President of Nissan, Carlos Ghosn is arrested in Japan

Nissan issued a statement saying it conducted an internal investigation in recent months on the conduct of the executive and director Greg Kelly.
19/11/2018 09h03 - Updated 19/11/2018 11h38
Photo: reproduction

The president of Nissan automaker, the Lebanese French-Brazilian origin Carlos Ghosn, He was arrested on Monday in Japan on suspicion of financial violations. The suspicion is that he has defrauded about their recipes.

Nissan issued a statement saying it conducted an internal investigation in recent months on the conduct of the executive and director Greg Kelly. "Research has shown that for many years Ghosn and Kelly reported compensation values ​​in the reports of the Tokyo Stock Exchange less than the actual", the automaker said, according to newspaper The Japan Times. There are even indications that Ghosn has used company assets for personal benefit. Tokyo investigators raided the company's headquarters.

Nissan says its CEO, Hiroto Saikawa, will propose to the company's board of directors Ghosn immediate withdrawal of the president and director of assembly plant, as well as the position of director Kelly. "Nissan deeply regrets for having caused concern to our shareholders and stakeholders", the automaker said in a statement reproduced by The Japan Times.

The earnings reported by Ghosn last year fell 33% about 2016, according to the publication. Were 730 million yen, Against 1,09 billion yen in 2016 e 1,07 billion yen in 2015.

The arrest of the executive shook the automotive industry. Seen as an example of CEO and owner of one of the most brilliant careers in the business world, he is largely responsible for the Nissan turnaround in the past two decades. There are about 20 years, the automaker tottered on the verge of bankruptcy, and Ghosn was able to lead the company out of the hole.

Born in Brazil, the executive came to the company in 1999 and created an alliance with French carmaker Renault which helped the company turn the page. After the alliance also included the Mitsubishi.

Ghosn became president of Nissan in the year 2000, when he began a drastic restructuring of the company, which earned him a reputation for severe cutter costs. It also started to negotiate with heavy steel suppliers, making of Nissan products more competitive.

Under his command, alliance between Nissan, Renault and Mitsubishi has become the world's largest car seller, by countering the rival Volkswagen. The alliance sold 5,5 million vehicles worldwide in the first six months of 2018, according to The Japan Times.

Source: Exam

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