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Even though Carlos Ghosn is in jail in Japan and no longer in charge of Nissan and Mitsubishi, he still holds the chairman position at Renault. But new reports reveal that he'll be stepping down later this week. Reuters has learned from three sources that Ghosn has agreed to resign from Renault. This stems from Renault's largest stockholder, the French government calling for a leadership change. Also, Ghosn's latest request for bail was rejected by a Tokyo court. This comes a couple days before an emergency board meeting at Renault where they will consider appointing outgoing Michelin CEO Jean-Dominique Senard as chairman, and promoting Thierry Bollore as CEO. Renault did confirm the meeting, but a spokesman did not respond to any questions about what will take place at the meeting. The departure of Ghosn at Renault is being seen as the first step of smoothing out the rocky relationship between it and Nissan. As we have reported previously, Renault has been questioning Nissan's rationale of removing Ghosn. Partly this is due to Nissan trying to balance out the relationship between the two companies - Renault has voting power on Nissan's board, but Nissan doesn't have any sort of voting power on Renault's board. Source: Automotive News (Subscription Required), Reuters -
Even though Carlos Ghosn is in jail in Japan and no longer in charge of Nissan and Mitsubishi, he still holds the chairman position at Renault. But new reports reveal that he'll be stepping down later this week. Reuters has learned from three sources that Ghosn has agreed to resign from Renault. This stems from Renault's largest stockholder, the French government calling for a leadership change. Also, Ghosn's latest request for bail was rejected by a Tokyo court. This comes a couple days before an emergency board meeting at Renault where they will consider appointing outgoing Michelin CEO Jean-Dominique Senard as chairman, and promoting Thierry Bollore as CEO. Renault did confirm the meeting, but a spokesman did not respond to any questions about what will take place at the meeting. The departure of Ghosn at Renault is being seen as the first step of smoothing out the rocky relationship between it and Nissan. As we have reported previously, Renault has been questioning Nissan's rationale of removing Ghosn. Partly this is due to Nissan trying to balance out the relationship between the two companies - Renault has voting power on Nissan's board, but Nissan doesn't have any sort of voting power on Renault's board. Source: Automotive News (Subscription Required), Reuters View full article -
Carlos Ghosn Released on Bail and Leaves in Japanese Laborer Disguise
G. David Felt posted an article in Nissan
Japanese journalists await Carlos Ghosn who was expected to be released from Jail on bail after the Tokyo court granted the bail request. Ghosn lawyer's office said it would be near impossible for him to be released the same day due to an appeal by the prosecutor's office. Ghosn was granted bail set at $1 billion yen or equal to $9 million US at today's exchange rate. Ghosn is 64 and head of the auto alliance of Nissan Motors, Mitsubishi Motors, and Renault. He was arrested in 2018 on suspicion of underreporting his income by more than $80 million US dollars and saddling Nissan with his personal investment losses, allegations he denies. Ghosn new legal team was able to get bail granted on the conditions he will be kept under guard locally with limited to no outside information. Ghosn has claimed that the executives of Nissan are responsible for his arrest as they plotted and committed treason to prevent him from bringing Nissan further under Renault's control. While Carlos Ghosn has resigned from the CEO position on all three companies, he remains on the boards of all three companies. Yet now that he is out on bail he seems to be insulting the average workers of Japan and according to various stories, his new legal team has apologized for advising the former CEO to leave jail in a disguise being taken away in a work van with ladders attached to the roof. Local news outlets have mocked the costume drama bringing more attention than if he had just left on his own in normal business attire and in a business auto. Ghosn is one of the highest-profile detainees which also has made him one of the most famous now. Ghosn was seen later in the day walking with two women, one believed to be his wife and the other his daughter in a Tokyo park by where he will be living surrounded by press and still wearing the blue baseball cap and sunglasses.- 3 comments
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Japanese journalists await Carlos Ghosn who was expected to be released from Jail on bail after the Tokyo court granted the bail request. Ghosn lawyer's office said it would be near impossible for him to be released the same day due to an appeal by the prosecutor's office. Ghosn was granted bail set at $1 billion yen or equal to $9 million US at today's exchange rate. Ghosn is 64 and head of the auto alliance of Nissan Motors, Mitsubishi Motors, and Renault. He was arrested in 2018 on suspicion of underreporting his income by more than $80 million US dollars and saddling Nissan with his personal investment losses, allegations he denies. Ghosn new legal team was able to get bail granted on the conditions he will be kept under guard locally with limited to no outside information. Ghosn has claimed that the executives of Nissan are responsible for his arrest as they plotted and committed treason to prevent him from bringing Nissan further under Renault's control. While Carlos Ghosn has resigned from the CEO position on all three companies, he remains on the boards of all three companies. Yet now that he is out on bail he seems to be insulting the average workers of Japan and according to various stories, his new legal team has apologized for advising the former CEO to leave jail in a disguise being taken away in a work van with ladders attached to the roof. Local news outlets have mocked the costume drama bringing more attention than if he had just left on his own in normal business attire and in a business auto. Ghosn is one of the highest-profile detainees which also has made him one of the most famous now. Ghosn was seen later in the day walking with two women, one believed to be his wife and the other his daughter in a Tokyo park by where he will be living surrounded by press and still wearing the blue baseball cap and sunglasses. View full article
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Ghosn Claims His Arrest is Due to "plot and treason" By Nissan Executives
William Maley posted an article in Nissan
