Carlos Ghosn: Custody 'extended by 10 days'

Adjust Comment Print

Renault SA, Nissan's biggest shareholder and partner in the world's biggest auto alliance, has said it's awaiting more details of the allegations and has installed an interim chief executive officer in place of Ghosn.

However, Ghosn is temporarily incapacitated of his position and the Board of Directors have appointed Thierry Bollore as the temporary Deputy Chief Executive Officer (CEO) who will be leading the management for the time being and will be exercising the same powers which Carlos Ghosn had as the CEO of the company.

"All corporate governance procedures are fully functional, allowing Groupe Renault to pursue the normal course of its industrial and commercial operations", Renault also said. Under Japanese law, prosecutors can hold Ghosn for up to 23 days for questioning.

Ghosn and Greg Kelly, a representative board member, were arrested on November 19 on suspicion of violating the Financial Instruments and Exchange Law.

During this period, the Board will "meet regularly" under Lafayette's presidency to "ensure" the continuity of the alliance with Nissan and Mitsubishi, something that had been called into questioned by the outbreak of the scandal.

The crisis appeared to be going from bad to worse for Nissan, as the Asahi Shimbun reported that prosecutors believe the firm also had a case to answer.

The allegations of misconduct relate to Ghosn's role as chairman of Nissan, which Renault now owns a 43.4 per cent stake in.

Nissan CEO Hiroto Saikawa said Monday that a months-long probe found Ghosn had under-reported income and misused Nissan company funds.

He had a reputation as a workaholic and won the nickname "Le Cost Cutter" in France for his slash-and-burn approach to corporate restructuring.

Netanyahu avoids Israeli snap polls for now
Bennett and Shaked claim that the ball is now in the prime minister's court-they will be watching for a shift in strategy. Lieberman has now been exiled to the opposition; his wish for early elections as quickly as possible hasn't come to pass.

While both Mr Le Maire and his Japanese counterpart, Mr Hiroshige Seko, reaffirmed their support for the alliance, the structure of the partnership between the two companies has been increasingly controversial in Japan as Nissan outgrows Renault in sales and profits.

"He trampled on Japanese cultural norms with his flamboyant glory-hogging ways, and his massive compensation incited jealousies and invited retaliation", he said.

Renault owns 43 percent of Nissan while in turn the Japanese firm has a 15-percent stake in Renault.

The Brazilian-born businessman has been credited with turning around both Nissan and Renault before becoming the linchpin of the alliance the companies later formed.

Jeff Kingston, director of Asian Studies at Temple University Japan, told AFP that Ghosn was "a victim of his own hubris and success".

Media reports also spoke of a lavish Marie Antoinette-themed party in 2016 for Ghosn's second wedding, at the grandiose palace of Versailles.

"He says the right things, but in the end it's all about money", the daily quoted an unnamed senior employee as saying.

"I hope our future isn't at risk".