Ghosn gone: Nissan drives out chairman after arrest

Posted - November 27 2018 13:19

Ghosn gone: Nissan drives out chairman after arrest

Chairman Carlos Ghosn is now suspected of underreporting his executive remunerations by several billion yen during a three-year period from fiscal 2015, on top of allegations of similar concealment of part of his salaries in preceding years that led to his arrest, according to people familiar with the matter.

Both Nissan and Renault have said Ghosn's arrest won't affect the alliance. Greg Kelly has also been removed as representative director. The board of directors of the giant of the automotive Nissan, which met on Thursday to decide on the future of its iconic president, Carlos Ghosn, has unanimously chose to revoke it.

Exactly how that might occur is unclear, but the idea of an outright merger between Renault and Nissan a deal Ghosn had advocated for over opposition from Saikawa and others is nearly certainly dead.

Nissan said it would set up a special committee to improve corporate oversight as well as find a replacement for Ghosn.

Renault (RNSDF) earlier this week stopped short of removing Ghosn as its CEO and chairman as it waited for more details of the criminal investigation.

It did not state whether a new case would also concern Kelly.

A nightmare scenario for Nissan could arise if prosecutors fail to bring a successful case against Ghosn and he returns as Renault chairman.

The Brazilian-born French tycoon is now in a Tokyo jail awaiting charges. The structure has been controversial in Japan as Nissan outgrows Renault in sales and profits. According to the Yomiuri, the biggest draw of the japanese press, which also cites anonymous sources, the internal investigation conducted by Nissan revealed that ceo Carlos Ghosn had asked since 2002 that a sum of approximately $ 100,000 per year to be paid to her older sister to pay for an "activity advisory" sham. Renault owns a 43 percent voting stake in Nissan, which owns 15 percent of Renault - and no voting rights. He is credited with being responsible for forming the Renault-Nissan Alliance and for taking strong measures to help turn around Renault.

That is probably unlikely, as the costs of the alliance failing would be huge. Travis Lundy, an analyst at investment research network Smartkarma, estimates that the companies save about 5 billion euros ($5.7 billion) every year by sharing technology and other resources.

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