Carlos Ghosn: Nissan president arrested after an investigation revealed "serious acts of misconduct"

This staggering announcement was right of a powerful global alliance that destroyed the shares of Nissan (NSANY) and Renault (RNSDF), under the chairmanship of Mr. Ghosn.

With Japanese Mitsubishi Motors (MMTOF), Nissan and Renault are the largest automotive alliance in the world, one in nine cars sold worldwide. The three companies employ more than 470,000 people in nearly 200 countries.

Nissan said in a statement that it was investigating Mr Ghosn, a veteran of the auto industry for 40 years and a board member for months. following an alert launcher report.

The company stated that its The investigation revealed that Mr. Ghosn, age 64, and his other board member, Greg Kelly, were underreporting Mr. Ghosn's compensation. "Many other significant acts of misconduct have been discovered, such as the personal use of the company's assets," he added.

As a result, Chairman and CEO Saikawa will propose to the Nissan Board of Directors to "promptly remove Mr. Ghosn from his position as Chairman and Director Representative," at a meeting held on Thursday announced the group. He will also try to remove Kelly from the board.

Renault and Nissan dive

Actions in Renault, where Ghosn is president and CEO, has plunged up to 13% in Paris. Renault has announced that its board of directors will meet "very soon" to discuss Nissan's revelations.

French President Emmanuel Macron said the government, which holds 15% of Renault's capital, was watching closely.

"The state, as [Renault] shareholder, will be extremely vigilant about the stability of the alliance and the group, "said Macron during a visit to Belgium.

Nissan's announcement comes after closing trades on its stock in Tokyo. But its shares fell by 10% at the Frankfurt Stock Exchange.

"Nissan deeply apologizes for raising strong concerns among our shareholders and our stakeholders," the statement said. "We will continue our work to identify our governance and compliance issues and to take appropriate action."

Global shock waves

Ghosn is also president of Mitsubishi Motors. The Japanese company said it was proposing that its board of directors "promptly" remove Ghosn's withdrawal from this position.

Nissan's revelations took place after Japan NHK newspaper and broadcaster Asahi Shimbun said prosecutors were questioning Ghosn, suspected of not reporting his salary, and that he could stop him.

The prosecutor's office did not respond to a request for comment outside normal office hours. CNN could not immediately reach Ghosn, Kelly or their representatives for comment.

Nissan said it paid Mr. Ghosn a salary of 1.1 billion yen ($ 9.7 million) during the fiscal year ended March 2017, his last as CEO. In its annual report, Nissan does not indicate the compensation of the members of the board of directors.

A spokesman for the company did not immediately respond to a request for additional information on Ghosn's compensation.

A career across the continents

Born in Brazil, Ghosn began his career at the French Michelin tire manufacturer in 1978, before embarking on the company's operations in North America.

He joined Renault in 1996. After the French manufacturer established its alliance with Nissan in 1999, he became the director of operations of the Japanese company, helping to overcome the financial crisis.

The turnaround has earned him the nickname "The killer cost."

Ghosn was promoted to Nissan's CEO in 2001, and made the unusual decision to become Renault's CEO in 2005. This made him the first executive to simultaneously lead two Fortune Global 500 companies.

After Nissan took a 34% stake in Mitsubishi Motors in 2016, Ghosn named Nissan CEO Saikawa.