Carlos Ghosn who heads up the Japanese-French alliance Nissan, Renault, and Mitsubishi Motors has been arrested by the authorities on Monday. After this incident, the shares of automobile manufacturers Nissan and Mitsubishi have slumped in early Tokyo trade. He is the architect of a strategic alliance between Nissan and Renault that made it the world’s largest carmaker. According to prosecutors, he is accused of under-reporting his income by 5 billion Yen ($44.4 million) for over 5 years period.
In Japan, there is 10 years of imprisonment for filing a false financial statement and a fine of 10 million Yen ($89,000). Nissan and Mitsubishi have revealed that they are preparing to remove Carlos from his post. Stocks in all these 3 companies tanked. The shares in Nissan faced a 4% downward by midday while Mitsubishi encountered 7% downfall and Renault closed down more than 8% in Europe on Monday. The three car manufacturers shares ownership, too. Nissan owns 15% of Renault, while Renault holds a 43.5% stake in Nissan. Mitsubishi was taken on board in 2016 when carmaker Nissan bought 34% of its stock. But now after the bombshell of Carlos’ alleged misconduct their alliance could falter. The auto industry is presently under intense pressure to develop mass-market electric cars as the tech companies are in the race to beat them.
In a late night press conference, Nissan told that an internal investigation prompted by a whistleblower had unveiled some significant acts of misconduct. Hiroto Saikawa, the CEO of Nissan said that too much authority was given to Ghosn in terms of governance. Hiroto called this another side of the driven cost killer Carlos Ghosn, a dark side and stated that it lasted for a long time. He also added that he was still thinking through whether ‘Mr. Fix It’ was a charismatic figure or a tyrant. The announcement shocked the whole automotive industry. Last year, the Renault-Nissan-Mitsubishi alliance revealed that they sold 10.61 million passenger cars. The board of Renault will meet Mr. Ghosn to decide his future.
William has an experience of more than seven years writing for the web. In the recent couple of years, he’s been focusing on the business sector, watching market trends and the growth of economies. At News IMN, we use his services to keep our readers updated about the market that decides their lives.