The world woke up today to the news that chairman and chief executive officer of the alliance between Renault SA, Mitsubishi Motors Corp. and Nissan Motor Co., Carlos Ghosn, has been arrested at Tokyo, Japan, over “significant acts of misconduct,”.
The scandal involving the high-profile executive, echoed across the world, making Renault’s stock in Paris to fell more than 10%, their lowest in the last four years.
Nissan Representative Director Greg Kelly has also been arrested as a consequence of the internal investigation made by the Japanese automaker.
According to the statement released by Nissan, “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.
In 2001 Gosh became Nissan President and since then he´s known for saving Nissan from bankruptcy with his management style.
He´s also responsible and chairman of the three-way carmaking alliance, Renault-Nissan-Mitsubishi Motors, the world’s largest auto seller in 2018.
In April, 64-year-old Carlos Gosh stepped down as Nissan CEO, former co-CEO, Hiroto Saikawa succeeded him.
“This planned change will also allow me to devote more time and energy to managing 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,” Gosh said at the time.
Only a week ago, French President, Emmanuel Macron visited Renault’s Maubeuge plant with the presence of longtime (2005) Renault´s CEO and chairman, Carlos Gosh.
The French government is a major shareholder in Renault, and currently holds a 43.4% stake in the Japanese company.
“We are deeply sorry and regret the betrayal of trust of various related people, shareholders, and suppliers who have supported us for many years because Ghosn was leading Nissan,” he said.
The news has raised questions on the future of the Renault-Nissan-Mitsubishi alliance, to this moment, neither executives have made any comment on such allegations, but after the news conference held by Nissan, both executives, Carlos Ghosn, and Greg Kelly, are expected to be relieved from their respective positions on Thursday.
“Pending provision of precise information from Carlos Ghosn, Chairman and Chief Executive Officer of Renault, the above directors wish to express their dedication to the defense of Renault’s interest in the Alliance. The Board of Directors of Renault will be convened very shortly,” he added.
Next articleAnti-Plastic Straw Movement Trending In Indonesia, What’s Next?