Published: Wed, November 21, 2018
Economy | By

Nissan's Carlos Ghosn arrested over misconduct claims

Nissan's Carlos Ghosn arrested over misconduct claims

Ghosn is accused of under-reporting income of about $44 million and misusing company funds at Nissan.

"I don't think there is anyone else on Earth like Ghosn who could run Renault, Nissan and Mitsubishi", Masuko told reporters in Tokyo.

Following an emergency board meeting on Tuesday, Renault said Mr Ghosn would remain as its chairman and chief executive. Ghosn's position as board chair for Renault will be temporarily occupied by the lead independent director, Phillipe Lagayette.

Mr Bollore, 55, a soft-spoken French national from Brittany, joined Renault in 2012 from car-parts supplier Faurecia SA, where he rose through the ranks to become vice president with responsibilities for global industry, quality and packaging.

France's Renault says it has made a decision to keep its CEO Carlos Ghosn on despite his arrest in Japan on allegations that he misused assets of partner Nissan Motor Co. and misreported his income.

Japan's Nikkei business daily reported on Tuesday that Ghosn had received share price-linked compensation of about 4 billion yen over a five-year period to March 2015 but that it went unreported in Nissan's financial reports.

The allegations of misconduct relate to Ghosn's role as chairman of Nissan, which Renault now owns a 43.4 per cent stake in.

Renault's board indicated that it was in the dark about the nature of the allegations against Ghosn. However, the full scope of potential allegations is unclear.

Nissan, Mitsubishi and Renault, a three-way alliance of carmakers, all led by Mr Ghosn, have all seen their share prices tumble.

Ghosn, who was set to leave in 2022, had been laying the groundwork to ensure a future for the alliance, including the option of a merger. The setup has come under pressure from Nissan in recent years to address a lopsided balance of power after the Japanese company consistently outgrew Renault in sales and profits. It may also bolster Chief Operating Officer Thierry Bollore's powers.

Renault owns 43.4 percent of Nissan, which owns 15 percent of Renault, with no voting rights in a partnership that began in 1999.

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