Nissan boss Carlos Ghosn arrested for suspected financial misconduct
The chairman of Nissan, Mitsubishi Motors and Renault has been arrested over claims of financial misconduct, sending shockwaves throughout the auto industry.
For more on this and other news around the world we turn to our Ro Aram…
Aram… this is quite the bombshell....
That's right… Carlos Ghosn is under investigation by both Nissan and Tokyo prosecutors for what they have called "significant acts of misconduct."
They include years of misreported earnings and misuse of company funds and assets.
The allegations came to light after a tip-off from a whistleblower.
As the probe is ongoing, Nissan said it cannot provide further details of the alleged offenses.
It did announce it would propose the dismissal of Ghosn and a company director, suspected of being an accomplice, during Thursday's board meeting.
CEO Hiroto Saikawa said Ghosn had too much power.
"There are problems in terms of governance. When the top of Renault is concurrently serving as the top of Nissan with 43 percent of shares, one person has too much authority and that was the problem. I think this was one of the causes."
The stocks of Nissan and Renault plummeted after the announcement.
Ghosn is a towering figure in the motor industry and one of very few foreign top executives in Japan, and is revered there for rescuing Nissan from near bankruptcy.
His departure would raise questions about the future of its alliance with Renault.
French President Emmanuel Macron said his government, which owns 15 percent of Renault, would work to preserve that alliance.
Ghosn could not be reached for comment.