Carlos Ghosn has been sitting in a Japanese jail cell since mid-November on charges financial violations, including under-reporting compensation. It is unclear what awaits him in the coming months, but he believes that his downfall is due the result of "plot and treason" by Nissan executives opposed to plans of a merger between Nissan and Renault. Today, the Nikkei Asian Review published an exclusive interview with Ghosn from the detention center he is currently being held at. This is quite surprising as Ghosn has been "barred from meeting with his family or Nissan employees". During the short interview (about 20 minutes), Ghosn dismissed various accusations ranging from his 19-year reign at Nissan being a "dictatorship," to the numerous financial charges he is currently facing. One of those charges deals with $14.7 million in payments to a company run by Saudi businessman Khaled al-Juffali. Ghosn said "the executive in charge of the region signed [the approval]," and the funds came from Ghosn's "CEO reserve," a pot of money that he was free to decide how to spend. "[Have I] done [something] inappropriate? I am not a lawyer, I don't know the interpretation of [such] facts," Ghosn said. "These are known by everybody, why didn't they tell me?" Ghosn also talked about the plans for the deeper integration of Nissan, Renault, and Mitsubishi. The plan was to have the three closely integrated to ensure "autonomy under one holding company." Ghosn also revealed that he wanted to have Mitsubishi Motors CEO Osamu Masuko in the talks about the integration, but Nissan CEO Hiroto Saikawa wanted to keep the talks "one-on-one". Allies of Ghosn believed some Nissan executives were worried that Ghosn's power could increase under the integration, prompting them to work with Tokyo prosecutors. A Nissan spokesman told Bloomberg that Saikawa previously refuted the notion of a coup. “Nissan’s investigation uncovered substantial and convincing evidence of misconduct,” the company said in a statement. Source: Nikkei Asian Review, Bloomberg -
Carlos Ghosn has been sitting in a Japanese jail cell since mid-November on charges financial violations, including under-reporting compensation. It is unclear what awaits him in the coming months, but he believes that his downfall is due the result of "plot and treason" by Nissan executives opposed to plans of a merger between Nissan and Renault. Today, the Nikkei Asian Review published an exclusive interview with Ghosn from the detention center he is currently being held at. This is quite surprising as Ghosn has been "barred from meeting with his family or Nissan employees". During the short interview (about 20 minutes), Ghosn dismissed various accusations ranging from his 19-year reign at Nissan being a "dictatorship," to the numerous financial charges he is currently facing. One of those charges deals with $14.7 million in payments to a company run by Saudi businessman Khaled al-Juffali. Ghosn said "the executive in charge of the region signed [the approval]," and the funds came from Ghosn's "CEO reserve," a pot of money that he was free to decide how to spend. "[Have I] done [something] inappropriate? I am not a lawyer, I don't know the interpretation of [such] facts," Ghosn said. "These are known by everybody, why didn't they tell me?" Ghosn also talked about the plans for the deeper integration of Nissan, Renault, and Mitsubishi. The plan was to have the three closely integrated to ensure "autonomy under one holding company." Ghosn also revealed that he wanted to have Mitsubishi Motors CEO Osamu Masuko in the talks about the integration, but Nissan CEO Hiroto Saikawa wanted to keep the talks "one-on-one". Allies of Ghosn believed some Nissan executives were worried that Ghosn's power could increase under the integration, prompting them to work with Tokyo prosecutors. A Nissan spokesman told Bloomberg that Saikawa previously refuted the notion of a coup. “Nissan’s investigation uncovered substantial and convincing evidence of misconduct,” the company said in a statement. Source: Nikkei Asian Review, Bloomberg View full article
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Now it is official. Carlos Ghosn has stepped down as chairman and CEO of Renault late on Wednesday. The announcement was made this morning by French Finance Minister Bruno Le Maire in an interview with Bloomberg television. "Carlos Ghosn just resigned last night. Now it's time to define and put a new governance in place," said Le Maire. Renault's board of directors have decided on making outgoing Michelin CEO Jean-Dominique Senard as chairman, and promoting Thierry Bollore as CEO during an emergency meeting today. Renault is the last automaker in the alliance to deal with Ghosn. Since he was arrested back in November, both Nissan and Mitsubishi have kicked him out. But Renault kept him as chairman and CEO until they had all of the information on his alleged misconduct. This caused the relationship between Nissan and Renault to be become further strained. Source: Bloomberg, Renault Board of Directors communication Boulogne-Billancourt, 24 January 2019 – Renault's Board of Directors met on January 24, 2019 at 10 a.m. under the chairmanship of Philippe Lagayette, Lead Independent Director. The Board has taken note of the resignation of its current Chairman and Chief Executive Officer. The Board praised the Alliance's track record, which has enabled it to become the world's leading automobile manufacturer. The Board of Directors has decided to provide Renault with a new governance structure and, on this occasion, to institute a separation of the functions of Chairman of the Board and Chief Executive Officer. In addition to all the functions normally performed by the Chairman of the Board, the new Chairman of the Board of Directors of Renault will have to evaluate and, if necessary, change Renault's governance in order to ensure the transition to the new structure. He will present his proposals on the evolution of governance to the Board of Directors before the next General Shareholders' Meeting. In addition, Renault's Board of Directors wishes to supervise actively the functioning of the Alliance and decides to give its Chairman full responsibility for managing the Alliance on behalf of Renault, in liaison with the Chief Executive Officer. In this capacity, the Chairman of Renault's Board of Directors will be the main contact person for the Japanese partner and the other Alliance partners for any discussion on the Alliance's organization and evolution. He will propose to the Board of Directors any new Alliance agreement that he considers useful for Renault's future. He will be Renault's main representative in the Alliance's management bodies and at Nissan when Renault has the right of proposal. The Chief Executive Officer will coordinate for the company the Alliance's activities in the operational field under the authority of the Chairman. The Board co-opted Mr. Jean-Dominique Senard as new Director and elected him Chairman. On the latter's proposal, the Board appointed Thierry Bolloré as Chief Executive Officer. The Board expresses its confidence in the new leadership and wishes it every success in its mission. -
