Nissan chairman arrested on suspicion of 'financial misconduct'

Nissan And Renault Chairman Carlos Ghosn Arrested Over Corruption Report

Nissan And Renault Chairman Carlos Ghosn Arrested Over Corruption Report

Chairman Carlos Ghosn was arrested on November 19 by Tokyo prosecutors on suspicion of under-reporting his income in violation of the Financial Instruments and Exchange Act, according to people close to the investigation.

The firm said it has also uncovered evidence of other "significant acts of misconduct" by Ghosn.

Nissan added: "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 Chairman Carlos Ghosn is expected to be ousted from his role at the company at the recommendation of CEO Hiroto Saikawa after allegations of serious misconduct that violate Japanese financial trading law.

The statement came after local media reported that Ghosn was to be questioned on Monday night by prosecutors in Tokyo and was to be arrested on violation of financial regulations including misreporting his income.

Mr Ghosn, a towering figure in the auto industry, will be sacked from the Japanese firm after a board meeting on Thursday, its chief executive said.

The scandal reverberated across the globe and abruptly threw into question Ghosn's future as leader of the Renault-Nissan-Mitsubishi alliance, which sold 10.6 million cars previous year, more than any other manufacturer.

Carlos Ghosn, chairman of the alliance between Nissan Motor Co., Renault SA and Mitsubishi Motors Corp., was arrested Monday over the alleged underreporting of his income and misuse of company funds, in an unprecedented scandal that sent shock waves through one of the world's top automaker groups.

Carlos Ghosn, chairman of Nissan and CEO and chairman of Renault, is set to be removed from Nissan after the vehicle company said it uncovered "significant acts of misconduct". Renault now owns a 43.4 percent stake in Nissan, which in turn owns a 15 percent stake in its French peer and a 34 percent in Mitsubishi Motors.

Born in Brazil, Ghosn joined Renault in 1996 before he assumed the title of chief operating officer for Nissan in 1999.

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"I'm anxious about the company's future", he said.

Nissan's statement said: "Nissan deeply apologises for causing great concern to our shareholders and stakeholders".

Mr Ghosn is also in charge of the Renault Nissan Mitsubishi alliance - the world's biggest car-selling group.

"We need to really look back at what happened, take it seriously and take fundamental countermeasures", he said.

Emmanuel Macron, the French President, said the government's focus was stability at the Alliance, particularly when it comes to French workers' jobs.

The Asahi newspaper said prosecutors had begun searching the offices of Nissan's headquarters and other locations on Monday. Renault, Nissan, Mitsubishi Motors and AVTOVAZ together sold 9.96 million vehicles in 2016 - more than one in nine cars worldwide.

He became Renault's CEO in 2005, pressing for further streamlining through joint procurement and development under the Nissan-Renault alliance.

Ghosn's arrest will undoubtedly shake up the auto industry, in which he has been a key vocal player for 40 years.

His triumph made him something of a national hero in a country where foreign CEOs of major Japanese companies are relatively rare.

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