Monday, April 11, 2011

AUTOMOTIVE: The audit report reveals a "serious failings" in Renault

AFP - The audit report made by Renault after the incredible false espionage case that shook the band edge of "serious failings" in the management and appoints officials, said Monday the ministers of Economy and Industry waiting for "lessons" are drawn.

"The reports show there were obvious shortcomings, which include two things: the review of governance rules and sanctions," said Christine Lagarde on France Inter.

"I have instructed state officials to the Board of Directors of Renault support the recommendations of the audit committee," she said.

The French manufacturer, 15% of capital in the hands of the state is holding on Monday its board of governors who must review the audit report on the genesis of this false espionage.

According to the Minister of Industry, Eric Besson, "the audit report said 'there were serious shortcomings that must learn +, and we actually believe that we must learn from these serious malfunctions".

He said on LCI that those responsible for this fiasco in the group "are listed in the audit report," while refusing to reveal their identity.

About the possible resignation of CEO of Renault, Carlos Ghosn, Mr. Besson said he was returning to the board of directors of the group "to learn".For its part, the group's number two Patrick Pelata had offered his resignation which was refused by Mr. Ghosn.

"There will be a board, and I understand that the president of Renault wants to learn from this case by proposing a number of initiatives and reorganizations within its management," he said.

The case "shows a management system and a way to govern who can no longer be perpetuated," he firmly told.

According to the Journal du Dimanche, two other officials of Renault, Christian Husson, legal director, Jean-Yves Coudriou, Chief executives are also on trial.

Mr.Besson, however, refused to comment on the amount of compensation claimed by the three group executives falsely accused of espionage before being dismissed, and according to the weekly Marianne totaled over 11 million euros in total .

"I do not know. It is the Board of Directors today I think the talk", said only Mr. Besson.

He however felt that it was the company to pay these claims, even if "it would be logical" that its leaders are contributing, "he added, recalling that Mr.Ghosn pledged to give up a part of his remuneration as a result of this case.

But according to Minister of Industry, "it can not be astronomical sums that are damaging to the company itself," even if we consider the "moral damage" in this case.

According to Marianne, Michel Balthazar, Rochette and Bertrand Matthieu Tenenbaum demand respectively 3.2 million, 3.4 million and 2.4 million euros in damages for pain and suffering.

These amounts, together with the various redundancy, would climb the addition of over 11 million euros, according to calculations of the weekly.