Now it is official. Carlos Ghosn has stepped down as chairman and CEO of Renault late on Wednesday. The announcement was made this morning by French Finance Minister Bruno Le Maire in an interview with Bloomberg television. "Carlos Ghosn just resigned last night. Now it's time to define and put a new governance in place," said Le Maire. Renault's board of directors have decided on making outgoing Michelin CEO Jean-Dominique Senard as chairman, and promoting Thierry Bollore as CEO during an emergency meeting today. Renault is the last automaker in the alliance to deal with Ghosn. Since he was arrested back in November, both Nissan and Mitsubishi have kicked him out. But Renault kept him as chairman and CEO until they had all of the information on his alleged misconduct. This caused the relationship between Nissan and Renault to be become further strained. Source: Bloomberg, Renault Board of Directors communication Boulogne-Billancourt, 24 January 2019 – Renault's Board of Directors met on January 24, 2019 at 10 a.m. under the chairmanship of Philippe Lagayette, Lead Independent Director. The Board has taken note of the resignation of its current Chairman and Chief Executive Officer. The Board praised the Alliance's track record, which has enabled it to become the world's leading automobile manufacturer. The Board of Directors has decided to provide Renault with a new governance structure and, on this occasion, to institute a separation of the functions of Chairman of the Board and Chief Executive Officer. In addition to all the functions normally performed by the Chairman of the Board, the new Chairman of the Board of Directors of Renault will have to evaluate and, if necessary, change Renault's governance in order to ensure the transition to the new structure. He will present his proposals on the evolution of governance to the Board of Directors before the next General Shareholders' Meeting. In addition, Renault's Board of Directors wishes to supervise actively the functioning of the Alliance and decides to give its Chairman full responsibility for managing the Alliance on behalf of Renault, in liaison with the Chief Executive Officer. In this capacity, the Chairman of Renault's Board of Directors will be the main contact person for the Japanese partner and the other Alliance partners for any discussion on the Alliance's organization and evolution. He will propose to the Board of Directors any new Alliance agreement that he considers useful for Renault's future. He will be Renault's main representative in the Alliance's management bodies and at Nissan when Renault has the right of proposal. The Chief Executive Officer will coordinate for the company the Alliance's activities in the operational field under the authority of the Chairman. The Board co-opted Mr. Jean-Dominique Senard as new Director and elected him Chairman. On the latter's proposal, the Board appointed Thierry Bolloré as Chief Executive Officer. The Board expresses its confidence in the new leadership and wishes it every success in its mission. View full article
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Rumorpile: Carlos Ghosn Wanted To Oust Hiroto Saikawa As Nissan CEO
William Maley posted an article in Nissan
"Since the arrest former Nissan chairman Carlos Ghosn last month, various reports have come out revealing the strained relationship between Nissan and its alliance partner, Renault. It has also brought up questions as to whether or not Nissan decided to 'push' Ghosn out by using the misuse of corporate assets as the reason. A new report from The Wall Street Journal is only stoking those fires. Sources tell the paper that Ghosn was planning to "shake up the senior management ranks at Nissan" and told some executives that he was planning on replacing current Nissan CEO Hiroto Saikawa - his hand-picked successor. While Ghosn supported Saikawa in public, the two would clash over various problems the company was facing. This included, Problems with inspections done on JDM vehicles, prompting recalls of more than a million vehicles Declining sales in the U.S. According to one source, Ghosn wanted to oust Saikawa and planned to put it to a vote at a board meeting in November. But that would not happen as Ghosn would be arrested in early on in the month. The board would oust Ghosn at a meeting later on in the month. Some believed that Saikawa wasn't in danger. A source familiar with the relationship between the two said "their differences hadn’t reached a point where Mr. Ghosn would have contemplated removing Mr. Saikawa." Still, Saikawa's reputation is taking quite the hit. The Nikkei has learned that Saikawa had signed various documents that "spelled out payments to Ghosn after his retirement as a consultant and for agreeing not to work for or join the board of any competitor." These documents are being used as evidence to show that Ghosn deferring payments of current salaries that were not reported. While prosecutors don't believe Saikawa knew about this, his position as CEO may be questioned "for missing the opportunity to catch the improprieties." Source: The Wall Street Journal (Subscription Required), Nikkei Asian Review (Subscription Required) -
Today in a Tokyo courtroom, former Nissan chairman Carlos Ghosn arrived for a hearing to have an explanation of why he is being detained. The hearing also allowed Ghosn and his team of lawyers to make their case against the various charges brought against him. Since November 19th, Ghosn has been in detention on violating various financial rules including failing to report 5 billion yen (about $44 million) from the 2010-2014 fiscal years. Ghosn's lawyers got their day in court via a "rarely used Japanese legal maneuver in which suspects are allowed to petition the court to hear a justification of their detention." According to Automotive News, Ghosn entered the courtroom "in handcuffs, wearing a dark suit with no tie and green plastic slippers. The usually immaculately coiffed businessman looked thinner than usual, courtesy of his rice-heavy diet in detention. The gray roots of his trademark raven black hair were beginning to show." Presiding judge Yuichi Tada read out the charges and explained to Ghosn that he is being detained due to being "a flight risk and might tamper with evidence." After this, Ghosn and his lawyers made their defense against the charges brought by Japanese prosecutors. “Contrary