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Mitsubishi Motors board meets on Monday to remove President Ghosn

TOKYO (Reuters) – Mitsubishi Motors Corps ( 7211.T ) The board will meet on Monday to remove Carlos Ghosn from…

TOKYO (Reuters) – Mitsubishi Motors Corps ( 7211.T ) The board will meet on Monday to remove Carlos Ghosn from his role as chairman after his arrest and exile from alliance partner Nissan Motor Co ( 7201.T ) last week for alleged economic misconception.

PHILOTTO: Carlos Ghosn, President and CEO of the Renault-Nissan-Mitsubishi Alliance, participates in the Tomorrow In Motion event on the threshold of the press day at the Paris Auto Show in Paris, France, October 1

, 2018. REUTERS / Regis Duvignau

A removal of Ghosn by Mitsubishi’s eight member meeting at the automaker headquarters in Tokyo at. 1630 (0730 GMT), would end his presidency of Japanese car manufacturers among dissatisfaction over French partners Renault SA ( RENA.PA ) role in the alliance.

Ghosns branding would also mark the removal of the man credited with Stabilizing Mitsubishi Motors after being wounded by a cheating scandal in 2016.

Top Alliance leaders face this week in Amsterdam, which aims to protect their joint activities from the fall of Ghosns arrest as a power struggle between Nissan and Renault looms.

Nissan’s CEO Hiroto Saikawa told the officials on Monday that the concentration of power in Ghosn meant that there was no direct communication between the other alliance board members, said a person who was familiar with the contents of the City Hall.

Nissan said it does not disclose details about internal events or communication to employees.

While nearly 60 percent bigger than Renault through sales, Nissan is still junior in its shareholding structure. Ghosn pushed for a deeper commitment, including possibly a complete merger between the two car manufacturers at the request of the French Government, despite strong reservations by the Japanese company.

Nissan has a controlling 34 percent in Mitsubishi Motors and has two directors on the board. The other representative boss is CEO Osamu Masuko, who said last week the alliance can be difficult to handle without Ghosn.

Nissan removed Ghosn at a spelled board meeting on Thursday but Renault has refrained from firing him as president and CEO. Ghosn has denied allegations against him, reported the public broadcaster NHK on Sunday.

Although car manufacturers have emphasized that business and operations continue as usual, Nissan has postponed the launch of its high-performance Leaf electric car “to ensure that this important product coverage can get the coverage it deserves,” said a Nissan spokesman.

Reporting by Maki Shiraki, Sam Nussey and Chang-Ran Kim; Editing Muralikumar Anantharaman

Our Standards: Thomson Reuters Trust Principles.

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