Nissan's Cost Killer chief Carlos Chosn arrested, to be fired

Carlos Ghosn who saved Nissan from collapse and brought it together with Renault SA and Mitsubishi Motors was detained Monday in Tokyo

Nissan's Cost Killer chief Carlos Chosn arrested, to be fired

Ghosn, a rare foreign top executive in Japan, is regarded as one of the leading figures in the vehicle industry, having turned Nissan around from near bankruptcy.

Carlos Ghosn, chairman of Nissan and CEO and chairman of Renault, is set to be removed from Nissan after the auto company said it uncovered "significant acts of misconduct".

The company is set to hold a press conference at 9pm in Tokyo.

Also on the chopping block is Nissan representative director Greg Kelly, who was discovered to be "deeply involved" in reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount.

"Numerous other significant acts of misconduct" including "personal use of company assets", were also found.

The news comes as a shock in Japan where Ghosn, a rare foreign top executive, is well-regarded for having turned Nissan around from near-bankruptcy. Nissan seeks to remove both Ghosn and Kelly.

"Saikawa will also propose the removal of Greg Kelly from his position as representative director".

Following that report, Nissan global depository receipts fell more than 11 per cent in Japan, while shares in Renault have dropped by more than five per cent, reaching their lowest level in almost four years.

Nissan's Cost Killer chief Carlos Chosn arrested, to be fired

Nissan said it was providing information to the prosecutors and co-operating with their investigation. Earlier, several outlets had reported he was being questioned.

The Tokyo District Public Prosecutors Office declined to comment. "We will continue our work to identify our governance and compliance issues, and to take appropriate measures", it said.

The alliance sold 5.54 million vehicles worldwide in the first six months, up 5 percent from the same period a year ago, according to data from the three companies.

The allegations are a serious blow at a time when Nissan and another alliance member, Mitsubishi Motor Co., are still overcoming scandals over their quality testing reporting. At Renault, his package for 2017 was narrowly passed by Renault shareholders, but only after he agreed a 20% reduction.

A spokesman for Renault couldn't be reached for immediate comment. Before joining Renault, Ghosn worked for Michelin North America.

Nissan said it would brief reporters on Monday evening.

The carmakers have given themselves two years to decide on a possible merger between them or find an alternative mechanism to enhance their partnership, Bloomberg News reported in July.

A Brazilian-born French national, Ghosn revived Renault as executive vice president from 1996 to 1999. They raided Nissan's headquarters in Yokohama, near Tokyo.

Honda announces new Passport SUV will be built in Alabama
Significantly, the CR-V is now Honda's best-selling American model, having pushed past both the Civic and Accord nameplates. The Honda Passport crossover has been teased ahead of its full debut later this month at the 2018 Los Angeles motor show .

Latest News