to the accusations made by the prosecutors, I never received any compensation from Nissan that was not disclosed, nor did I ever enter into any binding contract with Nissan to be paid a fixed amount that was not disclosed. The test is the ‘death test’: If I died today, could my heirs require Nissan to pay anything other than my retirement allowance? The answer is an unequivocal ‘No,'” Ghosn said at the hearing on the first indictment on not reporting compensation. Ghosn also addressed his most recent arrest on "allegedly transferring personal losses" to Nissan. He admitted in court "to leveraging Nissan as collateral against his swap losses but said that the loss-making swap contracts were transferred back to him at no cost to Nissan." “I have a genuine love and appreciation for Nissan. I have acted honorably, legally, and with the knowledge and approval of the appropriate executives inside the company -- with the sole purpose of supporting and strengthening Nissan, and helping to restore its place as one of Japan’s finest and most respected companies,” Ghosn said towards the end of the hearing. Whether this helps remains to be seen. Ghosn's lawyers are planning to petition the court to immediately end his detention later this week, but they are doubtful. At a press conference, lead defense attorney Motonari Otsuru said his cilent "would likely be indicted for a second time on Friday and be denied bail, keeping him locked up." Otsuru also predicted that Ghosn's case may not be brought to trial for another six months, allowing prosecutors to gather more evidence. Source: Automotive News (Subscription Required), Bloomberg View full article
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Today in a Tokyo courtroom, former Nissan chairman Carlos Ghosn arrived for a hearing to have an explanation of why he is being detained. The hearing also allowed Ghosn and his team of lawyers to make their case against the various charges brought against him. Since November 19th, Ghosn has been in detention on violating various financial rules including failing to report 5 billion yen (about $44 million) from the 2010-2014 fiscal years. Ghosn's lawyers got their day in court via a "rarely used Japanese legal maneuver in which suspects are allowed to petition the court to hear a justification of their detention." According to Automotive News, Ghosn entered the courtroom "in handcuffs, wearing a dark suit with no tie and green plastic slippers. The usually immaculately coiffed businessman looked thinner than usual, courtesy of his rice-heavy diet in detention. The gray roots of his trademark raven black hair were beginning to show." Presiding judge Yuichi Tada read out the charges and explained to Ghosn that he is being detained due to being "a flight risk and might tamper with evidence." After this, Ghosn and his lawyers made their defense against the charges brought by Japanese prosecutors. “Contrary to the accusations made by the prosecutors, I never received any compensation from Nissan that was not disclosed, nor did I ever enter into any binding contract with Nissan to be paid a fixed amount that was not disclosed. The test is the ‘death test’: If I died today, could my heirs require Nissan to pay anything other than my retirement allowance? The answer is an unequivocal ‘No,'” Ghosn said at the hearing on the first indictment on not reporting compensation. Ghosn also addressed his most recent arrest on "allegedly transferring personal losses" to Nissan. He admitted in court "to leveraging Nissan as collateral against his swap losses but said that the loss-making swap contracts were transferred back to him at no cost to Nissan." “I have a genuine love and appreciation for Nissan. I have acted honorably, legally, and with the knowledge and approval of the appropriate executives inside the company -- with the sole purpose of supporting and strengthening Nissan, and helping to restore its place as one of Japan’s finest and most respected companies,” Ghosn said towards the end of the hearing. Whether this helps remains to be seen. Ghosn's lawyers are planning to petition the court to immediately end his detention later this week, but they are doubtful. At a press conference, lead defense attorney Motonari Otsuru said his cilent "would likely be indicted for a second time on Friday and be denied bail, keeping him locked up." Otsuru also predicted that Ghosn's case may not be brought to trial for another six months, allowing prosecutors to gather more evidence. Source: Automotive News (Subscription Required), Bloomberg -
Tokyo Prosecutors Bring New Charges Forward Against Carlos Ghosn
William Maley posted an article in Nissan
The dream of Carlos Ghosn spending the holidays outside of jail has been dashed. Early this morning in Tokyo, prosecutors re-arrested Ghosn on new charges that allege he shifted personal trades to Nissan to "make it responsible for 1.85 billion yen ($16.6 million) in appraisal losses," around October 2008. Prosecutors also allege that Ghosn had Nissan " deposit a total of $14.7 million on four occasions between June 2009 and March 2012 into a related bank account." This re-arrest allows prosecutors to detain Ghosn for another 10 days to allow them to continue building their case against him. It may also hurt his chances of getting bail down the road. Lawyers for Ghosn declined to comment. The new allegations would be in violation of Japan’s Companies Act and is seen as a more serious charge than under-reporting income. According to Bloomberg, Ghosn could be facing a maximum prison sentence of 10 years and a 10 million yen fine (about $89,980). “It’s a very serious charge. If there was a conviction, I think it would mean that there’s been a judgment that it’s more than just typical self-dealing corporate malfeasance but something that really harmed the company and was particularly malevolent in terms of the amount of planning that went into it,” said Colin Jones, a professor of law at Doshisha University in Kyoto. Source: Bloomberg (Subscription Required) -
The dream of Carlos Ghosn spending the holidays outside of jail has been dashed. Early this morning in Tokyo, prosecutors re-arrested Ghosn on new charges that allege he shifted personal trades to Nissan to "make it responsible for 1.85 billion yen ($16.6 million) in appraisal losses," around October 2008. Prosecutors also allege that Ghosn had Nissan " deposit a total of $14.7 million on four occasions between June 2009 and March 2012 into a related bank account." This re-arrest allows prosecutors to detain Ghosn for another 10 days to allow them to continue building their case against him. It may also hurt his chances of getting bail down the road. Lawyers for Ghosn declined to comment. The new allegations would be in violation of Japan’s Companies Act and is seen as a more serious charge than under-reporting income. According to Bloomberg, Ghosn could be facing a maximum prison sentence of 10 years and a 10 million yen fine (about $89,980). “It’s a very serious charge. If there was a conviction, I think it would mean that there’s been a judgment that it’s more than just typical self-dealing corporate malfeasance but something that really harmed the company and was particularly malevolent in terms of the amount of planning that went into it,” said Colin Jones, a professor of law at Doshisha University in Kyoto. Source: Bloomberg (Subscription Required) View full article
