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Nissan's board members were on the verge of overturning disgraced tycoon president Carlos Ghosn on Thursday after his dramatic arrest for financial misconduct sparked a shockwave in the auto sector and the world of cars. business.
Ghosn is accused of underreporting his multi-million dollar earnings and numerous other financial irregularities, in a dramatic fall from the once-revered auto industry titan.
This 64-year-old Brazilian-born mogul is believed to have turned the Japanese brand into an alliance with Renault and Mitsubishi Motors, which last year sold 10.6 million cars, more than any other company in the world. .
Ghosn's fate seems almost sealed after his hand-picked replacement as CEO, Hiroto Saikawa, launched an astonishing adventure at his mentor's after his arrest Monday at the Tokyo airport as he landed in his private jet.
Saikawa said that "too much authority" had been placed in the hands of the president and lamented the "dark side of the Ghosn era", while he was summoning the board of directors to send it back.
Seven Board members will vote on Ghosn's motion to revoke, which must be passed by a simple majority. Insiders say that Saikawa would probably not have suggested the ouster if he was not sure of the support of his colleagues on the board.
"This would not have been proposed if there was any doubt and the results of the investigations had already been presented to the members of the board of directors," AFP told AFP. a source close to society.
The appointment of a new chairman will take some time as it needs to be approved by shareholders, but Saikawa is considered a favorite.
– Spartan conditions & # 39; –
Ghosn is being held in a Tokyo detention center and has not been seen in public or commented since his arrest.
He received Thursday the visit of Brazilian consul Joao de Mendonca, who told AFP that Mr Ghosn "looked very good, in good health".
On Wednesday, local media reported that the prosecutors had successfully requested the extension of her custody for an additional 10 days as they were interrogated.
Prosecutors believe that Ghosn and a US executive, Greg Kelly, "conspired to minimize Ghosn's revenue five times between June 2011 and June 2015", bringing total revenue of five billion yen ($ 44 million) Current 10 billion.
According to local media, the authorities also believe that Nissan has a case to deal with after a multi-month investigation by an alerting launcher, which revealed years of financial fraud by Ghosn, including abuse. corporate assets.
Public broadcaster NHK said Nissan had paid "huge sums of money" to provide Ghosn with luxury homes in Rio de Janeiro, Beirut, Paris and Amsterdam "without a legitimate business motive".
Ghosn had the reputation of being an uncompromising workaholic, who was not hesitant about closing factories and cutting jobs. His nickname "The Cost Killer" in France, where 47,000 employees work for Renault.
But his exorbitant salary and rowdy lifestyle – at odds with Japanese corporate culture – have fired and his current home will be far from his expensive and customary environment.
"In principle, he will be alone in a cell," Ayano Kanezuka, a lawyer, told AFP.
"There is everything you need, heating, a bed but the conditions are spartan," said Kanezuka's colleague, Lionel Vincent.
– "Couple Divorce" & # 39; –
The arrest has raised questions as to whether the alliance of Nissan, Renault and Mitsubishi Motors can survive without Ghosn, considered the cement of its creation, which employs about 450,000 people worldwide.
According to the Financial Times, the fall of grace occurred while Ghosn was working on a full merger of Nissan and Renault.
The leaders of the Japanese firm, which ended up being the most profitable player of this partnership, opposed this assertion. Ghosn's departure could serve as a pretext to rebalance the alliance in favor of Nissan.
Renault delayed Ghosn's release, noting that Nissan had not disclosed the evidence gathered to its sister company.
The French financial daily Les Echos wrote in an editorial on Wednesday that the next alliance meetings "will surely be explosive".
"Even though tensions are easing, trust between companies has been at least partially broken."
The governments in Paris and Tokyo are struggling to contain the fallout of this arrest. President Emmanuel Macron said France would be "extremely vigilant" about the stability of Renault and the alliance.
According to analysts, despite the obvious tensions between the two companies headquartered 10,000 kilometers away from each other, neither company has the financial capacity to make the heavy investments in the capital. electric vehicles regarded as the future of the industry.
"It would be as if a couple had divorced after age 20. It would be complicated, very expensive and hard to do," said Gaetan Toulemonde, an analyst at Deutsche Bank.
"Honestly, I do not know if it's even possible."
burs-ric / qan
Carlos Ghosn has already dominated Nissan
The crisis seemed to worsen more and more for Nissan, according to the Asahi Shimbun newspaper which, according to prosecutors, believes the firm also has a record to resolve. Nissan and the authorities refused to comment
Ghosn detained under Spartan conditions in Tokyo detention center
Japanese authorities extend 10-day detention of Ghosn, media reported on Wednesday
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