Nissan board fires chairman after arrest
TOKYO — Nissan Motor Co. fired Carlos Ghosn as chairman Thursday, curtailing the powerful executive’s nearly two-decade reign at the Japanese automaker after his arrest for alleged financial improprieties. In an hourslong meeting, the company’s board of directors voted unanimously to dismiss Ghosn as chairman and as a representative director, Nissan said in a statement. It said its own internal investigation, prompted by a whistleblower, found serious misconduct including underreporting of his income and misuse of company assets.
It was a stunning downfall for one of the biggest figures in the auto industry. Ghosn had helped drive turnarounds at both France’s Renault SA and at Nissan and then managed an alliance between them that sold 10.6 million cars last year, besting its rivals.
Renault is still reeling from Ghosn’s Monday arrest, and its share price has yet to recover. Its acting chief, deputy CEO Thierry Bollore, spoke publicly Thursday night for the first time since Ghosn was sidelined, and sought to soothe markets, car buyers and his employees by promising continuity.
In a video released by Renault, Bollore said the carmaker still plans to release several new models next year. Acknowledging the “particular situation” the company is in, he pledged his “full commitment” to Renault’s 180,000 workers and its partners and customers. Renault’s board decided not to fire Ghosn, instead installing temporary leadership.
The French government, which owns 15 percent of Renault, is also worried. French Finance Minister Bruno Le Maire said Thursday that France has yet to receive information from Japan about what Ghosn is accused of and insisted on “respect for the presumption of innocence.”
Nissan said in a statement filed to the Tokyo Stock Exchange that its investigation uncovered misuse of company investment funds and expense money for personal gain.
The Wall Street Journal, citing an anonymous source close to Nissan’s investigation, reported that Ghosn used company funds to buy personal residences and enrich his sister.
Another Nissan executive, Greg Kelly, was arrested in Japan on suspicion of collaborating in the wrongdoing and also will be dismissed as a representative director, Nissan said.
Ghosn, 64, is suspected of underreporting $44.6 million in income from 2011-15, according to Tokyo prosecutors.
Ghosn and Kelly will remain on Nissan’s board for now as that decision will be up to shareholders.
Ghosn is also chairman at Mitsubishi Motors Corp., a smaller Japanese automaker that’s partnering with the Renault-Nissan alliance and plans to hold a board meeting next week.