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Report: Renault, Nissan quietly winding down alliance projects

Insiders claim the alliance partners are dismantling joint-project departments in the months following Carlos Ghosn's arrest.

Renault, Nissan, and Mitsubishi may already be unwinding internal collaborative projects amid persistent reports that the alliance has begun to fracture following Carlos Ghosn's arrest earlier this year.

Citing multiple current and former employees, the Financial Times claims the Ghosn's "Office of the CEO" was dissolved months ago after a corporate governance committee concluded that the leadership structure contributed to oversight problems.

Some of the departments tasked with managing joint-development projects and other collaborative initiatives are said to have been idled or operating with reduced staff allocations.

"It is fair to say the relationship is as bad as we have seen in 20 years, and that is having an impact on joint operations," one source told FT.

The claims appear to corroborate speculation that the relationship between Renault and Nissan has become increasingly troubled in the months since Ghosn was arrested for financial misconduct. Some reports claim Ghosn's arrest was essentially a strong-armed ouster aided by the Japanese government to prevent the executive from moving forward with a plan to formally merge the companies.

The apparent discord was recently illuminated when Renault entered merger talks with Fiat Chrysler Automobiles. The move was interpreted as a potential strategy that could have given the French automaker more leverage in pursuing its merger with Nissan. The proposed merger remains at an impasse, however.

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