Nissan, Renault chairman Carlos Ghosn arrested over corruption charges
What's the story
Japanese car giant Nissan is preparing to oust its chairman, Carlos Ghosn, after finding evidence of corruption.
In a statement, the company said that Ghosn had been found using company assets for personal gain on several occasions, and "numerous other significant acts of misconduct" had been found.
Ghosn, also the chairman of Renault and Mitsubishi Motors, has reportedly been arrested in Tokyo.
Here's more.
Details
Ghosn was aided by another board member, Greg Kelly
The findings of corruption surfaced during an internal investigation conducted by Nissan.
The probe found that Ghosn, among other things, had under-reported his salary for many months, aided by another board member, Representative Director Greg Kelly.
Both of them are set to be removed from their posts, and the removal procedure will be initiated by Nissan CEO Hiroto Saikawa.
Carlos Ghosn
Who is Carlos Ghosn?
For those unaware, Carlos Ghosn is one of the biggest names in the auto industry.
Born in Brazil, and a citizen of France, Ghosn comes from Lebanese descent.
He began his career in Michelin, and in 1999 joined Nissan after Renault bought a controlling stake in the company.
In 2001, Ghosn became CEO of Nissan. He relinquished the post only last year.
Reputation
Ghosn personally shaped the Franco-Japanese auto alliance
A behemoth in the auto industry for over 20 years, Ghosn was responsible for bringing Renault and Nissan back from the brink of bankruptcy.
Dubbed 'Le Cost Killer' in France, Ghosn's reputation preceded him, and he personally shaped the Renault-Nissan-Mitsubishi Motors alliance, before stepping back from operational leadership.
Ghosn has a near-cult following in Japan, and has also been serialized in a famous Japanese comic book.
Do you know?
Ghosn had even been tipped to lead countries
Ghosn was once tipped to become the president of Lebanon but he dismissed the move on account of already having "too many jobs". In a 2011 poll about people the Japanese would like to run their country, Ghosn came seventh, above ninth-ranked Barack Obama.
Markets
Markets have reacted adversely to the findings against Ghosn
Given the fact that most people expected Ghosn to helm the Franco-Japanese auto alliance for some years, his arrest and impending exit came as a shock to several investors.
Following the findings of corruption against Ghosn, Renault shares tumbled 13% in Paris, while Nissan's Germany-listed securities fell 12%.
Meanwhile, it's unclear what will become of the Franco-Japanese alliance in Ghosn's absence.