Arrest of Carlos Ghosn Hit Nissan And Renault
A scandal broke out in the automotive industry: the Renault-Nissan-Mitsubishi Alliance’s Chairman and CEO Carlos Ghosn has been arrested. He is suspected of financial misconduct.
Mr. Ghosn got arrested in Japan on suspicion of tax evasion and embezzlement of corporate funds for personal gain. It is about millions of dollars.
Carlos Ghosn is one of the most famous and high-paid top managers in the automotive industry. In the past few years, in addition to various nominal and public positions, he served as Chairman of Nissan.
He has received millions of dollars of salary a year in Japan. Mr. Ghosn invariably retorted any attack of the press and colleagues on this subject.
Current Nissan CEO Hiroto Saikawa has said of his dismissal and also proposed to fire Representative Director Greg Kelly, Ghosn’s protégé.
Ghosn and Kelly are known to jointly develop a scheme for concealing incomes. For many years they have been engaged in financial violations.
According to the latest data, Carlos Ghosn used the funds to buy luxury housing abroad. Voting about the dismissal of these two should be held on Thursday, November 22.
Nissan will hold a press conference in the near future to clarify its position regarding the case. The company will announce a further strategy too.
The incident can have a significant impact on the market position of the Nissan-Renault-Mitsubishi Alliance. Just yesterday, Nissan shares fell by almost 15%, while Renault shares fell by 8.43%.