Carlos Ghosn Renault-Nissan Alliance Boss Arrested For Misconduct, Corruption Charges

One of the biggest names in the motoring world, Carlos Ghosn, the head of the Renault-Nissan-Mitsubishi alliance, has been arrested following charges of corruption and misconduct. Carlos Ghosn will also be removed from his position at the Nissan Motor Corporation following a board meeting on Thursday. According to reports, the Renault-Nissan boss has been charged with 'significant acts of misconduct' including personal use of the automaker's company assets along with charges of under reporting his pay package. Carlos Ghosn was responsible for massive cost cutting in the Renault Nissan alliance and effectively rescuing the Japanese automaker after it faced near bankruptcy in the early 2000s. Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation. We will continue to do so.

At a press conference in Japan, where Carlos Ghosn was arrested, Nissan Chief Executive, Hiroto Saikawa said that he felt 'Despair, indignation and resentment' and said that the misconduct had been ongoing for a long time. The allegations made have been based on an internal investigation at Nissan following a tip off by a whistle blower. According to Japanese media reports, Carlos Ghosn has under reported his salary by a massive 5 Billion Yen or about an equivalent of $ 44 million from 2011 until present. According to a Japanese rule that was introduced in 2010, firms have to disclose the salaries of all executives who earn more than 100 million yen.

Apart from Carlos Ghosn, Nissan director Greg Kelly is also under investigation for the same misconduct. The automaker stated, 'numerous significant acts of misconduct have been uncovered such as personal use of company assets and Greg Kelly's deep involvement has also confirmed.' It is said that Greg Kelly could also be arrested following these allegations.