Carlos Ghosn isn't currently fit to lead Renault following his arrest in Japan, French Finance Minister Bruno Le Maire has said.
Ghosn, who acts as CEO of Renault and chairman of both Renault and Nissan, was placed under arrest in Japan on Monday after he allegedly violated Japanese financial law. The arrest followed an investigation by a select number of people at Nissan.
The Japanese carmaker has said it will recommend that Ghosn be removed from his role and now attention has turned to what position Renault will take.
The French government has a 15 percent stake in Renault, which in turn holds a 43.4% stake in Nissan. French Finance Minister Bruno Le Maire has said Renault should now set up an interim management structure.
"Carlos Ghosn is no longer in a position capable of leading Renault," Mr Le Maire told France Info radio on Tuesday.
Le Maire added that the French government had already investigated Ghosn's tax affairs but had found nothing wrong.