Nissan Chairman Carlos Ghosn to Be Removed for “Serious Misconduct”

Nissan Chairman Carlos Ghosn has been arrested over allegations of financial misconduct and is expected to be removed from his position shortly.

Over the past several months, Nissan has been conducting an internal investigation on Ghosn and fellow board member Greg Kelly. “The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation,” Nissan said in a statement. The automaker added “numerous other significant acts of misconduct have been uncovered, such as personal use of company assets.”

According to CNN, prosecutors in Japan arrested the two men Monday evening. Nissan Chief Executive Officer Hiroto Saikawa will propose to the board of directors the removal of Ghosn and Kelly from their positions at Nissan.

Ghosn’s removal will reverberate throughout the world’s largest global carmaking alliance. Ghosn is the head of the Nissan-Renault-Mitsubishi alliance, which produces one out of every nine cars sold around the globe, according to CNN. Mitsubishi said in a statement that it is also preparing to take action against Ghosn following the reports.

The scandal likely marks the end of Ghosn’s long history with the automakers. He joined Renault in 1996, and three years later, he became Chief Operating Officer for Nissan. At the turn of the new millenium, he was credited with taking Nissan from near-bankruptcy to profitability in two years. He served as Nissan CEO starting in 2001, and in May 2005, he added Renault CEO to his title and became the first person to run two global Fortune 500 companies simultaneously. He stepped down as Nissan CEO in 2017 after Mitsubishi joined the Nissan-Renault alliance, although he remained chairman of Nissan.

Nissan says it has been cooperating with Japanese prosecutors in their investigation. “Nissan deeply apologizes for causing great concern to our shareholders and stakeholders,” the automaker said in a statement. “We will continue our work to identify our governance and compliance issues, and to take appropriate measures.”

In its own statement, Renault acknowledged the contents of Nissan’s press release. The French automaker didn’t say what actions it would take against Ghosn, but noted the board will meet shortly. “Pending provision of precise information from Carlos Ghosn, Chairman and Chief Executive Officer of Renault, the above directors wish to express their dedication to the defense of Renault’s interest in the Alliance,” the statement said.

Source: Nissan, CNN

The post Nissan Chairman Carlos Ghosn to Be Removed for “Serious Misconduct” appeared first on Motor Trend.

from Motor Trend https://ift.tt/2Ft3qJH