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November 23, 2018

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Home » Business » Auto

Nissan gives Ghosn boot, recommits to Renault

Nissan board members have voted unanimously to sack Carlos Ghosn as chairman.

Ghosn stands accused of under-reporting his income by millions of dollars and a host of other financial irregularities, after a months-long internal Nissan probe following a whistleblower report.

His removal as chairman represents an astonishing turnaround for the titan of the auto sector who revived the Japanese brand and forged an alliance with Renault and Mitsubishi Motors, which sold a combined 10.6 million cars last year — more than any other firm.

“After reviewing a detailed report of the internal investigation, the board voted unanimously ... to discharge Carlos Ghosn as Chairman of the Board,” Nissan said.

Nissan also stressed its “long-standing ... partnership with Renault remains unchanged” and that “the mission is to minimise the potential impact and confusion on the day-to-day cooperation” between the firms.

Prosecutors intercepted the Brazil-born tycoon on Monday as he landed in Tokyo on a private jet, accusing him and another executive Greg Kelly of understating the chairman’s income by US$44 million between June 2011 and June 2015.

Nissan said it would study the creation of a “special committee” to take advice from a third party on improving its internal governance and executive pay.

Ghosn is being held in custody in a Tokyo detention centre and has not been seen in public nor made any comments since his arrest.

He received a visit from Brazilian consul Joao de Mendonca yesterday who said that Ghosn “sounded very well, in good health.”

However, his conditions are likely to be a far cry from what the millionaire businessman is used to.

Inmates at the center are typically allowed 30 minutes exercise per day and only two baths a week.

Ties and strings are removed to prevent suicide attempts while former guards and lawyers said Ghosn was almost certain to be held in a cramped cell on his own.

Deputy Chief Prosecutor Shin Kukimoto said that the type of crime Ghosn is accused of is “one of the most serious types of crime” under Japan’s Financial Instruments Act, and Ghosn could face a 10 million yen fine (US$88,000) and/or a 10-year prison sentence.




 

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