Nissan and Mitsubishi to fire chairman Carlos Ghosn

Hans Greimel, writing for Automotive News:

‘Ghosn, 64, allegedly under-reported his income in official stock market filings. He diverted corporate investment funds for personal use. And he misused company expenses, Saikawa said. Ghosn was taken into custody earlier in the day after arriving at a Tokyo airport and charged with similar violations of Japan’s financial laws, local media reported.

It was bombshell development for one of the industry’s most storied executives and a man who created its biggest automotive partnership, the Renault-Nissan-Mitsubishi Alliance. Ghosn oversees them all as chairman of the alliance, while individually chairing all three carmakers and concurrently serving as CEO of French partner Renault.’

This is shocking. Alongside the late Sergio Marchionne, Ghosn is one of the most influential and famous executives in the automotive industry, and widely credited with turning around the fortunes of Nissan and for forming the Renault-Nissan-Mitsubishi Alliance. It will be fascinating to see the consequences of these revelations unfold and their impact on the Alliance, given the substantial amount of power Ghosn held over the three companies.

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Above: Brands of the Alliance. From left to right, they are Renault, Nissan, Mitsubishi, Dacia, Renault-Samsung, Lada, Alpine, Infiniti, Venucia and Datsun.