Carlos Ghosn arrested

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News starting to come out from the Renault side.
Renault is aiming to reach in about a week the first conclusions of an internal probe into whether the pay packages of Carlos Ghosn and other top managers of the automaker were properly disclosed, according to people familiar with the matter.
The ongoing investigation focuses on their salaries and other benefits at Renault, where Ghosn remains CEO and chairman, said the people, who asked not to be named because the information is not public. The probe is being led by Eric Le Grand, a former head of security who was recently appointed as an ethics and compliance officer, and another Renault insider, Claude Baland, a 68-year-old former top civil servant, they said.
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Renault executives are suspicious of Nissan’s motives, demanding to see the Japanese automaker’s proof of the allegations against Ghosn, the people said. Nissan offered up a presentation summarizing alleged transgressions, but Renault declined, requesting the presence of lawyers and the full report on the allegations, they said.

A spokesman for Renault said Nissan still has not provided the evidence Renault’s board has asked for.
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https://europe.autonews.com/automakers/renault-said-be-near-first-conclusions-ghosn-probe
 
Juicy news. Carlos Ghosn was planning to remove Nissan CEO Hiroto Saikawa.

TOKYO – Carlos Ghosn was planning to remove Nissan CEO Hiroto Saikawa before Ghosn was arrested in Japan last month for alleged financial misconduct, people familiar with the matter said.

Ghosn, who was then Nissan's chairman, was planning a wider management shakeup, and part of the blueprint included a new CEO, two people with knowledge of the matter said.
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https://europe.autonews.com/automak...e-saikawa-nissan-ceo-arrest-japan-sources-say
 
Ghosn charged.

Tokyo prosecutors on Monday charged Carlos Ghosn, the former chairman of Nissan Motor, with misstating his income for years.
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Meanwhile, Japan's Securities and Exchange Surveillance Commission on Monday asked Tokyo prosecutors to move ahead with charging Ghosn, Kelly and Nissan with violating financial law by falsifying annual reports.

The SESC reported that Ghosn and Kelly allegedly submitted false annual reports that did not include a total of some 5 billion yen in Ghosn's compensation over five years from fiscal 2011 to 2015.

Ghosn and Kelly deny the charges, meaning they will likely go to trial if they are indicted. If the court approves, Ghosn can be detained for another 20 days for the investigation of the rearrest, which may draw renewed international criticism of his prolonged incarceration.
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https://asia.nikkei.com/Business/Ni...and-Nissan-charged-with-underreporting-of-pay
 
gooki said:
Juicy news. Carlos Ghosn was planning to remove Nissan CEO Hiroto Saikawa.
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I'd say make some popcorn and enjoy the show... but if Ghosn is being subjected to repeated daily interrogations intended to break him down and force a confession regardless of the facts, then it's hardly a "show" that we should be enjoying. :(

Maybe I'm biased, but my sympathy is definitely with the accused in this case. Criminal charges seem all out of proportion to the alleged regulatory infractions.

P.S. -- Thanks again, Gooki, for keeping us up-to-date!
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As predicted Ghosn’s detention has been extended.

Carlos Ghosn will be staying in custody another 10 days, the Tokyo District Court decided on Tuesday. Nissan Motor's former chairman as well as former Representative Director Greg Kelly will stay under arrest up to Dec. 20, after they were rearrested on Monday.

The pair's detention could last longer. Japan's Code of Criminal Procedure allows for extending detentions in 10-day increments if a court permits. Therefore, Ghosn's detention could last until December 30th.
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https://asia.nikkei.com/Business/Nissan-s-Ghosn-crisis/Ghosn-s-detention-extended-by-another-10-days
 
TOKYO -- Former Nissan Motor Chairman Carlos Ghosn appears to have created a list to show his total pay package, including retirement money, Nikkei learned on Tuesday.

The Tokyo District Public Prosecutors Office, which is apparently in possession of the list, considers it evidence that Ghosn acknowledged differences in total compensation -- both what he received and was due to receive -- and the amounts stated in securities reports.

Ghosn might have revised his list by hand, according to sources familiar with the matter
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https://asia.nikkei.com/Business/Ni...pt-by-Ghosn-allegedly-shows-pay-discrepancies
 
Ghost files complaint.