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It hasn't been easy for former Nissan chairman Carlos Ghosn and aide Greg Kelly since being arrested last month. In that time, the two have been brought up on various charges alleging financial misconduct and having their stay of detention being extended. But there appears to be some good news over the horizon. Today in a Tokyo courtroom, a judge rejected the request of prosecutors to extend Ghosn's and Kelly's detention by an additional 10 days. The Japan Times reports that prosecutors were seeking an additional 10-day extension related to a "separate warrant served to Ghosn" under the allegation that he understated "his remuneration by ¥4.2 billion in the automaker’s securities reports for the three business years through March this year." Lawyers for Ghosn said they are planning to apply for bail, which could mean Ghosn could be out of jail by Friday. But Japanese prosecutors have appealed the decision. According to Automotive News, there is no set date for a possible decision. As for Kelly, lawyers are planning to file for bail either today or tomorrow. “The chances of bail are very high. To begin with, this isn’t a case that should need such a lengthy detention,” said Nobuo Gohara, a lawyer and former prosecutor. Tsutomu Nakamura, a former public prosecutor doesn't share the same view. He tells Bloomberg that the decision made by the court doesn't mean Ghosn will walk out immediately. “The prosecutors will file the complaint against this judge’s decision immediately. I think that the prosecutors failed to prove the seriousness of the case,” he said. Source: Automotive News (Subscription Required), Bloomberg (Subscription Required), Japan Times View full article
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It hasn't been easy for former Nissan chairman Carlos Ghosn and aide Greg Kelly since being arrested last month. In that time, the two have been brought up on various charges alleging financial misconduct and having their stay of detention being extended. But there appears to be some good news over the horizon. Today in a Tokyo courtroom, a judge rejected the request of prosecutors to extend Ghosn's and Kelly's detention by an additional 10 days. The Japan Times reports that prosecutors were seeking an additional 10-day extension related to a "separate warrant served to Ghosn" under the allegation that he understated "his remuneration by ¥4.2 billion in the automaker’s securities reports for the three business years through March this year." Lawyers for Ghosn said they are planning to apply for bail, which could mean Ghosn could be out of jail by Friday. But Japanese prosecutors have appealed the decision. According to Automotive News, there is no set date for a possible decision. As for Kelly, lawyers are planning to file for bail either today or tomorrow. “The chances of bail are very high. To begin with, this isn’t a case that should need such a lengthy detention,” said Nobuo Gohara, a lawyer and former prosecutor. Tsutomu Nakamura, a former public prosecutor doesn't share the same view. He tells Bloomberg that the decision made by the court doesn't mean Ghosn will walk out immediately. “The prosecutors will file the complaint against this judge’s decision immediately. I think that the prosecutors failed to prove the seriousness of the case,” he said. Source: Automotive News (Subscription Required), Bloomberg (Subscription Required), Japan Times -
Nissan has expanded its probe into former chairman Carlos Ghosn with the investigation into various European subsidiaries that may bring more criminal charges. Automotive News has learned from sources that the focus of the investigation will be around the Renault-Nissan BV based in the Netherlands. This was set up by the two automakers back in 2002 to be a strategic management company that oversees the alliance. But one source says that Nissan is planning to look into "as many as a dozen other Nissan-affiliated subsidiaries set up in the Netherlands," for possible financial misconduct. Japanese prosecutors are looking into some of the companies with the help of Nissan. (Emphasis mine.) This move may signal that the scandal may have reached outward of Japan and bring investigations right to Renault's doorstep. Automotive News also notes this could "further complicate" the delicate relations between the two. That neatly transitions us to a report from Reuters where a source reveals that Renault has told Nissan not to contact its directors ahead of a December 13th meeting of their board. The source says "such contact was outside the agreed channels for communication of the sensitive findings." As we reported back on Friday, Nissan offered Renault "a presentation that summarized the evidence" to help assuage some suspicious held by the French automaker. Renault declined, asking Nissan for the "presence of lawyers and the full report on the allegations." This reportedly came earlier this week as officials from Nissan met with Renault's legal team in France. The meeting tomorrow will see the members of the board discuss the findings of Nissan's investigation and debate the future of Carlos Ghosn. Spokespeople for Nissan and Renault declined to comment. Source: Automotive News (Subscription Required), Reuters View full article
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Rumorpile: Nissan's Probe Into Ghosn Expands Into Other Subsidiaries
William Maley posted an article in Nissan
