Mitsubishi Motors replaces Ghosn as president, days after Nissan's dismissal

TOKYO (Reuters) – Mitsubishi Motors Corp. announced on Monday that its board of directors had dismissed Carlos Ghosn from his presidential duties, following his arrest and the ousting of his business partner. alliance, Nissan Motor Co, last week, for alleged financial misconduct.

The dismissal of Mr Ghosn following a unanimous vote on the board marks the end of his presidency of the Japanese automakers group. Only two years after being congratulated for offering a firm hand to Mitsubishi Motors following a cheating scandal in 2016, CEO Osamu Masuko will become acting president, said the automaker. .

"Ghosn has lost Nissan's trust" and it is "difficult for him to fulfill his duties", which caused the dismissal, said Mitsubishi Motors in a statement. Nissan holds a 34% majority stake in Mitsubishi Motors and has two executives.

This decision is explained by the dissatisfaction aroused by the role of the French partner Renault SA in the Franco-Japanese alliance that has lasted 19 years and which Ghosn was the engine.

Sealed in 1999 when Nissan was saved from bankruptcy, it was expanded in 2016 to include Mitsubishi and allowed members to jointly develop products and control costs. The alliance rivals Volkswagen AG (VOWG_p.DEand Toyota Motor Corp. for the ranking of the world's largest automaker.

Although Nissan has recovered and experienced rapid growth, it remains a junior partner in the shareholding structure. Renault holds a 43% stake in Nissan and the Japanese manufacturer holds a 15% non-voting interest in the French firm. And Nissan's sales are almost 60% larger than Renault's.

The top leaders of the alliance are meeting this week in Amsterdam to protect their joint operations from the fallout of the arrest of Ghosn as the power relationship between Nissan and Renault looms. Renault has refrained from dismissing him as Chairman and Chief Executive Officer.

Mitsubishi Motors had already planned to discuss its position in the alliance with Ghosn and, as a result of the ouster, it must consider focusing on regions and technology where it can remain competitive, said Masuko general manager to reporters after the meeting of the board of directors.

Cooperation among alliance members is needed in the face of the rise of new technologies such as automated vehicles and Internet-connected, he said.

Hiroto Saikawa, CEO of Nissan, told staff Monday that power was too focused with Ghosn and that better communication between board members and alliance leaders would help preserve independence and to create synergies between automakers, said a spokesman for Nissan.

Ghosn pleaded for a closer merger, including a complete merger between Renault and Nissan, at the instigation of the French government, despite strong reservations expressed by the Japanese firm.

Nissan fired Mr Ghosn at a high-stakes board meeting on Thursday after alleged that he had underestimated his income and used the company's money to personal purposes.

Ghosn denied the accusations, the state broadcaster NHK reported on Sunday.

Mitsubishi Motors is conducting its own investigation into Ghosn's potential wrongful acts and plans to announce the results at its December Board meeting.

While automakers pointed out that operations and operations were proceeding normally, Nissan has postponed the launch of its high-performance Leaf electric car in order to ensure that this important product unveiling can benefit from the coverage that it offers. 39 it deserves, "said a spokesman for Nissan.

Mitsubishi Motors shares closed up 3.3% ahead of the announcement, while Nissan advanced 1.8%, outperforming the market gain of 0.8%.