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By YURI KAGEYAMA, AP Business Writer
TOKYO (AP) – The Mitsubishi Motors board meets on Monday to decide to overthrow Carlos Ghosn as president of the Japanese automaker, which is allied to Renault-Nissan.
Ghosn was arrested a week ago for alleged underreporting of his income by millions of dollars for five years. Nissan Motor Co., which had already ousted him from his position as chairman, said an internal investigation had revealed that Mr Ghosn had abused money and assets from the company. business.
Mitsubishi Motors Corp. announced that the seven members of its eight-member board of directors would meet later in the day.
Ghosn's arrest on November 19 marked an astounding downfall for a leader who dominated the Japanese auto industry for two decades and led Nissan's alliance with Renault SA, the French company.
Ghosn also led the addition of Mitsubishi in the alliance. Nissan took a 34% stake in Mitsubishi in 2016.
Tokyo prosecutors accused Ghosn of underreporting his income of 5 billion yen ($ 44 million) over five years.
It has not yet been possible to obtain comments from Ghosn on the charges. Japanese media, citing unidentified sources, reported that Ghosn and Greg Kelly, a leader who had been arrested for collaborating with Ghosn, claimed their innocence.
Neither Ghosn nor Kelly were charged.
Under Japanese law, a suspect may be held in custody for up to three weeks on alleged charge without charge being laid.
Renault has retained Ghosn as managing director. Given the composition of the board, Mitsubishi will oppose Little Ghosn's ouster.
The board consists of Mr. Ghosn, Mitsubishi Motors Managing Director, Osamu Masuko, two Nissan people, two Mitsubishi Group companies and two foreigners, a writer and an academic.
Concerns are growing over the future of the alliance between Renault and Nissan. The future of the alliance with Mitsubishi, being newer, could be even more precarious.
Alliances often benefit automakers as they share technology, auto parts and supplier and sales networks. Sales volume tends to reduce costs.
Analysts believe that this sharing is gaining importance in recent years, as companies develop electric vehicles, Internet connectivity and artificial intelligence for motor vehicles.
Yuri Kageyama is on Twitter at https://twitter.com/yurikageyama
On Instagram at https://www.instagram.com/yurikageyama/?hl=en
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, disseminated, rewritten or redistributed.
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