Nissan has been conducting an internal investigation into Ghosn for months.
Renault-Nissan-Mitsubishi Chairman Carlos Ghosn could be ousted from his role after reports of serious violations of Japan’s financial laws. Nissan confirmed it had been investigating allegations that Ghosn had not reported $44 milion (5 billion yen) of income over the course of five years, along with other violations. The investigation came after a whistleblower report alleged improper practices by Ghosn and Nissan Representative Director Greg Kelly, and the Japanese automaker said it had been fully cooperating with authorities.
Nissan said in a statement, “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 Ghosn’s compensation.”
Nissan CEO responds
BBC News reported Nissan CEO Hiroto Saikawa’s response to Ghosn’s arrest. “I feel despair, indignation and resentment. As for the details are disclosed I believe people will feel the same way as I feel today.” Nissan’s board of directors reportedly plans to oust both Ghosn and Kelly from their roles, as they were both involved in the alleged misconduct. Ghosn has been a major figure in the automotive sector, as he’s been largely credited with turning Nissan around from near bankruptcy to become one of the biggest players in the industry. Ghosn was CEO of the Renault-Nissan Alliance since June 2001 and remained in that position until he stepped down in 2017. He’s since been chairman of the board until Saikawa proposed their removal today.
At the moment, it isn’t clear exactly what legal consequences Ghosn or Kelly could face for their alleged actions. We’ll provide updates as soon as more information is available.