Thursday , June 1 2023

Nissan: Ghosn's fall affects Tokyo and Paris; more details emerge | Economy | companies


The arrest of President Nissan, Carlos Ghosn, reverberating for the second consecutive day as politicians and executives who are trying to fill the gaps in the world's largest automobile alliance on the back of new reports of alleged financial irregularities.

The principal Renault He met on Tuesday evening in Paris to discuss the future of his alliance with Nissan and called "provisional" in the executive leadership of the group Thierry Bolloré, which will have "the same powers" as Ghosn, detained in Japan.

"Mr Ghosn, temporarily prevented, is still president and chief executive officer," the French author said in a statement after an extraordinary meeting of his board of directors, convened after Ghosn's arrest, accused of hiding treasury revenue. .

Previously, Nissan informed Renault that it was investigating possible financial irregularities within the joint venture Renault-Nissan, said people close to the subject.

In Japan, where Ghosn remains in custody after his arrest Monday, more details about his alleged crimes have begun to appear in local media.

Overall, they unveiled the image of an executive who used the company's funds to fund an expensive lifestyle, luxury homes spread around the world, and money channeled to investment funds and family holidays.

Future of the alliance
The disclosures, known after an internal investigation lasting Monday, put stakeholders in a difficult situation because there is no clear successor. Although all sides assured the alliance is solid, it is certain that Ghosn was the axis.

The French Government, which owns 15% of the RenaultHe said he would protect the car, which benefited greatly from participation in the Franco-Japanese pact.

Minister of Economy and Finance, Bruno Le Maire, has said he will meet with Renault and government representatives on the company's board to discuss the new interim leadership.

While the French government is not calling for Ghosn's official dismissal, he is no longer in a position to lead the company, Le Maire told French radio stations.

President Emmanuel Macron said on Monday he would remain "very vigilant" with regard to the stability of the alliance Renault-Nissan.

Le Maire has indicated that the government will seek evidence from the Japanese authorities. Board of Directors of Renault and the Macron government were surprised by the accusations, according to people familiar with the matter. A spokesman for Renault refused to comment on the minister's plans.

Bigger investigation
Apparently, the alleged murder was more widespread. According to Nikkei, Ghosn could have received undeclared funds from the Renault-Nissan joint venture for an amount of nearly 100 million yen ($ 880,000).

In a note sent to workers on Monday, Bollore expressed "total support for our president and executive director," calling the alliance as "an industrial jewel to be protected." Renault confirmed the contents of the letter, quoted entirely by The Financial Times.

While there is no doubt about the end of Ghosn's adventure at the top of the global automotive industry, there is less clarity about the nature of its violations.

Japanese station NHK said on Tuesday that Nissan He paid "huge sums" for the homes of Ghosn scattered all over the world. The buildings in Rio de Janeiro, Beirut, Paris and Amsterdam did not have "a legitimate business motive," and Ghosn did not pay at least a portion of the rent, according to the report.

At a press conference Monday in Tokyo, the executive director of Tokyo Nissan, Hiroto Saikawa, opted not to give details of the allegations and just pointed out that he did not declare all his incomes and the company's detained funds.

Real estate investments
Overall, Ghosn has not reported about 5 billion yen for five years since 2011, prosecutors in Tokyo said on Monday. Under Japanese law, Ghosn may remain in custody for up to 23 days without being charged.

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