Nissan has got rid of the legend in the auto industry, Carlos Ghosn as the company’s chairman. This has happened after his arrest earlier in the week coming through over suspicion of carrying out financial misconduct at the organization. On Thursday, the board of Nissan voted and thus ended the tenure of Ghosn as the head of the organization. He has been at the position for almost 20 years. The arrest took place after an internal investigation was carried out. It revealed quite significant acts of misconduct over a number of years. The acts included an understatement of his level of income in financial reports and making improper use of the company’s assets.
Nissan, in their statement to the Tokyo Stock Exchange, said that the company’s directors voted in a unanimous manner for the removal of Ghosn. The vote was also in favor of removing another director named Greg Kelly. The prosecutors of Tokyo have even taken Kelly in their custody after he was accused of being involved in wrongdoing by the organization. Nissan has vouched to form a special committee for improving corporate oversight along with finding a suitable replacement. Prosecutors have alleged that Ghosn and Kelly had understated the income level of Ghosn by 5 billion yen for the five-year period that ended on March 2015. On Thursday Nissan confirmed that Kelly was the man behind the whole scheme.
The major developments have shaken up the really powerful worldwide alliance. Initially, the announcement went on to slam the stocks of all the three carmakers, Nissan, Renault and Mitsubishi. As a whole, these three make one out of every nine cars that are sold in the world. In the midst of all these, Nissan has gone on to state that the ouster of Ghosn will not have any impact on the alliance. They further said that they would look to minimize the possible impact and confusion, which might crop up in the three organizations. Analysts believe that the expenses of the fall of the alliance would turn out to be quite huge. An analyst named Travis Lundy at investment research network Smart karma has estimated that the companies protect close to 5 billion euros each year through the sharing of technology and other resources.
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.