Nissan to recall 150000 cars due to improper checks

Carlos Ghosn, former Nissan head, to be indicted Monday: Report

Carlos Ghosn, former Nissan head, to be indicted Monday: Report

Tokyo prosecutors plan to indict former Nissan Motor Co Ltd Chairman Carlos Ghosn on Monday for financial misconduct, the Nikkei business daily reported, ratcheting up their case against the auto tycoon.

Several employees admitted they carried out "improper" tests on brake and other systems before shipment, the newspaper said, without specifying how many cars were affected.

Nissan's Vice President Seiji Honda said that a recall will be issued next week and measures will be taken to prevent such irregularities, reported AP.

Since October a year ago, Nissan has recalled more than 1 million vehicles in Japan because of improper inspections.

But he added: 'We have not established any link between that and our latest problem with inspections'.

The report comes amid speculation that Ghosn and his right-hand man Greg Kelly will face new allegations related to under-reporting of the vehicle giant's compensation.

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In addition, prosecutors will indict former Representative Director Greg Kelly on Monday, when the pair's detention period expires.

Ghosn was arrested for allegedly conspiring to understate his income by about half of the actual 10 billion yen ($88.66 million) over five years from 2010.

Ghosn denies any wrongdoing.

In terms of specific charges, Reuters cites Nikkei's claim that all three entities will be indicted for underreporting salaries in five separate reports, and it's possible that both Ghosn and Kelly will be rearrested in connection with misstatements in the years that followed the underreporting of salaries.

In Japan, Ghosn was celebrated as a charismatic business leader who saved Nissan from the brink of failure and rebuilt it as a money-maker in the alliance with Renault.

Nissan has begun the process of choosing Ghosn's successor, with the final decision expected on December 17.

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