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Nissan Chairman Carlos Ghosn to Be Removed, Possible Arrest to Follow

The shock of the year in the auto industry comes from Japan, where Nissan announced on Monday it has uncovered serious misconduct by the company's chairman, Carlos Ghosn, and the representative director, Greg Kelly.
Nissan to oust Carlos Ghosn, arrest likely to follow 1 photo
Nissan says that based on a whistleblower report, an internal investigation was conducted over the past several months into the actions of the two men. The investigation found that Ghosn was involved in schemes meant to deceive Japanese and company authorities.

More to the point, “the  investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation.”

“Also, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed,” says Nissan.

According to the carmaker, the Japanese Public Prosecutors Office has been informed, and Japanese media claims an arrest of the auto industry veteran is likely to follow. Also, the official will be removed from his positions as chairman.

Although not shedding enough light on the subject – more will probably surface in the hours ahead – Nissan “deeply apologizes for causing great concern to our shareholders and stakeholders.”

The Brazilian-born Ghosn was Nissan chairman since 2017, after stepping down from his role of company CEO.

In 2003 he was named by Fortune one of the 10 most powerful people in business outside the U.S. and was considered one of the most respected business leaders in the world. His status made some ask for him to be head of  General Motors and Ford.

Below you can find the entire statement on the subject as released by Nissan. Stay tuned for more updates on the subject.

press release
 
 
 
 
 

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