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Nissan chairman Carlos Ghosn was arrested in Tokyo this week on charges of financial misconduct. Photo AP / Michel EulerASSOCIATED PRESS
Nissan has just sacked Carlos Ghosn. The former, charismatic CEO, highly regarded for rescuing Nissan and creating the Renault-Nissan Alliance, was fired tonight at Nissan's headquarters in Yokohama, Japan, after a board meeting. 5-hour administration organized by an emergency marathon to decide the fate of Ghosn and the Renault-Mitsubishi. the future of the alliance.
The arrest of Ghosn following accusations of financial misconduct caused a shock wave in the global automotive industry last Monday after the announcement of his arrest in Tokyo. Ghosn was Chairman of the Board of Nissan, Chairman of the Board of Renault and Chairman of the Board of Mitsubishi, an alliance that sold 10.6 million vehicles last year, more than any other manufacturer. His arrest led to a fall in stock prices of the three companies on Tuesday at the Tokyo Stock Exchange. A second officer, Greg Kelly, has also been arrested on suspicion of financial mismanagement.
At a press conference held the day after the arrest, Nissan CEO Hiroto Saikawa said that Ghosn had been arrested by the authorities after arriving in Japan earlier in the day . Ghosn and Kelly have been charged with multi-million dollar offenses that were discovered during a multi-month investigation initiated by a whistleblower who allegedly sought immunity in exchange for their incriminating evidence.
In what is becoming a Japanese-style Shakespearean play, we learn about the magnitude of Ghosn's alleged financial misconduct as more and more details emerge each day. Saikawa said three types of misconduct had been discovered: an underreporting of his income from financial authorities for $ 40 million over five years, the use of investment funds for personal purposes and the unlawful use of business expenses. The revenues he reported to the authorities, 735 million yen ($ 6.5 million), are four times higher than those received by the president of Toyota.
Earlier this week, Saikawa said he would recommend to the board of directors, who met on Thursday, that Mr Ghosn be fired. At 9 pm that night, it was official, Ghosn was gone. "Needless to say, it's an act that can not be tolerated by society," Saikawa said. He described Ghosn and Kelly, a manager also arrested on Monday, as the "brains" of a long-running scheme designed to mislead financial authorities. He gave few details, citing the ongoing investigation of prosecutors.
As Saikawa says, the two leaders may have been "brains" in terms of misbehavior, but the growing tension between Nissan and Renault over disproportionate corporate earnings and Renault's controlling stake in the alliance seem to have led to this situation, and the denouncer revelation.
Everything really comes from the structure of this rare alliance between Nissan, Renault and Mitsubishi. The French government owns 15% of Renault, while Renault holds a 43% stake in Nissan. This unbalanced relationship in itself provoked tensions between Nissan and Renault at a time when, as many local media reported, Mr Ghosn, at the request of the French government, had called for closer integration of two tightening of French control over Japanese society. Nissan, the much more profitable partner, does not want greater French control.
"If you compare company values, Nissan accounts for about $ 39 billion and generates more than 50% of the alliance's revenue and sales, while Renault is around $ 15 billion. So, alone, Renault is not worth much, "says Professor David Bailey of Aston Business School. "For me, it sounds a lot like a Nissan coup to suppress Ghosn."
Although this qualification can be discussed, the removal of Ghosn as CEO has, at least temporarily, eliminated the pressure for a possible merger with Renault.
The seriousness of the charges against Ghosn was highlighted when a large Japanese television channel described in detail the situation in which Ghosn is currently located. According to the Japanese media, during his detention, the authorities inspected his tie, his belt and even his private parts. to make sure that he was not hiding anything potentially dangerous. According to a report, Japanese prosecutors must ensure that Mr. Ghosn has no suicide pill or anything that could harm him. He must wear an outfit specifically assigned to the accused and may only take meals prepared by the detention center.
The arrest of Ghosn is a shock for many Japanese, especially since the vast majority of the population considers him the savior of Nissan. If Ghosn had not taken over the business in 2001 and launched its radical cost-cutting and stabilization measures, then Nissan would have gone bankrupt. In the ensuing years, he figured as a protagonist in a popular comic book, bringing Mitsubishi together under the umbrella of the Renault-Nissan Alliance, and he met with the Japanese emperor at two times.
The Tokyo District Court has approved the extension of Ghosn's detention for the next 10 days. Therefore, no one can guess what will be the saga of this saga, how it will affect the alliance and the punishment that will be imposed. If the Japanese, who want Ghosn to be prosecuted, win the case, the former CEO of Nissan could be sentenced to a heavy prison sentence. However, if he is released on bail and allowed to return to France or elsewhere, he can then avoid any conviction. On the other hand, the French government, which sent its representative to Japan, his ambassador, to visit Ghosn in detention, did not declare Ghosn guilty of a crime, according to the French minister Finance, Bruno Mayor. For its part, Renault does nothing against Ghosn until he has the irrefutable proof of the commission of his crimes. Like a great novel by John Grisham, stay tuned, as this story will only improve.
