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Nissan Chairman Carlos Ghosn Arrested, Expulsion Imminent

Nissan Chairman Carlos Ghosn Arrested, Expulsion Imminent

Nissan Chairman Carlos Ghosn has reportedly been arrested for financial misconduct. The automaker has also released a statement saying the executive will be removed from his role with the company quickly.

It turns out Nissan has been conducting an internal investigation on Ghosn for some time now after whistleblower reports suggested misconduct. The investigation also covered Nissan Representative Director Greg Kelly, according to a Reuters report.

Not all of the allegations have been made public, but among them is that Ghosn under-reported his compensation to Japanese authorities for “several years.” Other less detailed allegations suggest personal use of company funds, but exactly how he supposedly engaged in such behavior is unknown.

Nissan has released the following statement regarding the matter.

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.

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.

Also, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed.

Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation. We will continue to do so.

As the misconduct uncovered through our internal investigation constitutes clear violations of the duty of care as directors, Nissan’s Chief Executive Officer Hiroto Saikawa will propose to the Nissan Board of Directors to promptly remove Ghosn from his positions as Chairman and Representative Director. Saikawa will also propose the removal of Greg Kelly from his position as Representative Director.

Nissan deeply apologizes for causing great concern to our shareholders and stakeholders. We will continue our work to identify our governance and compliance issues, and to take appropriate measures.

Ghosn became COO of Nissan-Renault back in 1999 after forming the alliance between the two automakers. He came CEO of the Alliance back in 2001, effectively saving the company from death with dramatic cost-cutting measures.

In 2016 he became Chairman after adding Mitsubishi to the Nissan Renault Alliance.





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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  1. arutherford
    Tone
    Interesting hot take over at Jalopnik: Ghosn apparently had plans to formally merge Nissan and Renault, something the Nissan board was dead set against, yet had very little leverage in which to stop it ... until Ghosn was arrested and fired. See: https://jalopnik.com/was-carlos-ghosn-whacked-1830569053


    I see the Japanese and French governments are both playing politics here.
    Tone
    Interesting hot take over at Jalopnik: Ghosn apparently had plans to formally merge Nissan and Renault, something the Nissan board was dead set against, yet had very little leverage in which to stop it ... until Ghosn was arrested and fired. See: https://jalopnik.com/was-carlos-ghosn-whacked-1830569053
    Andrew_L
    Tone
    My Dad had four Maxima SEs, starting with a manual transmission, 190 hp 1992 that was a lovely car to drive. Subsequent models got bigger and more luxurious, but kind of lost the plot -- why spend that much on a near-luxury Maxima instead of getting an Infinity? When his attention turned to CUVs, he traded to a first-gen Rogue, which was nice enough but much more towards the current Nissan 'competitive but forgettable' line up. He's now on his second Ford Edge as he's in the CUV phase of his buying :-) Kind of says a lot that he basically just traded his Maximas in for a new one every four years or so, yet Nissan has lost him as a customer.

    That first Maxima, though, was a really nice package. Right size, nice looking, great driving - a lot of the 'goodness' of a 5-series for a fraction of the cost. Love to see Nissan find its way back to those cars!


    It's funny my parents had a conversion van, actually 2 an 84 which was traded in for a 94 both were Ford E150s and awesome road trip vehicles, but since the last van they only wanted sedans and never wanted a large vehicle again. They have been getting great deals on their Altimas tho because of the sedan sales slumps. I can't see them ever buying a CUV ever and they are getting up there in age now but they love their sedans.
    Tone
    Andrew_L
    I cannot agree with this statement more, the 300ZX was an awesome car. After my parents gave me their Mercury Sable they switched from Fords to Nissan and have been with them since only buying Altimas. I remember that 2006 they got and it was super boring and I couldn't understand why they bought that vs what was out there for a mid size. It wasn't even that reliable either it had all sorts of weird issues like the starter and grinding noises and random squealing when coasting. They are on their 3rd and 4th ones now.


    My Dad had four Maxima SEs, starting with a manual transmission, 190 hp 1992 that was a lovely car to drive. Subsequent models got bigger and more luxurious, but kind of lost the plot -- why spend that much on a near-luxury Maxima instead of getting an Infinity? When his attention turned to CUVs, he traded to a first-gen Rogue, which was nice enough but much more towards the current Nissan 'competitive but forgettable' line up. He's now on his second Ford Edge as he's in the CUV phase of his buying :-) Kind of says a lot that he basically just traded his Maximas in for a new one every four years or so, yet Nissan has lost him as a customer.

    That first Maxima, though, was a really nice package. Right size, nice looking, great driving - a lot of the 'goodness' of a 5-series for a fraction of the cost. Love to see Nissan find its way back to those cars!
    Andrew_L
    Tone
    Wonder what this will mean for Nissan. Ghosn was a saviour from a business point of view, but Nissan's under his leadership have generally been pretty vanilla cars from an enthusiast perspective. I'd love to see the company return to some of the glory of the 300ZX Twin Turbo, the original 510, the Maxima when it was the 4DSC and a legit Taurus SHO competitor, the boxy Sentra SE-R or even the Hardbody pickup and related SUV.


    I cannot agree with this statement more, the 300ZX was an awesome car. After my parents gave me their Mercury Sable they switched from Fords to Nissan and have been with them since only buying Altimas. I remember that 2006 they got and it was super boring and I couldn't understand why they bought that vs what was out there for a mid size. It wasn't even that reliable either it had all sorts of weird issues like the starter and grinding noises and random squealing when coasting. They are on their 3rd and 4th ones now.
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