Published: Tue, November 20, 2018
Finance | By Jaime Brady

Nissan and Renault CEO arrested

Nissan and Renault CEO arrested

The Japanese automaker said it would remove Ghosn from his position as chairman, after uncovering that the former CEO had purposely under-reported his compensation to the Tokyo Stock Exchange and made personal use of company assets.

The arrest follows a statement from Nissan confirming that it was investigating "serious misconduct" by Chairman Carlos Ghosn and another high-level official.

Earlier in the day, Ghosn was questioned on a voluntary basis by prosecutors from the special investigation section of the Tokyo District Public Prosecutors Office, people close to the investigation said.

He voluntarily went with Tokyo prosecutors, who arrested him after questioning, according to Japanese newspaper Asahi.

After Renault sealed an alliance with Nissan in 1999, Ghosn used similar methods to revive the ailing Japanese brand, leading to "business superstar" status in Japan, blanket media coverage and even a manga comic book on his life.

As well as his role with Nissan, Ghosn is the chairman of the Renault-Nissan-Mitsubishi Alliance, which encompasses ten brands and is one of the world's three largest auto groups.

YOKOHAMA, Japan - Based on a whistleblower report, Nissan Motor Co., Ltd. (Nissan) has been conducting an internal investigation over the past several months regarding misconduct involving the company's Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly. Saikawa said three major types of misconduct were found, including under-reporting income, using investment funds for personal gain and illicit use of company expenses.

Brazilian-born, of Lebanese descent and a French citizen, Ghosn began his career in 1978 at tyremaker Michelin, before moving to Renault in 1996, where he oversaw a turnaround at the French automaker that won him the nickname 'Le Cost Killer'.

Ghosn officially still leads the Renault-Nissan-Mitsubishi alliance as CEO and chairman.

"Nissan can not accept this conduct", Mr Saikawa said".

Southeast Asian summit puts focus on trade tensions, trends
The region already has a nonbinding "Declaration of Conduct" but is working toward a more robust agreement. In turn, Beijing stressed that it had the sovereign right to send troops to any part of its territory.

Best Black Friday 2018: Games, Play Stations, and Controllers, PS4 DEALS
Those two consoles aside, customers who take advantage of a Nintendo Switch deal will get a $50 GameStop gift card. For buyers looking for a PS4 and Spider-Man bundle, major retailers are offering some great deals.

Browns want to interview Condoleezza Rice for head coach job
Rice has become more involved in the sports world in recent years after serving as Secretary of State under President George W. No woman ever has served as head coach for a team in the four major USA sports leagues.

Ghosn allegedly reported only half of the $US88.7 million he earned in a five year period ending in March 2015.

Nissan's board is to meet Thursday to consider Ghosn's fate.

Regardless of the tumultuous road ahead, Sugiura said Nissan's sales are unlikely to be damaged by the Ghosn news.

Renault shares fell as much as 15 per cent in Paris on Monday, the lowest in nearly four years in the wake of the scandal, while Nissan global depository receipts dropped more than 11 per cent.

Ghosn helped put Nissan on the right track in the late 1990s after the company neared bankruptcy.

Unraveling of alliance is not total disaster for Renault shareholders - selling the Nissan stake may realize more value than current structure.

Mr Saikawa said Nissan would now try to "stabilise the situation, and normalise day-to-day operations" for staff and business partners.

When the scandal over improper inspections at Nissan emerged in 2017, Ghosn failed to fulfill his accountability and passed the responsibility down to Japanese executives.

In recent years, however, there has been discord in the company with regard to Ghosn.

Ghosn, who is also CEO of French automaker Renault, served as CEO of Nissan from 2001, after Renault bought a controlling interest in the company, until 2017.

Like this: