CARLOS Ghosn, one of the giants of the car industry, has been arrested over claims of financial misconduct.
Media reports said that the Nissan chairman will be dismissed from his role at a board meeting on Thursday.
Ghosn is also chairman and chief executive of the Renault-Nissan-Mitsubishi Motors strategic alliance. Renault said its board would meet soon. Board member Philippe Lagayette said the company was awaiting “precise information”.
Ghosn has been accused of “significant acts of misconduct”, including under-reporting his pay package and personal use of company assets.
Nissan chief executive Hiroto Saikawa told a news conference in Japan: “I feel despair, indignation and resentment, As the details are disclosed I believe that people will feel the same way as I feel.”
Saikawa said Nissan would now try to “stabilise the situation, and normalise day-to-day operations” for staff and business partners. Nissan said it had been conducting an internal investigation for several months, prompted by a whistleblower.
The company said it also planned to remove senior executive Greg Kelly, who had been “deeply involved” in the misconduct. Mr Kelly was described as a close aide to Ghosn.
Mitsubishi said in a statement: “In response to the arrest, and since the alleged misconduct is related to a corporate governance and compliance issue, it is to be proposed to the board of directors to promptly remove Ghosn.”
Ghosn has been at the very top of the motor industry for nearly 20 years, responsible for a dramatic turnaround at Nissan in the early 2000s when the car firm was on the verge of bankruptcy.
He began his career at Michelin in France before moving on to Renault. He joined Nissan in 1999 after Renault bought a controlling stake and became its chief executive in 2001.
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