Nissan Board Decides to Refer Ghosn to the Presidency

Yuri Kageyama, writer specializing in commercial affairs

Update

9:39 pm PST, Wednesday 21 November 2018

TOKYO (AP) – Nissan 's board of directors will meet on Thursday to decide to fire president Carlos Ghosn following his suspected arrest of under – reporting his income.

Earlier this week, the alliance partner, Renault, decided to retain him as general manager, but appointed Thierry Bollore, chief operating officer, as acting chief.

Nissan Motor Co. chief executive Hiroto Saikawa said Ghosn should be ousted. Ghosn is suspected of under-reporting $ 44.6 million in revenue between 2011 and 2015, according to Tokyo attorneys.

Nissan's board of directors is comprised of nine members, including Ghosn and a representative representative named Greg Kelly, who was also arrested on Monday because he was suspected of collaborating with Ghosn in forgeries. financial reports. A majority, at least four out of seven, is needed to remove them.

Ghosn and Kelly will remain on Nissan's board, regardless of the result of Thursday's vote, which is the decision of shareholders. No date has been set for a meeting of shareholders.

Mr. Ghosn is also Chairman of Mitsubishi Motors Corp., a Japanese manufacturer that partners with Nissan. The smaller automaker said it was organizing a council meeting next week.

Ghosn and Kelly have been in detention since their arrest on Monday.

Under Japanese law, suspects can be detained for up to 20 days by possible charge without formal indictment. Extra charges may be tagged, resulting in longer holdings. Neither has been charged so far.

The maximum penalty for violations of finance and foreign exchange laws is 10 years imprisonment, a fine of 10 million yen ($ 89,000), or both.

Ghosn, 64, was Nissan General Manager from 2001 to last year. He became general manager of Renault in 2005, simultaneously managing the two car manufacturers. In 2016, he became president of Mitsubishi Motors Corp. after Nissan incorporated it into the alliance.

Kelly, 62, joined Nissan in the United States in 1988 and joined the board in 2012. Over the years, he has worked in human resources and alliance management.

Analysts believe that Nissan's future alliance with Renault and other automakers should be monitored in the same way as what happens to leaders. Renault owns 43% of Nissan's capital and 15% of it.

Over the years, Ghosn has been an important symbol of Nissan's rebirth. He avoided the virtual bankruptcy of the Leaf electric car manufacturer and Infiniti luxury models since 1999, when he was sent by Renault to reshape Nissan.

Now, the covenant must continue without Ghosn.

Nissan CEO Hiroto Saikawa said it was time to change things and that too much power was concentrated in Ghosn, with too little transparency.

Reports indicate that Nissan executives have rejected the two companies' merger proposals.

Janet Lewis, general manager and director of industrial research for Asia at Macquarie Capital Securities in Tokyo, said an adjustment was needed to give Nissan more weight in the alliance, but that the alliance remains crucial for both companies.

In addition to equity-related financial links, companies share technology, just like basic vehicle components.

Car manufacturers must be like roommates rather than in a marriage, said Lewis.

"So they have to find a way to share their home and make the most of their expertise because they are very needed in terms of new automotive technology and developing a new platform," she said. declared.

"They have to find a way to continue in this way while living happily in the same house."

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