Nissan chairman Carlos Ghosn arrested in Japan for alleged financial misconduct
The Nissan board will vote to oust Ghosn on Thursday.
Andrew KrokReviews Editor / Cars
Cars are Andrew's jam, as is strawberry. After spending years as a regular ol' car fanatic, he started working his way through the echelons of the automotive industry, starting out as social-media director of a small European-focused garage outside of Chicago. From there, he moved to the editorial side, penning several written features in Total 911 Magazine before becoming a full-time auto writer, first for a local Chicago outlet and then for CNET Cars.
chairman Carlos Ghosn has been arrested following allegations of financial misconduct.
In a statement, the automaker confirmed that it was conducting an internal investigation based on reports from a whistleblower, and that the investigation affects both Ghosn and Greg Kelly, Nissan's representative director.
The automaker claims its investigation has uncovered that both Ghosn and Kelly were underreporting compensation amounts on securities reports. The statement also says that Nissan found "significant acts of misconduct" elsewhere, including personal use of company assets, further implicating both Ghosn and Kelly.
According to the statement, Nissan CEO Hiroto Saikawa will ask the automaker's board of directors to remove Ghosn from his position as chairman. That vote will take place on Thursday, Reuters reports.
In terms of how much money Ghosn allegedly underreported, Reuters cites Japanese media reports saying that 10 billion yen (about $88 million) was reported as just 5 billion yen. Nissan said it is cooperating fully with Japanese investigators.
In addition to being Nissan's chairman, Ghosn is also the chairman of the Renault-Nissan-Mitsubishi Alliance. He's also the CEO of Renault and the chairman of
Motors. Bertel Schmitt reports that the Mitsubishi Motors press office says the company plans to remove Ghosn from his position, but as for Renault, it only said that it would convene a board meeting soon.
Ghosn started his automotive career at Michelin, progressing from a plant manager in France to the CEO of Michelin North America by 1990, at the age of 36. In 1996, Ghosn was hired as an executive vice president at Renault, where he oversaw the creation of the Renault-Nissan Alliance in an attempt to boost both automakers' bottom lines. The Alliance, which eventually swallowed up Mitsubishi as well, would grow to become one of the largest automakers in the world.
Update, 11:46 a.m. Eastern: Added new information about Ghosn's other current positions within the Alliance.
Driving the $1.5M Nissan GT-R50 by Italdesign concept