Nissan, Renault heads hold meeting with Yosano.
The heads of Nissan Motor Co. and Renault SA of France, which announced a capital tie-up last month, met Monday with International Trade and Industry Minister Kaoru Yosano. Nissan President Yoshikazu Hanawa and Renault Chairman Louis Schweitzer are believed to have formally notified Yosano of the two companies' alliance, under which the French automaker is to take a 36.8% stake in the ailing Japanese company. The two are also believed to have asked Yosano for government assistance in promoting Nissan's rehabilitation. After the meeting, Hanawa told reporters that he asked Yosano for general support. Nissan, which has been suffering from sluggish performance both at home and abroad, decided on the capital tie-up to reduce its huge consolidated debt, which is estimated at more than 2 trillion yen. Nissan is expected to accelerate its restructuring program, which will include workforce cuts, under the leadership of Renault. The French automaker is expected to send an executive to Nissan as chief operating officer. Nissan and Renault will also cooperate in production and sales in worldwide markets.
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|Publication:||Japan Transportation Scan|
|Date:||May 3, 1999|
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