Renault SA chief executive Carlos Ghosn turned down proposal by Carlos Tavares that the chief operating officer play a broader role at the French carmaker, two people privy with the matter told Bloomberg. Under the proposal, Tavares would have his responsibilities expanded beyond purely operational decision-making, and would include oversight of human resources and legal matters, one of the people told Bloomberg.
Under the proposal, Tavares would still report to Ghosn. The sources disclosed to Bloomberg that instead of agreeing, Ghosn offered to let Tavares remain as COO at Renault.
Tavares has now exited from Renault and decided instead to seek a top post elsewhere. The French carmaker is now mulling whether to drop the position of COO completely, another person told Bloomberg.
Renault announced Tuesday that Tavares was leaving, with Ghosn temporarily taking over his duties. Renault also disclosed that it intends to decide soon on changes to the management organization "For the moment, there's no plan to replace Mr. Tavares," according to Laurent Smolnik, the FO union leader at Renault.
Tavares quit two weeks after he publicly said that he would like to become the top man at either General Motors or Ford Motor Co. Renault named Tavares as its COO two years ago after the former holder of the post, Patrick Pelata, had to resign following a failed spy scandal wherein three senior managers were wrongfully dismissed.
Tavares had been with Renault for 31 years, starting as a test-driving engineer. He worked his way up through the ranks and was tasked to run Nissan Motor Co.’s North American operations. [source: Bloomberg]