What's the news?
Carlos Ghosn, one of the most iconic and influential figures in the global car industry, is being investigated for financial irregularities and is set to lose his position as Chairman at Nissan. He also serves as chief executive at Renault, but that position is currently under evolution by the board.
The allegation is that Ghosn has not fully disclosed his remuneration package for several years. In addition to Ghosn, Greg Kelly, a representative director, is also being investigated for similar reasons. Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation.
The news came to light following Ghosn's arrest after landing in Japan this morning. It is believed that a tip-off from a whistleblower began an investigation that started several months ago. At a press conference today, Hiroto Saikawa, Nissan CEO, suggested that a sum of up to €38 million is in question along with "personal use" of company assets.
Ghosn helped to mastermind the saving of Renault from near-failure in the mid-nineties and has steered it towards becoming one of the largest groups in the world. Nissan's alliance with Renault and more recently, Mitsubishi, is not believed to be under threat at this stage. It is understood that Mitsubishi, where Ghosn is also a chairman, is investigating his conduct before deciding if they should remove him from the position.