L’Affaire Renault reaches a suicidal nadir

October 12, 2012

Ah, the cynicism of the modern corporation. Remember all those years ago when Jo Moore, spin doctor to Stephen Byers, Department of Transport, Local Government and Regions secretary, emailed her boss those immortal words, referring to 9/11: “It’s now a very good day to get out anything we want to bury.”?

Well, now the French are having a similar moment of national revulsion at what’s called “L’Affaire Renault”. Readers of this blog will recall my post detailing Publicis Groupe CEO Maurice Lévy’s grubby attempt – successful at first – to stitch up Renault director of customer marketing Philippe Clogenson when the latter had the temerity to consider placing his business outside the Publicis empire. Clogenson was one of four senior Renault executives summarily fired (Clogenson for corruption, the other three for alleged industrial espionage) at the beginning of 2011 – only to be rehabilitated in the most humiliating way possible for Renault boss Carlos Ghosn and his number two, who subsequently had to resign.

And, guess what? The judicial investigation into the Renault scandal, now consuming many hours of M. Ghosn’s time, has turned up a new shocker. According to verified documents published in Le Parisien today, the car manufacturer had prepared draft statements for release in the eventuality that any of the executives attempted or committed suicide. The draft document, prepared by then director of communications Frédérique Le Grèves, read, “The entire company is profoundly shaken by the seriousness of this act. Our thoughts are with the family of M. XXX.” Fill in, as appropriate.

Contacted by Le Parisien, Le Grèves – now Ghosn’s chief of staff – managed to dig herself into a still deeper hole by insisting that the draft communiqué was “pure and simple anticipation, just a form of words in case we needed to respond to journalists.” The rehabilitated executives must have been delighted with that touch. But the broader point, which seems to have escaped Renault’s senior management, is the French public is aghast at the cynicism of it all. Le Grèves simply can’t understand what all the hullabaloo is about. I wonder how much longer she will remain Le Ghosn’s chief of staff.

The examining magistrate, Hervé Robert, took up half a day of Ghosn’s valuable time during his last hearing – and has threatened a 10-hour marathon during his next. I’m sure Lévy can barely wait for the judge’s attention to be turned to himself.

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Lévy accused of falsely denouncing ‘corrupt’ Renault marketing executive

August 25, 2012

In a new twist to an old corruption scandal that engulfed Renault two years ago, Maurice Lévy, head of Publicis Groupe, has been accused of bringing about the unfair dismissal of a senior marketing executive at the French car company.

To recap, three senior Renault executives were dismissed at the beginning of 2011 after they were accused – falsely it later turned out – of passing top-secret electric-car technology to the Chinese. At the same time Philippe Clogenson, director of customer marketing, was fired after he was found to have accepted corrupt payment from a supplier.

Later, Renault boss Carlos Ghosn was forced into an embarrassing climbdown and his second-in-command resigned after it emerged the allegations that had brought down all four executives were false.

Clogenson was subsequently reinstated and compensated for wrongful dismissal (as were the other three executives).

It now emerges that the man who accused him was none other than Lévy himself. That at least is the substance of a witness statement from Marc Tixador, a former policeman now himself the subject of an investigation, who was hired by Renault to conduct an internal inquiry into the allegations.

According to Tixador: “In May 2009, we were put onto the Philippe Clogenson case by his direct superior, Stephen Norman. He, in turn, had been tipped off by M.Lévy, boss of Publicis, that a Renault employee whose first name was “Philippe” and who, more specifically, was in charge of marketing, had been taking bribes from certain suppliers. Our internal inquiry and discussions with Publicis enabled us to establish that the suspect must have been Philippe Clogenson.”

Lévy has been quick to play down his own role. While not denying Tixador’s statement, he had this to tell the French national newspaper Libération: “Some information came my way, but no surname was mentioned. I purely and simply passed that information to Renault, with infinite precaution. I didn’t denounce M. Clogenson or anyone else. I didn’t know the surname and I didn’t try to find it out either. It was the internal security team at Renault who tracked it down and made the deduction.”

This, to say the least, is a lame mitigation of his conduct. As Libération sarcastically points out, the very mention of a Philippe working in marketing would have enormously simplified the task of the internal investigation. But the newspaper also casts doubt upon the authenticity of Lévy’s account. It says that Tixador’s colleague, an ex-military type called Dominique Gevrey (himself under investigation at one point), gave a much more explicit version of Lévy’s role: “Lévy telephoned Tixador directly, who put the speaker-phone on in my presence.” Lévy then (according to Libération’s account) proceeded to badmouth Clogenson (accablant Clogenson de tous les maux). Gevrey claimed that Norman played only a minor part in the investigation, passing on the information that he had been told Clogenson and a supplier were involved in financial irregularities – without at any point specifying who the source of these accusations was.

What remains to be unravelled is Lévy’s motive for tipping off the investigation team about Clogenson. Libération, which broke the story yesterday, speculates that it could have something to do with Clogenson giving business to digital agency Fullsix – a competitor to Publicis, which is the dominant Renault agency.


Audi of America boss Johan de Nysschen defects to Nissan’s Infiniti

June 5, 2012

Sometimes it’s easy to forget there are other things going on in the world of autos than Joel Ewanick shaking up General Motors’ marketing plan.

Such as Audi veteran Johan de Nysschen quitting the marque he has championed for 19 years and heading for rival luxury brand Infiniti.

De Nysschen’s decision to quit Audi of America, which he has steered with great success for 7 years, created considerable industry speculation last week. Putsched or moving on – and why? It now turns out he will be relocating to Hong Kong where, as a senior vice-president of Nissan – which owns Infiniti, he will spearhead an attempted global revival of the trailing luxury car brand.

De Nysschen’s departure from Audi was a surprise, not least because the North American unit has been performing so well recently. Annual sales exceeded 100,000 units for the first time two years ago; this year, Audi’s share of the US luxury car market has risen from 5.3% to 10%. In May alone, Audi’s US sales climbed 15% to 52,494 cars.

But perhaps that’s the point: de Nysschen likes a challenge. And with Infiniti he’s certainly getting one.

In the US, Infiniti is the brand that most closely rivals Audi in sales performance. During 2010, Infiniti narrowly outsold Audi – 103,411 vehicles compared with 101,629. But there the resemblance ends. Last year, Infiniti trailed Audi at 98,461 to 117,561. The immediate reason was production problems stemming from the Japanese earthquake and tsunami. The more strategic issue is an ageing and increasingly unimpressive product line.

Globally Infiniti sales, at about 200,000, are a fraction of VW-owned Audi’s 1.3 million. Infiniti has been striving to catch up, with a technology deal involving Mercedes-Benz and the promise of an extended vehicle line-up of 10, in place of the existing 8.

Clearly Nissan boss Carlos Ghosn has been making all sorts of promises to de Nysschen about imminently improved product performance. Without that, it seems unlikely that Infiniti will be able to charge anything like the price of a BMW, Mercedes or Audi any time soon.

The establishment of a new global Infiniti headquarters in Hong Kong – doors opened last month – is an interesting declaration of intent in itself.

Infiniti was once exclusive to the USA, but is now being marketed in 46 countries. Significantly, China is Infiniti’s second largest market after the USA.


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