ghosn to "take decisive steps to make the alliance irreversible", as well as drive Renault's 2022 growth plans, and shore up its succession plans.

Mr Ghosn has also agreed to cut his salary by about 30%, Renault said. In 2016, shareholders including the French government had voted against his pay package.

Record-breaking year

On Wednesday, the firm also said Thierry Bolloré had been appointed as Renault's chief operating officer - a position he will take up next week.

Mr Bolloré was already a senior Renault executive, and is now expected to eventually succeed Mr Ghosn.

Renault, which has been making cars for more than a century, created an alliance with Nissan in 1999.

The Renault-Nissan-Mitsubishi alliance adopted its current name in September 2017, about a year after Nissan took a controlling interest in Mitsubishi.

On Friday, Renault reported record sales and profits for 2017 on Friday, bolstering Mr Ghosn's position.

Its operating profit rose 17.4% to an all-time high of €3.85bn (£3.42bn), while group revenue jumped nearly 15% to €58.77bn on the back of buoyant European demand.

Last month, Renault said global vehicle deliveries rose 8.5% in 2017, with about a third of the growth coming from Europe, helped by its new Koleos mid-sized SUV and recently revamped Megane range.

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