France and Japan's leaders met for bilateral talks to avert a diplomatic row over the Renault-Nissan-Mitsubishi alliance Friday following the surprise arrest of its Chairman Carlos Ghosn last month.

With the carmaking alliance facing its biggest test after the ousting of Ghosn as chairman of Nissan Motor Co. and affiliate Mitsubishi Motors Corp. over financial misconduct allegations, President Emmanuel Macron sat down with Prime Minister Shinzo Abe at the Group of 20 summit in Buenos Aires.

Ghosn's arrest over accusations including the underreporting of income has triggered new attempts by Nissan to weaken Renault's control of the French-Japanese alliance, adding to challenges facing Macron at home.