Carlos Ghosn, the ousted chairman of Nissan Motor (7201.T), has filed a complaint against a court decision to extend his detention following his re-arrest on fresh allegations of financial misconduct, the Tokyo District Court said on Tuesday.
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Denied

A Tokyo court on Tuesday rejected ousted Nissan Motor chairman Carlos Ghosn’s appeal to end his detention following his arrest last month on allegations of financial misconduct.
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Maintaining innocence

But Kelly’s lawyer, Yoichi Kitamura, said he was certain that his client’s innocence would become clear in court.

“The reason I’m confident is because there was no violation of the financial instruments and exchange law,” he said.
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https://www.reuters.com/article/us-...-ghosns-appeal-to-end-detention-idUSKBN1OA0EQ
 
My guess is that some people are hoping the alliance splits-up, or at-least that Renault sells its stake, "unleashing" Nissan and Mitsubishi. But it would be interesting for Renault to purchase $2.2bn in Nissan, taking a majority share to protect itself and the alliance, then declare a full merger.

Personally, I think the alliance was a great blueprint for how to make domestically-focused manufacturers competitive. For example, there are lots of US drivers who will "only drive a Ford [truck]". Those buyers won't accept Ford if it is foreign-owned. But if Ford becomes a 1-country truck company, it won't last long, either. Having Ford become part of an "almost-merger" (such as its EV sharing with VW) could be the "best of both worlds."
 
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Alliances between large auto makers will likely become much more important over the next few years, as the pressure on legacy auto makers to convert to making BEVs becomes more intense. Splitting the R&D cost for developing true BEVs -- as opposed to trying to shoehorn a BEV powertrain into an existing gasmobile -- will help legacy auto makers survive.

From Teslarati.com: "Ford and VW are considering an alliance to push EVs in Tesla-dominated market"
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Exploring new leadership options.

Confusion reigns over the naming of Carlos Ghosn's successor at both Nissan Motor and French partner Renault as the two automakers jockey for advantage in a post-Ghosn alliance, with the Japanese company likely delaying a decision scheduled for Monday.

The French automaker decided to keep Ghosn as its chairman at a board meeting Thursday, citing an internal investigation that found no wrongdoing by the chairman. But behind-the-scenes maneuvering is underway, with Reuters reporting that the French government has begun looking for a successor.

The company appointed Thierry Bollore as interim chief on Nov. 20. Paris, however, seeks to maintain Renault's influence on Nissan by quickly appointing a new CEO.

The French government is reportedly considering Toyota Motor Executive Vice President Didier Leroy, a French native and former Renault employee, as a candidate to replace Ghosn. Toyota has said it cannot comment on the matter.
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Looks like Renault may be looking to exercise some of their power as a majority Shareholder of Nissan.

Renault has urged Nissan's board to call an extraordinary general meeting on Monday, a move that would allow the French carmaker to make key appointments at the Japanese company after the removal of its chairman Carlos Ghosn.

In a letter dated December 14, Renault's acting chief executive Thierry Bollore wrote to his Nissan counterpart Hiroto Saikawa to express the French company's deep concerns about last week's indictment of Nissan along with Mr Ghosn on allegations of financial misconduct.
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"The indictment creates significant risks to Renault, as Nissan's largest shareholder, and to the stability of our industrial alliance," Mr Bollore wrote in the letter to Mr Saikawa, which was seen by the Financial Times.
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"In your upcoming Nissan board of directors meeting scheduled for this coming Monday, December 17th, we respectfully ask that the Board consider calling an Extraordinary General Meeting of Nissan shareholders as promptly as practicable. The EGM would allow for the appropriate disclosure and discussions of governance and other matters, including the Renault appointees on the Nissan board and in senior management."
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Request for shareholder meeting denied.

Nissan Motor denied a request from top shareholder Renault to convene an extraordinary shareholders meeting to appoint a replacement for ousted Chairman Carlos Ghosn, a move that could intensify a power struggle over the Japanese automaker's management.

Instead, Nissan formed an independent governance committee during a board meeting held Monday, tasked with reviewing the weak governance structure at Nissan -- which allowed one figure, Ghosn, to hold overwhelming power -- and devising a process to decide executive pay.

The committee also will have extensive input on appointing Ghosn's successor
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The future of the Alliance is not looking good. Nissan might find itself back in the minor leagues at this rate. Way to go, Saikawa-san.
 
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