Nissan has expanded its probe into former chairman Carlos Ghosn with the investigation into various European subsidiaries that may bring more criminal charges. Automotive News has learned from sources that the focus of the investigation will be around the Renault-Nissan BV based in the Netherlands. This was set up by the two automakers back in 2002 to be a strategic management company that oversees the alliance. But one source says that Nissan is planning to look into "as many as a dozen other Nissan-affiliated subsidiaries set up in the Netherlands," for possible financial misconduct. Japanese prosecutors are looking into some of the companies with the help of Nissan. (Emphasis mine.) This move may signal that the scandal may have reached outward of Japan and bring investigations right to Renault's doorstep. Automotive News also notes this could "further complicate" the delicate relations between the two. That neatly transitions us to a report from Reuters where a source reveals that Renault has told Nissan not to contact its directors ahead of a December 13th meeting of their board. The source says "such contact was outside the agreed channels for communication of the sensitive findings." As we reported back on Friday, Nissan offered Renault "a presentation that summarized the evidence" to help assuage some suspicious held by the French automaker. Renault declined, asking Nissan for the "presence of lawyers and the full report on the allegations." This reportedly came earlier this week as officials from Nissan met with Renault's legal team in France. The meeting tomorrow will see the members of the board discuss the findings of Nissan's investigation and debate the future of Carlos Ghosn. Spokespeople for Nissan and Renault declined to comment. Source: Automotive News (Subscription Required), Reuters -
"Since the arrest former Nissan chairman Carlos Ghosn last month, various reports have come out revealing the strained relationship between Nissan and its alliance partner, Renault. It has also brought up questions as to whether or not Nissan decided to 'push' Ghosn out by using the misuse of corporate assets as the reason. A new report from The Wall Street Journal is only stoking those fires. Sources tell the paper that Ghosn was planning to "shake up the senior management ranks at Nissan" and told some executives that he was planning on replacing current Nissan CEO Hiroto Saikawa - his hand-picked successor. While Ghosn supported Saikawa in public, the two would clash over various problems the company was facing. This included, Problems with inspections done on JDM vehicles, prompting recalls of more than a million vehicles Declining sales in the U.S. According to one source, Ghosn wanted to oust Saikawa and planned to put it to a vote at a board meeting in November. But that would not happen as Ghosn would be arrested in early on in the month. The board would oust Ghosn at a meeting later on in the month. Some believed that Saikawa wasn't in danger. A source familiar with the relationship between the two said "their differences hadn’t reached a point where Mr. Ghosn would have contemplated removing Mr. Saikawa." Still, Saikawa's reputation is taking quite the hit. The Nikkei has learned that Saikawa had signed various documents that "spelled out payments to Ghosn after his retirement as a consultant and for agreeing not to work for or join the board of any competitor." These documents are being used as evidence to show that Ghosn deferring payments of current salaries that were not reported. While prosecutors don't believe Saikawa knew about this, his position as CEO may be questioned "for missing the opportunity to catch the improprieties." Source: The Wall Street Journal (Subscription Required), Nikkei Asian Review (Subscription Required) View full article
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This morning, Tokyo prosecutors have indicted former Nissan boss Carlos Ghosn, and former representative director Greg Kelly for violating Japan’s Financial Instruments and Exchange Act. According to Japanese media, Ghosn allegedly failed to report 5 billion yen (about $44 million) from the 2010-2014 fiscal years. Prosecutors also rearrested both men on new allegations for under-reporting compensation totaling 4 billion yen (about $35.5 billion) from the 2015-2017 fiscal year. Prosecutors had until today to either indict or re-arrest Ghosn and Kelly. Under Japanese law, prosecutors can hold someone in custody for 20 days. After that, they need to either indict, set them free, or re-arrest the person with new charges. The last option resets the clock and allows prosecutors to continue their investigation. Both Ghosn and Kelly have denied any wrongdoing according to Japanese media. Nissan was also indicted today on charges of filing falsified securities reports. As we reported on Friday, a company can be held accountable if employees make false statements in company reports under Japanese law. “Making false disclosures in annual securities reports greatly harms the integrity of Nissan’s public disclosures in the securities markets, and the company expresses its deepest regret. Nissan will continue its efforts to strengthen its governance and compliance, including making accurate disclosures of corporate information,” said Nissan in a statement. There's also a new twist in the case. Reuters reports that Ghosn and Nissan are currently fighting over access to an apartment Rio de Janiero. In a filing to a Brazilian court last week, Nissan (who owns the apartment) is trying to block Ghosn from getting access into the apartment as it would “represent an incalculable risk of destruction of potential evidence of crimes allegedly committed.” The company says there are three safes that were found in an audit and are waiting to be opened. Ghosn has been trying to get into the apartment since late November when a lawyer representing Ghosn asked for permission to enter the apartment. It currently houses “personal belongings, documents, cash, objects and art pieces” that Ghosn wants to retrieve. “Nissan has been cooperating with authorities to investigate misconduct on the part of its former chairman, and is working to prevent the destruction of any potential evidence that could occur by allowing access to residences in question,” a Nissan spokesman told Reuters. The apartment was purchased in 2011 by a Nissan subsidiary after the company opened a plant in the nearby city of Resende. In a filing, Nissan said it had bought the apartment expecting that Ghosn’s trips to Brazil would “become more constant” after the factory opened. It should be noted that Ghosn was born and maintains Brazilian citizenship. Jose Roberto de Castro Neves, a lawyer representing Ghosn told Reuters he didn't know about the existence of three different safes and that it was “absurd speculation” that they may contain evidence of wrongdoing. Source: Automotive News (Subscription Required), Reuters, 2 View full article
