Nissan's Ghosn to be arrested in Japan for under-reporting salary

Lloyd Doyle
November 19, 2018

Nissan is to propose dismissing Mr Ghosn and board member Greg Kelly at a board meeting, according to Japan's NHK.

But Japanese newspapers reported this morning that he is set to be arrested in Tokyo on suspicion of manipulating financial reports. Earlier, several outlets had reported he was being questioned.

Ghosn is credited with helping engineer a remarkable turnaround at Nissan over the past two decades, resuscitating the Japanese automaker from near bankruptcy after he was sent in by Renault.

The newspaper claims prosecutors had begun searching the offices of Nissan's headquarters and other locations on Monday.

"Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation".

Shortly after the release of the reports, Nissan announced it was seeking the removal of Mr Ghosn over claims of "serious misconduct".

The Nissan-Renault-Mitsubishi group is among the biggest auto alliances in the world, selling about 10 million vehicles a year.

Prosecutors were prepared to arrest Ghosn, 64, after further questioning, the sources said.

Shares of the carmaker fell as much as 6.2 percent in Paris, while Nissan global depositary receipts sank more than 11 percent.

Nissan's German-listed securities 7201.TG plunged 12 percent. "It is likely to have a negative impact on its brand image", he told AFP.

Brazilian-born, of Lebanese descent and a French citizen, Ghosn began his career at tyre manufacturer Michelin in France, before moving on to Renault. But he was expected to remain chief executive of Renault and to continue in overall charge of the Alliance for the next few years.

Ghosn became chairman of Mitsubishi Motors in December 2016.

In June, Renault shareholders approved Ghosn's €7.4 million (US$8.45 million) compensation for 2017. In addition to this, he received 9.2 million euros in his final year as Nissan chief executive.

For the past two decades, he has maintained an unusually high profile in a nation where foreign chief executives of major Japanese companies are still relatively rare. He has not yet commented on the allegations.

Other reports by Iphone Fresh

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