Newspaper article The Journal (Newcastle, England)

Ghosn Fired by Nissan after Arrest in Japan

Newspaper article The Journal (Newcastle, England)

Ghosn Fired by Nissan after Arrest in Japan

Article excerpt

Byline: COREENA FORD Business writer coreena.ford@ncjmedia.co.uk @Scoopford

NISSAN has fired Carlos Ghosn as chairman in a dramatic end to the powerful executive's nearly two-decade-long reign at the Japanese carmaker after his arrest for alleged financial improprieties.

The company, which has a huge manufacturing plant in Sunderland, said in a statement that its aim was to minimise the impact from the case on its alliance with France's Renault SA and smaller Japanese carmaker Mitsubishi Motor Corp.

It said Mr Ghosn and another executive, Greg Kelly, were also dismissed as representative directors. Nissan's board held an emergency meeting at the company headquarters in Yokohama yersterday. The company said in a statement that the decision was made after the board reviewed a detailed report of an internal investigation into the alleged misconduct.

Mr Ghosn will be detained for another 10 days following his arrest on suspicion of falsifying income reports by millions of dollars and misusing company assets for personal gain, Japanese media has reported.

The chairman of Nissan is suspected of using luxury homes purchased by the Japanese car giant in four countries for free as part of his alleged financial misconduct.

Under Japanese law, suspects can be held for 20 days per possible charge without an official indictment.

Additional charges can be tagged on, resulting in longer detentions. Neither Mr Ghosn nor the company's representative director, Greg Kelly, has been charged so far.

Mr Ghosn is suspected of underreporting PS34.8m in income from 2011 to 2015, according to Tokyo prosecutors.

The maximum penalty, upon conviction for violating finance and exchange laws, is 10 years in prison, a 10 million yen (PS69,000) fine, or both.

Detainees undergoing interrogation in the Tokyo area are generally held in a centre that is separate from the prison for those who have been convicted and sentenced. …

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