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Nissan Boss Mr. Ghosn and Representative Director Removed For Alleged " Serious Financial Misconduct"

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Nissan's Ghosn to Spend at Least 10 More Days in Custody

Tokyo, November 20, 2018; The NADA online wrote that The New York Times reported that Carlos Ghosn, one of the global auto industry's most powerful and admired leaders, will spend another 10 days in the custody of Japanese authorities, as his remarkable tumble from the top of the world's biggest car-making empire continues.

Japanese prosecutors arrested Mr. Ghosn, chairman of Nissan Motor, two days ago, when they boarded his corporate jet shortly after it landed in Tokyo's Haneda airport. He has yet to be charged with a crime. Source:

Regarding serious misconduct by Nissan Chairman and one representative director

YOKOHAMA, Japan - November 19, 2018: Based on a whistleblower report, Nissan Motor Co., Ltd. (Nissan) has been conducting an internal investigation over the past several months regarding misconduct involving the company's Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly.

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.

Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation. We will continue to do so.

As the misconduct uncovered through our internal investigation constitutes clear violations of the duty of care as directors, Nissan's Chief Executive Officer Hiroto Saikawa will propose to the Nissan Board of Directors to promptly remove Ghosn from his positions as Chairman and Representative Director. Saikawa will also propose the removal of Greg Kelly from his position as Representative Director.

Nissan deeply apologizes for causing great concern to our shareholders and stakeholders. We will continue our work to identify our governance and compliance issues, and to take appropriate measures.

Press release from Renault’s lead independent Director and committee chairs Concerning Carlos Ghosn

Boulogne-Billancourt, November 19, 2018 – Philippe Lagayette, as lead independent director of Renault, in liaison with Board Committee Chairs Marie-Annick Darmaillac and Patrick Thomas, have acknowledged the contents of Nissan’s press release of today.

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.

Cox Automotive Commentary: Nissan-Renault Chairman Carlos Ghosn Arrested in Tokyo

At a press conference in Japan today, Nissan Motor Company announced that its Chief Executive Officer Hiroto Saikawa has moved to dismiss Carlos Ghosn from his positions as Chairman and Representative Director of the company. Ghosn, a former CEO of Nissan and current Chairman of both Renault and Mitsubishi, had been the subject of an internal investigation at Nissan that uncovered “significant” financial misconduct. The Nissan board will gather on Thursday to vote on his removal from the company.
Representative Director Greg Kelly was also arrested in Japan and will be dismissed from the company, pending the board vote on Thursday.
Please find below commentary from Autotrader and Kelley Blue Book analysts. If you would like to speak to any of the Cox Automotive experts today on the changes at Nissan, feel free to reach out. We’d be happy to help.
Michelle Krebs, executive analyst Autotrader
Carlos Ghosn is a giant not only in the auto industry but also on the global business stage. After all, how many automotive executives have a super hero comic book made about them? A visionary, Ghosn was ahead of the game when it came to automotive consolidation, and he did it in a unique way. First came the alliance – not merger – between Nissan and Renault, a French-Japanese marriage that many doubted could succeed, but it did. Then eventually Mitsubishi joined the mix, creating one of the world’s largest auto companies.
On a more practical side, Ghosn never achieved his vision of an all-electric world, far from it. He also issued the edict that Nissan would capture 10 percent market share in the U.S. That led to bad and unprofitable behaviors including huge discounting and giant fleet sales that resulted in slumping resale values. Nissan also has had its share of quality problems as part of grinding out volume to snag market share.
Rebecca Lindland, executive analyst Kelley Blue Book
This is a shocking end to a storied and enormously successful career, but also reveals the vulnerabilities of a concentration of power at the top. Mr. Ghosn (never Carlos) masterminded the Renault-Nissan-Mitsubishi alliance, balancing three different companies with demanding elegance. The alliance will continue without him, but this misconduct will cause disruption and uncertainty at the top for a while.