Nissan Board members appeared to have scrapped the scratch tycoon Carlos Ghosn as chairman on Thursday after his spectacular grip…
Nissan Board members appeared to have scrapped the scratch tycoon Carlos Ghosn as chairman on Thursday after his spectacular grip for economic mishaps sent shock waves through the automotive industry and industry.
The 64-year-old Brazil-born tycoon is credited with reversing the Japanese brand and forging an alliance with Renault and Mitsubishi Motors that sold 10.6 million cars between them last year – more than any other company in the world.
Ghosn’s fate appears all but sealed after his hand-picked replacement as CEO Hiroto Saikawa launched a surprising broadside with his mentor after his arrest on Monday at a Tokyo airport when he landed in his private jet.
Saikawa said that “too much authority” had been placed in chairmen and deplored the “dark side of the Ghosn era”, which he called the board meeting to shoot him.
Seven board members will vote for the proposal to dismiss Ghosn, which must be implemented by a simple majority. Insiders say that Saikawa would probably not have proposed the wreck if he was not sure to support his board members.
“This would not have been proposed if there had been any doubts and the results of the investigations have already been presented to board members”, a source near the company told AFP.
Appointing a new chairman will take time as it must be approved by the shareholders, but Saikawa is seen as the frontrunner.
– “Spartan Relationship” –
Ghosn is held in a detention center in Tokyo and has not been publicly seen or made any comments since he was arrested.
He visited Brazilian consul Joao de Mendonca on Thursday telling AFP that Ghosn “sounded very good, good health“.
On Wednesday, local media reported that prosecutors had successfully applied to extend his custody for another 10 days when they raised their question.
Prosecutors believe Ghosn and an American executive GregKelly “collaborated to underestimate Ghosn’s income five times between June 2011 and June 2015,” reports a total of $ 5 billion in revenue ($ 44 million) instead of the actual $ 10 billion.
According to local media, the authorities also believe Nissan as a company has a case to respond after a month-long investigation caused by a whistleblower revealed year of Ghosn’s economic misconduct, including abuse of corporate assets.
Public Transmitter NHK said that Nissan had paid “huge sums” to give Ghosn luxury homes in Rio de Janeiro, Beirut, Paris and Amsterdam “without any legitimate business statement.”
Ghosn had a reputation as a tough work collector with no problems closing plants and slashing jobs – earning the nickname “Le Cost Killer” in France, where 47,000 employees work for Renault.
But his unreasonable pay and spotty lifestyle – contrary to the Japanese business culture – got on fire and his current residence will be far
“In principle, he will be alone in a cell,” said lawyer Ayano Kanezuka to AFP.
“There is everything you need, heating, a bed but the conditions are spartan,” said Kanezuka colleague Lionel Vincent.
– “Par Skilsmässa” –
The arrest has given questions as to whether the alliance Nissan, Renault and Mitsubishi Motors can survive without Ghosn, seen as the glue that holds together his sharp creation that globally employs about 450,000 people.
According to the Financial Times, the fall came from grace as Ghosn worked with a full blown fusion of Nissan and Renault.
This was opposed by Japanese executives who ended up being the most profitable player in the partnership and FT said that Ghosn’s departure could be used as a pretext for rebalancing the Alliance in Nissan’s service.
Renault has argued that the Ghetto network was jettisoning, saying that Nissan could not share.
The French financial agenda Les Echos wrote in an editorial Wednesday that future alliance meetings will “certainly be explosive.”
“Although tensions are easing, trust between companies has been at least partially broken.”
The governments of Paris and Tokyo have cried to contain the outcome of the arrest, with President Emmanuel Macron saying that France would be “extremely vigilant” about stability at Renault and the alliance.
Analysts said that despite the tensions between the two companies having their headquarters 10,000 kilometers apart, no company has the financial ability alone to make the major investments in electric vehicles considered to be the industry’s future.
“It would be like a couple of divorces after 20 years – it would be complicated, very expensive and not easy to do,” says Gaetan Toulemonde, an analyst at Deutsche Bank.
“Honestly, I do not know if it’s even possible. “
burs-ric / qan
Carlos Ghosn once dominated Nissan
The crisis seemed to go from bad to worse to Nissan, as the Asahi Shimbun newspaper reported that prosecutors believe that the company also had a case to respond. Both Nissan and the authorities refused to comment
Ghosn is held in spartan conditions at a detention center in Tokyo
The Japanese authorities have extended Ghosn’s detention by 10 days, media reported Wednesday