Ghosn family believes arrest was to prevent Nissan-Renault merger

Amy Chozick, writing for the New York Times:

She [Caroline Ghosn] and her sister Maya Ghosn, 26, do not have direct knowledge of their father’s business discussions, but both said watching Mr. Saikawa address the national news media had cemented their belief that internal company dynamics were at play.

“Wow,” Caroline Ghosn said. “He didn’t even waste a breath. He didn’t even try to cover up the fact that the merger had something to do with this.”

Maya Ghosn, who works in philanthropy, agreed. As Mr. Saikawa was “talking about the alliance, it was clear to me that there was way more associated with it,” she said. “My gut reaction was that this was bigger than the accusations against my dad.”

Nicholas Maxfield, a company spokesman, said: “These claims are baseless. The family would never have had any reason to be privy to discussions related to the future of Nissan and the alliance.”

“The cause of this chain of events is the misconduct led by Ghosn and Kelly,” Mr. Maxfield said. “During the company’s internal investigation into this misconduct, the prosecutor’s office began its own investigation and took action.” (Asked specifically whether a merger had been discussed, Mr. Maxfield said a previously announced six-year plan had called for “additional synergies and further convergence among the member companies.”)

Mr. Ghosn has remained in a small jail cell without the opportunity for bail since his arrest.

It will be a long while before the truth is finally revealed, but what a soap opera this is becoming for Nissan, Renault and the wider automotive industry. I don’t know much about the Japanese legal system, but locking Ghosn up without bail appears to be a heavy handed tactic for someone who hasn’t committed any physical crimes.

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.