Carlos Ghosn arrested

Discussion in 'General' started by jdbob, Nov 19, 2018.

  1. gooki

    gooki Active Member

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  2. interestedinEV

    interestedinEV Active Member

    And as the soap opera continues, Nissan and its customers are paying the price

    Nissan hits former Chairman Carlos Ghosn with $91 million lawsuit

    ............The lawsuit Nissan filed on Wednesday seeks to recover, among other things, legal and other costs connected with the long probe into alleged misconduct by Ghosn.

    Nissan itself has faced a series of troubles related to the scandal. It paid fines in both the U.S. and Japan related to alleged overpayments to Ghosn. Nissan itself has suffered a sharp drop in sales and earnings that some industry analysts link to the ongoing Ghosn affair.

    The company is set to report its latest earnings on Thursday, with analysts expecting the first quarterly decline since 2009.
  3. bwilson4web

    bwilson4web Well-Known Member Subscriber

    The hits keep coming,

    Nissan reported its latest financial earnings and the numbers are cause for concern. Sales of vehicles fell 8%, revenue dropped 12%, and its net profit dropped 88%. That’s a profit margin of only one half of one percent, and it prompted Nissan to eliminate its dividend. This is a company in deep trouble and it’s only going to get worse. Japanese companies operate on a fiscal year that runs from the end of March to the end of March. That means there’s one more quarter to go and none of these numbers reflect the impact of the corona virus on Nissan’s Chinese operations.

    If Ghosn was setup in some sort of Nissan 'palace coup', it has terribly backfired.

    Bob Wilson
  4. gooki

    gooki Active Member

    Has it backfired? 40% of the dividend goes to Renault.

    One way to end a relationship is to starve the other party.

    But yeah it's going to be interesting to see how Nissans financials play out as they switch from Ghosns volume strategy to attempting higher margins.
  5. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    That was the impression I got from other analyses of the situation regarding Nissan's corporate performance since ousting Ghosn.

    Whatever was planned by those at Nissan who conspired to oust Ghosn and distance the company from Renault, at least in the short term it appears to have backfired rather badly. Maybe they're taking the long view, or maybe -- as seems to be the case -- they have done something quite foolish, not to mention unethical and immoral.

    bwilson4web likes this.
  6. papab

    papab New Member

    It seems like Ghosen gave them plenty of unethical material for them to work with
  7. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    You're asserting that Carlos Ghosn did something, or a series of things, that are unethical? Please explain.

    I don't see that he did anything wrong here, and so far as I'm concerned, he's to be admired and congratulated for holding up under months of intensive interrogation coupled with solitary confinement, while being denied contact with his lawyers. He's also to be admired and congratulated for engineering his escape from confinement despite being closely watched.

    Of course you're entitled to your opinion, but I wonder if you actually understand the facts of this case.

  8. interestedinEV

    interestedinEV Active Member

    Well I do not know how you read it, but Carlos Ghosn settled with the SEC over undisclosed compensation. The US SEC is not the Japanese Ministry of Justice and they would not have filed charges unless they believed there was some validity to their case. (And yes, I believe they were right to file charges against Elon, in case that comes up). To be fair, Ghosn did not admit guilt and he never actually got the money which SEC claimed Nissan and Ghosn were trying to hide. You are right that Goshn has never been tried and convicted, he has only been accused. And by the rules of civilized societies, he is innocent until proven guilty. However, based on what I hear, one can legitimately wonder whether Goshn played fast and loose with the rules.

    The U.S. Securities and Exchange Commission settled charges Monday against former Nissan CEO Carlos Ghosn and former director Gregory Kelly over false financial disclosures that omitted more than $140 million in total compensation.

    Ghosn, with substantial assistance from Kelly and others, attempted to conceal more than $90 million of his pay from 2009 until his arrest in Tokyo in November 2018, according to the SEC. The scheme also included increasing Ghosn’s pension by more than $50 million.

    The commission said Nissan omitted more than $140 m.......

    Meanwhile, Nissan, Ghosn, and Kelly all settled without admitting or denying such allegations and findings, the SEC stated.
    Pushmi-Pullyu likes this.
  9. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    I had forgotten that part of the story. Thanks for the reminder.

    You're right, that does not at all look good for Ghosn. Other stories seem to indicate that Ghosn left the matter of reporting his very complex compensation package from Nissan up to his accountant(s) and/or his tax attorneys, that other Nissan execs had signed off on his compensation, and that the only "failure" was failing to report to the Japanese tax authorities compensation before he had actually received it!

    But yes, if the SEC filed charges independently and Ghosn settled rather than fighting the charges, then that does rather strongly suggest that there was some malfeasance on his part.

  10. gooki

    gooki Active Member

    Settling with the SEC is often cheaper than fighting for your innocence. It proves nothing.

    What is appauling, is Nissan pleading guilty in Japan and not guilty in USA.
  11. gooki

    gooki Active Member

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