Mitsubishi sacks Carlos Ghosn as chairman

November 26, 2018  

Mr Ghosn, who led an alliance between Nissan, Renault and Mitsubishi, has reportedly denied claims he under-reported his income.

11:07, UK,
Monday
26
November
2018

Mitsubishi Motors has voted to dismiss Carlos Ghosn as its chairman after his arrest last week on suspicion of financial misconduct.

Mr Ghosn has already been sacked as chairman by Nissan, which is in an alliance with Mitsubishi and French carmaker Renault.

The Brazilian-born businessman, 64, is accused of under-reporting his income by five billion yen (£34m) over five years.

He has reportedly denied allegations against him – telling investigators there was no intention to under-report his earnings, according Japanese public broadcaster NHK.

Nissan has also alleged that the tycoon misused company funds – reportedly through the purchase of luxury homes in four countries.

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On Monday, Mitsubishi said that Mr Ghosn had lost the trust of Nissan and would find it difficult to continue as chairman.

Its current chief executive Osamu Masuko will take on the additional role of acting chairman pending a shareholder meeting.

Mr Ghosn has been at the forefront of Japan’s car industry for two decades and spearheaded Nissan’s alliance with Renault.

He also took the lead in bringing Mitsubishi into the alliance, when Nissan bought a 34% stake in the smaller carmaker.

Mr Ghosn became known as “Le Cost Killer” for taking a ruthless attitude to the pursuit of business turnarounds.

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His arrest and the subsequent fallout has prompted worries about the future of the alliance between Nissan and Renault.

The French car giant has decided not to dismiss Mr Ghosn from his positions as chairman and chief executive, though it has appointed interim replacements while he remains “temporarily incapacitated”.

That was despite the position of the French government, which owns 15% of the company.

France’s finance minister Bruno Le Maire said last week that Mr Ghosn was “no longer in a position to lead the group”.

Mr Ghosn was being held alongside Greg Kelly, an executive suspected of collaborating with him, and who has also reportedly denied allegations against him.

On Wednesday, prosecutors were given 10 more days to question Mr Ghosn.

© 2018 Sky UK