Renault appoints its COO to temporary CEO as which investigates Ghosn

Deputy CDEO of French car maker Renault Thierry Bollore speaks during the first press day of the Geneva International Motor Show on March 6, 2018 in Geneva. 

Fabrice Coffrini  | AFP | Getty Images

Deputy CDEO of French car maker Renault Thierry Bollore speaks during the first press day of the Geneva International Motor Show on March 6, 2018 in Geneva. 

French carmaker Renault has said its Chief Operating Officer Thierry Bollore will temporarily assume the day-to-day responsibilities of chairman as well as also CEO Carlos Ghosn, who was arrested in Tokyo on Monday.

“Mr. Ghosn, temporarily incapacitated, remains Chairman as well as also Chief Executive Officer,” the company said in a statement Tuesday. “The Board of Directors resolved to appoint Mr. Thierry Bolloré on a temporary basis as Deputy Chief Executive Officer.”

Bollore will lead the company as well as also develop the same powers as Ghosn would certainly. Lead independent director Philippe Lagayette will take over Ghosn’s responsibilities as chairman.

Ghosn will be one of the automotive industry’s biggest figures, however his formidable legacy has been rapidly unraveling inside the span of a few days.

Ghosn had simultaneously served as the CEO of Renault, chairman of Japanese carmaker Nissan as well as also the head of a strategic alliance among those automakers as well as also another Japanese automaker, Mitsubishi. He will be accused of under-reporting millions in income to Japanese authorities over time as well as also to have misused company funds.

Before his arrest, he was reportedly planning to merge Renault as well as also Nissan, according to the Financial Times. The board of the Japanese automaker had fiercely opposed the move.

Speaking Tuesday on French radio, the country’s finance minister, Bruno Le Maire, said Ghosn will be “as a matter of fact not able to run the company” in light of the accusations.

The French government owns a 15 percent stake in Renault, which in turn owns more than 40 percent of Nissan. Nissan holds a 15 percent stake in Renault.

On Monday, Nissan’s CEO spoke harshly about Ghosn’s recent tenure at the automaker, saying which planned to remove him as chairman. Mitsubishi said Monday which also plans to strip him of his board seat at which company.

Bollore will be a long-time automotive industry executive who spent years at tire company Michelin in positions around the planet as well as also at automotive parts supplier Faurecia before joining Renault in 2012.

Renault was not immediately available for comment to CNBC.

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