Carlos Ghosn, the chairman of Nissan and chief executive of Renault, faces arrest in Japan and will be sacked by the auto manufacturers for alleged financial violations. The companies have worked as an alliance for nearly a two decades and Brazilian-born Mr Ghosn has led a dramatic turnaround at Nissan over the last two decades, rescuing it from near-bankruptcy.
The firm said that it has passed on the information gathered to the Japanese public prosecutor's office, and there are multiple media reports, including from Japanese public broadcaster NHK, that Ghosn has been arrested by authorities in the country. The alleged violations relate to.
He and Director Greg Kelly have been under investigation at Nissan for several months, and the company is seeking to oust them both, it said.
Renault shares fell as much as 14.4 per cent in Paris on Monday, the lowest in nearly four years in the wake of the scandal, while Nissan shed 0.45 per cent to ¥1005.5 (Dh32.78) at market close in Japan. Shares in Renault plunged 12 per cent in morning trading amid speculation that Mr Ghosn would also have to abandon his job as chief executive of the French manufacturer.
Following an internal investigation conducted after a whistle-blower claimed that he under-reported salary, Nissan to remove Ghosn from position.
The alliance sold 5.54 million vehicles worldwide in the first six months, up 5 percent from the same period previous year, according to data from the three companies.
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Carlos Ghosn is set to be removed from his role as Nissan chairman after an internal investigation found that he has under-reported his salary to Japanese authorities.
Express.co.uk has contacted press offices for both Renault and Nissan for comment. In 2016, Ghosn became Mitsubishi Motors' chairman. He took home about $8.5 million at Renault and about $2 million from Mitsubishi in the latest period.
An ouster of Ghosn, 64, is bound to raise questions about the future of the alliance that he personally shaped and had pledged to consolidate with a deeper tie-up, before eventually stepping back from its operational leadership.
The carmakers have given themselves two years to decide on a possible merger between them or find an alternative mechanism to enhance their partnership, Bloomberg News reported in July.
Brazilian-born, of Lebanese descent and a French citizen, he began his career at Michelin in France, moving on to Renault. In addition to this, he received €9.2 million in his final year as Nissan chief executive.