Nissan News: Nissan To Oust Carlos Ghosn After Being Arrested

[William Maley]

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Carlos Ghosn, the person credited with saving Nissan from total collapse and bringing it together with Renault and Mitsubishi finds himself in very hot water. Today, Ghosn was detained by Japanese authorities in Tokyo over the suspected breach of Japanese financial laws.

During a press conference this morning, Nissan CEO Hiroto Saikawa explained that Ghosn under-reported his income and used corporate assets for personal use. Another executive, Greg Kelly (Nissan's director of human resources) is also involved.

"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 today.

"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."

Saikawa said that the two would be removed from their posts during a board meeting on Thursday.

While many consider Ghosn to be a hero, he is also quite controversial. A lot of this comes down to his compensation. Ghosn got paychecks from his numerous roles as "chairman of the Renault-Nissan-Mitsubishi alliance, CEO of Renault, and chairman of both Nissan and Mitsubishi." According to Bloomberg, Ghosn took home about $17 million from the three companies.

Ghosn's arrest also calls into question to the future of the alliance between Nissan, Renault, and Mitsubishi.

Source: Automotive News (Subscription Required), Bloomberg, Nissan

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Regarding serious misconduct by Nissan Chairman and one representative director

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.

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.

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[riviera74]

Hope that the alliance has a plan B beyond Ghosn.  A one-man juggernaut, once taken down, is often hard to replace.

[Robert Hall]

So it sounds like 'Le Cost Cutter' is actually 'Le Tax Dodger'.

[frogger]

Personal use of company assets, imagine if everyone who did that was charged with a crime ;).

 

[William Maley]

You could say he is "Ghosn with the wind".

I'll show myself out.

[smk4565]

36 minutes ago, Robert Hall said:

So it sounds like 'Le Cost Cutter' is actually 'Le Tax Dodger'.

A million up votes.  And it would seem that you can be a financial genious if you lie about the numbers.

[daves87rs]

Ghosn, he no longer chosen......

[G. David Felt]

? Ghosn with the Wind ?

[ocnblu]

Someone said this is Japanese corporate culture at work.

[ocnblu]

So he's still "in" at Renault?  Let's see how this shakes out.

[Robert Hall]

3 hours ago, ocnblu said:

So he's still "in" at Renault?  Let's see how this shakes out.

Yes, and still in jail.  https://www.autoblog.com/2018/11/25/carlos-ghosn-ousted-nissan-renault-chairman/

[G. David Felt]

4 hours ago, Robert Hall said:

Yes, and still in jail.  https://www.autoblog.com/2018/11/25/carlos-ghosn-ousted-nissan-renault-chairman/

Now out at Mitsubishi too

http://www.thedrive.com/news/25108/exiled-auto-boss-carlos-ghosn-removed-as-mitsubishi-chairman-following-arrest

I suspect he will lose his Renault soon and then will come his board seats.

Guy is heading to Jail for 10 yrs minimum.

[ocnblu]

We'll see

[Robert Hall]

Maybe he will be 'Gone, Carlos, Gone'....

[ocnblu]

Or maybe he is a victim of that old Japanese racism.  Where they cannot abide a leader who is not Japanese.

[Drew Dowdell]

1 hour ago, ocnblu said:

Or maybe he is a victim of that old Japanese racism.  Where they cannot abide a leader who is not Japanese.

He would have been gone a long time ago if that were the case.

[ocnblu]

3 minutes ago, Drew Dowdell said:

He would have been gone a long time ago if that were the case.

Really?  We'll see.

[ocnblu]

So... Nissan's auditor questioned people at Nissan about his finances in TWENTY THIRTEEN and he was told everything was normal?  This stinks like a set-up and lends credence to what I'm saying.