Renault's Senard, the 'Anti-Ghosn,' is a stabilizing force

PARIS — When Renault Group's board of directors and the French government sought a steady hand to right the ship after the shocking arrest of CEO Carlos Ghosn in November, one name rose to the top of the list: Jean-Dominique Senard, the soon-to-be-retiring CEO of Michelin.

Quickly nicknamed the "anti-Ghosn," the low-key Senard, now 66, was named chairman in January. He moved swiftly to repair relations with alliance partner Nissan, shuttling back and forth to Japan to meet with CEO Hiroto Saikawa, and repeatedly asserting that the Renault-Nissan alliance would not only survive, but thrive.

At the same time, however, Senard was also holding back-room talks with John Elkann, the scion of the Agnelli family that controls Fiat Chrysler Automobiles, about a possible tie-up with Renault — but not Nissan. If the merger goes through, he could become the CEO holding the purse strings over Jeep and Ram and other icons of Auburn Hills.

The secrecy of the negotiations and the boldness of the proposal — a 50-50 merger rather than a technology-sharing agreement, as some had speculated — are a testimony to Senard's discretion, as well as his willingness to consider creative new business combinations, supporters say.

"When he went to Renault, the benefit was that he was a respected figure," said Philippe Houchois, automotive analyst at Jefferies in London. "He was brought in to be a cool head." Another plus was his familiarity with Japan, home to Michelin's biggest competitor, Bridge-stone, Houchois said.

Senard's savoir-faire was on display last week in Tokyo, where he flew to persuade Nissan of the merits of the FCA-Renault merger. At first, the Japanese executives had many questions, he told Reuters, but by the end of their meeting the mood was positive, he said.

Even Saikawa, whom some Renault partisans accuse of orchestrating Ghosn's arrest to oust him from Nissan, seemed to be willing to give Senard the benefit of the doubt. After the meeting, he said he saw potential opportunities for the existing alliance in Fiat Chrysler's merger proposal, adding, "we don't consider this as a minus," Reuters reported.

Senard is also close with French President Emmanuel Macron, of whom he was an early supporter. It's a crucial connection, because the French government is the largest shareholder in Renault and must give its blessing to the FCA offering. Macron in 2017 reportedly offered Senard the post of employment minister in his administration.

In contrast to the globe-trotting Ghosn, Senard is little known outside France. Though he had never worked directly for an automaker, he has a long record of success at complex, global industrial enterprises that supply the auto industry, capped by his being named the first non-family member to run Michelin, the world's second-largest tire maker.

At Michelin, Senard led a program of steady expansion through acquisitions, last year buying Fenner, a maker of polymer products for the industrial market, for $1.7 billion and Camso, the Canadian off-road tire maker, for $1.45 billion. That has put Michelin, with about $24.5 billion in sales last year, in a position to challenge Bridgestone's decadelong run as the industry's leader.

"The Michelin he's leaving today is much more competitive, more profitable and has a stronger balance sheet," Houchois said. "There has been friction with some investors who wanted the company to move faster, but Michelin is a socially conscious company that won't 'slash and burn' to chase profits."

As CEO, Senard oversaw an ambitious plan for overseas growth, and avoided major scandals or corporate oversight issues. "Overall we haven't seen any governance issues at Michelin," Houchois said. "It's a well-run company that is fairly transparent."

Senard's genteel upbringing and business experience have led to a rapport, according to news reports, with Elkann, more than 20 years his junior. "Despite their age differences, they share a common culture," Houchois said. "Both recognize that they were born privileged, but there's always a sense of responsibility toward employees and jobs."

Preserving good jobs is "part of the spirit that they're trying to" achieve with the proposed merger, he said. FCA has promised not to close factories if the deal is approved.

Senard and Ghosn share similarities, too, in addition to both having worked at Michelin, long seen as a proving ground for France's best and brightest managers. Senard, born in the upscale Paris suburb of Neuilly, grew up as the son of a diplomat in embassies around the world, much as Ghosn navigated Brazilian, Lebanese and French cultures.

Senard graduated from HEC, the prestigious French business university, in 1976 and went on to earn a law degree there. He started his business career at Total, the French state oil company, working in finance and operations. In 1987 he moved to Saint-Gobain, which counts automotive glass among a broad portfolio of industrial products. From there, Senard joined Pechiney, an aluminum and packaging conglomerate, as CFO in 1996.

The Pechiney post proved to be critical for Senard. In 1999 the Canadian aluminum producer Alcan spearheaded a three-way merger proposal with Algroup of Switzerland that was rejected by antitrust authorities. Alcan then launched a successful hostile takeover bid in 2003 for Pechiney, and in the aftermath Senard was named CEO of Pechiney, having won the confidence of Alcan chief Travis Engen.

Michelin came calling in 2005, with CEO Edouard Michelin personally recruiting Senard to be CFO. By all accounts Senard and the industrial heir bonded quickly, and after Michelin drowned off the coast of Brittany at age 42 in 2006, Senard became one of three managing directors. In 2011, he was named to succeed Michel Rollier, a Michelin cousin, as CEO.

Noting the transition from family stewardship, Rollier said of Senard: "He has all the necessary qualities, a true strategic vision and a concern for operational excellence. What's more, he embodies the values of the group."