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Nissan chairman Carlos Ghosn was arrested in Tokyo this week on charges of financial misconduct. Photo AP / Michel EulerASSOCIATED PRESS
Nissan has just sacked Carlos Ghosn. The former, charismatic CEO, highly regarded for rescuing Nissan and creating the Renault-Nissan Alliance, was fired tonight at Nissan's headquarters in Yokohama, Japan, after a board meeting. 5-hour administration organized by an emergency marathon to decide the fate of Ghosn and the Renault-Mitsubishi. the future of the alliance.
The arrest of Ghosn following accusations of financial misconduct caused a shock wave in the global automotive industry last Monday after the announcement of his arrest in Tokyo. Ghosn was Chairman of the Board of Nissan, Chairman of the Board of Renault and Chairman of the Board of Mitsubishi, an alliance that sold 10.6 million vehicles last year, more than any other manufacturer. His arrest led to a fall in stock prices of the three companies on Tuesday at the Tokyo Stock Exchange. A second officer, Greg Kelly, has also been arrested on suspicion of financial mismanagement.
At a press conference held the day after the arrest, Nissan CEO Hiroto Saikawa said that Ghosn had been arrested by the authorities after arriving in Japan earlier in the day . Ghosn and Kelly have been charged with multi-million dollar offenses that were discovered during a multi-month investigation initiated by a whistleblower who allegedly sought immunity in exchange for their incriminating evidence.
In what is becoming a Japanese-style Shakespearean play, we learn about the magnitude of Ghosn's alleged financial misconduct as more and more details emerge each day. Saikawa said three types of misconduct had been discovered: an underreporting of his income from financial authorities for $ 40 million over five years, the use of investment funds for personal purposes and the unlawful use of business expenses. The revenues he reported to the authorities, 735 million yen ($ 6.5 million), are four times higher than those received by the president of Toyota.
Earlier this week, Saikawa said he would recommend to the board of directors, who met on Thursday, that Mr Ghosn be fired. At 9 pm that night, it was official, Ghosn was gone. "Needless to say, it's an act that can not be tolerated by society," Saikawa said. He described Ghosn and Kelly, a manager also arrested on Monday, as the "brains" of a long-running scheme designed to mislead financial authorities. He gave few details, citing the ongoing investigation of prosecutors.
As Saikawa says, the two leaders may have been "brains" in terms of misbehavior, but the growing tension between Nissan and Renault over disproportionate corporate earnings and Renault's controlling stake in the alliance seem to have led to this situation, and the denouncer revelation.
Everything really comes from the structure of this rare alliance between Nissan, Renault and Mitsubishi. The French government owns 15% of Renault, while Renault holds a 43% stake in Nissan. This unbalanced relationship in itself provoked tensions between Nissan and Renault at a time when, as many local media reported, Mr Ghosn, at the request of the French government, had called for closer integration of two tightening of French control over Japanese society. Nissan, the much more profitable partner, does not want greater French control.
"If you compare company values, Nissan accounts for about $ 39 billion and generates more than 50% of the alliance's revenue and sales, while Renault is around $ 15 billion. So, alone, Renault is not worth much, "says Professor David Bailey of Aston Business School. "For me, it sounds a lot like a Nissan coup to suppress Ghosn."
Although this qualification can be discussed, the removal of Ghosn as CEO has, at least temporarily, eliminated the pressure for a possible merger with Renault.
The seriousness of the charges against Ghosn was highlighted when a large Japanese television channel described in detail the situation in which Ghosn is currently located. According to the Japanese media, during his detention, the authorities inspected his tie, his belt and even his private parts. to make sure that he was not hiding anything potentially dangerous. According to a report, Japanese prosecutors must ensure that Mr. Ghosn has no suicide pill or anything that could harm him. He must wear an outfit specifically assigned to the accused and may only take meals prepared by the detention center.
The arrest of Ghosn is a shock for many Japanese, especially since the vast majority of the population considers him the savior of Nissan. If Ghosn had not taken over the business in 2001 and launched its radical cost-cutting and stabilization measures, then Nissan would have gone bankrupt. In the ensuing years, he figured as a protagonist in a popular comic book, bringing Mitsubishi together under the umbrella of the Renault-Nissan Alliance, and he met with the Japanese emperor at two times.
The Tokyo District Court has approved the extension of Ghosn's detention for the next 10 days. Therefore, no one can guess what will be the saga of this saga, how it will affect the alliance and the punishment that will be imposed. If the Japanese, who want Ghosn to be prosecuted, win the case, the former CEO of Nissan could be sentenced to a heavy prison sentence. However, if he is released on bail and allowed to return to France or elsewhere, he can then avoid any conviction. On the other hand, the French government, which sent its representative to Japan, his ambassador, to visit Ghosn in detention, did not declare Ghosn guilty of a crime, according to the French minister Finance, Bruno Mayor. For its part, Renault does nothing against Ghosn until he has the irrefutable proof of the commission of his crimes. Like a great novel by John Grisham, stay tuned, as this story will only improve.
