Mitsubishi fires Ghosn as fallout widens

Ghosn’s case adds to worries about future of Renault, Nissan and Mitsubishi alliance

The board of Japanese automaker Mitsubishi Motors, which is allied with Renault and Nissan, voted unanimously yesterday to dismiss Carlos Ghosn as its chairman following his arrest last week.

Prosecutors arrested Ghosn on November 19 on suspicion he under-reported his income by $44 million (Dh161 million) over five years.

Nissan Motor Co. ousted him as its chairman last week, saying an internal investigation prompted by a whistle-blower also found Ghosn misused company money and assets.

Mitsubishi Motors CEO Osamu Masuko, chosen by the board as acting chairman pending a shareholders’ meeting, said Ghosn would not be able to perform his duties, considering his arrest and Nissan’s dismissal of him as chairman.

Masuko insisted the threeway alliance will persevere, saying it’s critical for the automakers’ futures, especially in working together on new technologies.