Nissan Board Dismisses Carlos Ghosn as Chairman

Rabat – Nissan’s board members made the decision through a unanimous vote during a meeting at Nissan’s headquarters in Yokohama, the Japanese public broadcaster NHK reported today.

The seven-member board also dismissed Greg Kelly as representative director.

On Monday, Nissan said that its CEO, Hiroto Saikawa, would propose immediately ousting the 64-year-old Ghosn who has led Nissan for about 20 years.

Mitsubishi is also preparing to dismiss Ghosn from his positions next week.

Renault decided to keep Ghosn as company’s chairman and CEO after an emergency meeting that the board of directors held on Tuesday. The French carmaker has appointed the company’s chief operating officer, Thierry Bollore, as temporary deputy CEO, granting him the same powers as Ghosn.

Read also: Renault Names Interim CEO After Carlos Ghosn’s Arrest

Japan has been arresting Ghosn since Monday for alleged financial misconduct of underreporting his salary by $44 million over five years since 2011. The misconduct also included “personal use of company assets.”

On Wednesday, the Tokyo District Court approved a request from the prosecutors’ judicial authorities to extend the detention of Ghosn and Kelly by ten days.

Ghosn’s arrest caused a shock in the automotive industry, especially because Ghosn, who leads the Nissan-Renault-Mitsubishi alliance, is considered a highly influential executive within the global automotive industry.

The alliance sold over 10 millions vehicles worldwide in 2017.

Read also: Japan Extends Ghosn’s Custody as Financial Misconduct Scandal Persists

On Tuesday, Nissan’s shares fell by 5.45 percent, while Mitsubishi went down by 6.85 percent. On Monday, Renault shares tanked more than 8 percent in European trade.

On Tuesday, Mitsubishi CEO Osamu Masuko said the alliance would be hard to manage without Ghosn, according to Reuters.

“I don’t think there is anyone else on Earth like Ghosn who could run Renault, Nissan and Mitsubishi,” Masuko told the press in Tokyo.

Japan’s top government spokesman, Yoshihide Suga, said Wednesday, “It’s important that Nissan, Renault, and Mitsubishi maintain a stable relationship.”