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This morning, Tokyo prosecutors have indicted former Nissan boss Carlos Ghosn, and former representative director Greg Kelly for violating Japan’s Financial Instruments and Exchange Act. According to Japanese media, Ghosn allegedly failed to report 5 billion yen (about $44 million) from the 2010-2014 fiscal years. Prosecutors also rearrested both men on new allegations for under-reporting compensation totaling 4 billion yen (about $35.5 billion) from the 2015-2017 fiscal year. Prosecutors had until today to either indict or re-arrest Ghosn and Kelly. Under Japanese law, prosecutors can hold someone in custody for 20 days. After that, they need to either indict, set them free, or re-arrest the person with new charges. The last option resets the clock and allows prosecutors to continue their investigation. Both Ghosn and Kelly have denied any wrongdoing according to Japanese media. Nissan was also indicted today on charges of filing falsified securities reports. As we reported on Friday, a company can be held accountable if employees make false statements in company reports under Japanese law. “Making false disclosures in annual securities reports greatly harms the integrity of Nissan’s public disclosures in the securities markets, and the company expresses its deepest regret. Nissan will continue its efforts to strengthen its governance and compliance, including making accurate disclosures of corporate information,” said Nissan in a statement. There's also a new twist in the case. Reuters reports that Ghosn and Nissan are currently fighting over access to an apartment Rio de Janiero. In a filing to a Brazilian court last week, Nissan (who owns the apartment) is trying to block Ghosn from getting access into the apartment as it would “represent an incalculable risk of destruction of potential evidence of crimes allegedly committed.” The company says there are three safes that were found in an audit and are waiting to be opened. Ghosn has been trying to get into the apartment since late November when a lawyer representing Ghosn asked for permission to enter the apartment. It currently houses “personal belongings, documents, cash, objects and art pieces” that Ghosn wants to retrieve. “Nissan has been cooperating with authorities to investigate misconduct on the part of its former chairman, and is working to prevent the destruction of any potential evidence that could occur by allowing access to residences in question,” a Nissan spokesman told Reuters. The apartment was purchased in 2011 by a Nissan subsidiary after the company opened a plant in the nearby city of Resende. In a filing, Nissan said it had bought the apartment expecting that Ghosn’s trips to Brazil would “become more constant” after the factory opened. It should be noted that Ghosn was born and maintains Brazilian citizenship. Jose Roberto de Castro Neves, a lawyer representing Ghosn told Reuters he didn't know about the existence of three different safes and that it was “absurd speculation” that they may contain evidence of wrongdoing. Source: Automotive News (Subscription Required), Reuters, 2 -
Carlos Ghosn to Be Indicted By Japanese Prosectors As Early As Monday
William Maley posted an article in Nissan
Three weeks after he was arrested in a Tokyo airport, Carlos Ghosn will soon be officially charged. Bloomberg has learned from sources that Ghosn will appear in Japanese court as soon as Monday to be indicted on various financial charges. Japanese prosecutors have to either charge Ghosn or arrest him new charges if they don't want to release him. Sources also tell Bloomberg that prosecutors are planning to bring new charges against Ghosn. While not public, sources believe it may relate to Ghosn under-reporting his income for the past three fiscal years. The Tokyo prosecutors’ office declined to comment. Meanwhile, Nissan is facing its own set of issues from Ghosn's arrest. The Nikkei Asian Review is reporting that prosecutors will file charges against the company for making false statements on securities reports. This is due to Ghosn and Greg Kelly, a former member of Nissan's board of directors for under-reporting salaries in five annual reports that go through the fiscal year that ended in March 2015. In Japan, a company can be held accountable for employees misstating financial information and not stopping it - hence why Nissan is getting charged. A source told Automotive News that Nissan had been "preparing for the possibility of charges" since allegations against the two men came out last month. It appears that the relationship between Nissan and Renault is taking hit. Unlike Nissan and Mitsubishi which have outed Ghosn as chairman, Renault is keeping him as chairman and CEO for the time being. The French automaker has named an interim CEO and the duties of chairman are being performed by a director. Why hasn't Renault followed Nissan and Mitsubishi? According to a Renault spokesman, Nissan hasn't provided evidence that the board has asked for in their internal probe. He declined to comment any further. Sources at the automaker give a clearer view. Executives at Renault are quite suspicious of Nissan’s motives with Ghosn. The French automaker has asked for proof from Nissan concerning the allegations against Ghosn. Nissan offered a presentation that summarized the evidence, but Renault passed, asking for the "presence of lawyers and the full report on the allegations." Renault has good reason to be suspicious of Nissan considering the odd arrangement of their alliance. Renault is the largest shareholder in Nissan and has voting rights. But Nissan doesn't have any voting rights at Renault due in part to the French government being the lead shareholder. Nissan has been trying to balance this relationship, "but its demands have been stonewalled by Renault and the French state." It should also be noted that Ghosn had been pushing for a possible merger between the two - something Renault wanted but Nissan didn't. Source: Automotive News (Subscription Required) Bloomberg, Nikkei Asian Review -
Three weeks after he was arrested in a Tokyo airport, Carlos Ghosn will soon be officially charged. Bloomberg has learned from sources that Ghosn will appear in Japanese court as soon as Monday to be indicted on various financial charges. Japanese prosecutors have to either charge Ghosn or arrest him new charges if they don't want to release him. Sources also tell Bloomberg that prosecutors are planning to bring new charges against Ghosn. While not public, sources believe it may relate to Ghosn under-reporting his income for the past three fiscal years. The Tokyo prosecutors’ office declined to comment. Meanwhile, Nissan is facing its own set of issues from Ghosn's arrest. The Nikkei Asian Review is reporting that prosecutors will file charges against the company for making false statements on securities reports. This is due to Ghosn and Greg Kelly, a former member of Nissan's board of directors for under-reporting salaries in five annual reports that go through the fiscal year that ended in March 2015. In Japan, a company can be held accountable for employees misstating financial information and not stopping it - hence why Nissan is getting charged. A source told Automotive News that Nissan had been "preparing for the possibility of charges" since allegations against the two men came out last month. It appears that the relationship between Nissan and Renault is taking hit. Unlike Nissan and Mitsubishi which have outed Ghosn as chairman, Renault is keeping him as chairman and CEO for the time being. The French automaker has named an interim CEO and the duties of chairman are being performed by a director. Why hasn't Renault followed Nissan and Mitsubishi? According to a Renault spokesman, Nissan hasn't provided evidence that the board has asked for in their internal probe. He declined to comment any further. Sources at the automaker give a clearer view. Executives at Renault are quite suspicious of Nissan’s motives with Ghosn. The French automaker has asked for proof from Nissan concerning the allegations against Ghosn. Nissan offered a presentation that summarized the evidence, but Renault passed, asking for the "presence of lawyers and the full report on the allegations." Renault has good reason to be suspicious of Nissan considering the odd arrangement of their alliance. Renault is the largest shareholder in Nissan and has voting rights. But Nissan doesn't have any voting rights at Renault due in part to the French government being the lead shareholder. Nissan has been trying to balance this relationship, "but its demands have been stonewalled by Renault and the French state." It should also be noted that Ghosn had been pushing for a possible merger between the two - something Renault wanted but Nissan didn't. Source: Automotive News (Subscription Required) Bloomberg, Nikkei Asian Review View full article
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Nissan News: Nissan To Oust Carlos Ghosn After Being Arrested
William Maley posted a topic in Nissan
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 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. View full article -
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 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. -
Carlos Ghosn announced yesterday that he would be stepping down as CEO for Nissan on April 1st. In a statement, Ghosn explained that he wants to focus on the expansion and stewardship of the alliance between Nissan, Renault, and Mitsubishi. That doesn't mean Ghosn is fully stepping away from Nissan. He will still serve as the chairman of the board for the brand. "As Nissan's Chairman, I will continue to supervise and guide the company, both independently and within the Renault-Nissan-Mitsubishi Alliance. This planned change will also allow me to devote more time and energy to managing the strategic and operational evolution and expansion of the Alliance and ensuring that all its members benefit from the competitive advantages that its scale will deliver. I am committed to supporting the Alliance as it evolves and expands, and will continue to serve each member of the Alliance wherever and whenever necessary," said Ghosn. Ghosn's replacement is Hiroto Saikawa, currently the co-CEO of Nissan. Saikawa joined the company back in 1997 and has held a number of roles including the company's Chief Competitive Officer. "I would like to thank Mr. Ghosn and the Nissan board for entrusting me with this new responsibility. Under Mr. Ghosn's chairmanship and with the support of the excellent leadership team that has been built at Nissan, my focus will be delivering our company's continued performance and development and on continuing Nissan's contribution to the success of the Alliance," said Saikawa. Source: Nissan Press Release is on Page 2 Hiroto Saikawa appointed as Nissan Chief Executive Officer Carlos Ghosn to continue to serve as Chairman of Nissan’s Board of Directors YOKOHAMA, Japan – At the recommendation of Chairman of the Board and Chief Executive Officer Carlos Ghosn, the Nissan Board of Directors has decided that as of April 1, 2017, Hiroto Saikawa will assume the position of Chief Executive Officer. Mr. Ghosn will continue to serve as Chairman of the Board of Directors, and he will seek a renewal of his mandate at the company's general shareholders meeting in June 2017. This planned management evolution follows Mr. Ghosn's leadership of the recent expansion of the Renault-Nissan Alliance to include Mitsubishi Motors, which positions the Alliance among the top automotive groups in terms of scale. As Chairman of all three Alliance companies, and as Chief Executive Officer of the Renault Group, Mr. Ghosn wishes to focus more of his attention on the expansion and stewardship of the Alliance, as its Chairman and CEO. In this role, he will ensure that the opportunities available to Alliance members are fully harnessed. Mr. Ghosn stated, "I am confident that the management team I have developed at Nissan over the past 18 years has the talent and experience to meet the company's operational and strategic goals. Having recently taken on new responsibilities at Mitsubishi Motors, and taking into consideration the upcoming Nissan general shareholders meeting, I have decided that the time is right for Hiroto Saikawa to succeed me as Nissan's CEO." He continued, "As Nissan's Chairman, I will continue to supervise and guide the company, both independently and within the Renault-Nissan-Mitsubishi Alliance. This planned change will also allow me to devote more time and energy to managing the strategic and operational evolution and expansion of the Alliance and ensuring that all its members benefit from the competitive advantages that its scale will deliver. I am committed to supporting the Alliance as it evolves and expands, and will continue to serve each member of the Alliance wherever and whenever necessary." Mr. Saikawa currently serves as Nissan's co-CEO and a representative director. Between April 2013 and October 2016, he was Nissan's Chief Competitive Officer. Mr. Saikawa joined Nissan in 1977, and since 1999 he has served in a variety of senior management positions, including Chairman of the Management Committees of the Americas and Europe, as well as the Executive Vice President of Purchasing. In addition to his responsibilities at Nissan, Mr. Saikawa is the current Chairman of the Japan Automobile Manufacturers Association (JAMA). He previously served as a member of the board of directors of Renault between 2006 and 2016. Mr. Saikawa stated, "I would like to thank Mr. Ghosn and the Nissan board for entrusting me with this new responsibility. Under Mr. Ghosn's chairmanship and with the support of the excellent leadership team that has been built at Nissan, my focus will be delivering our company's continued performance and development and on continuing Nissan's contribution to the success of the Alliance."
