Renault's Ghosn, Arrested Two Weeks Ago, Faces Re-arrest

Steph Willems
by Steph Willems
renaults ghosn arrested two weeks ago faces re arrest

He won’t have to travel far. Carlos Ghosn, who was booted as Nissan chairman following his November 19th arrest in Tokyo, will reportedly be re-arrested on a new claim of financial misdealings.

The new allegations, which also involve underreported income, give Japanese authorities what they’ve been looking for — more time with which to lay formal charges. Under the current extension granted late last week, Ghosn would have to walk free on December 10th. If re-arrested, it’ll mean a meager Christmas for the industry giant.

According to Reuters, citing Japan’s Sankei newspaper, Ghosn and his one-time right-hand man, former Nissan Representative Director Greg Kelly, could find themselves re-arrested for the same crimes they’re suspected of — underreporting income to Japan’s finance ministry. That would extend the detention period until Dec. 30.

This time, the alleged crimes cover the period of 2015 to 2017. Ghosn first landed in a Tokyo detention center after a whistleblower-sparked investigation at Nissan uncovered income reporting irregularities spanning the period of 2010 to 2014. Authorities claim the underreported amount for the first period amounts to roughly $44 million. The second period is said to total $35.4 million.

After a Nissan board decision to boot Ghosn as chairman, Mitsubishi followed suit. That leaves the former high-flying executive estranged from two-thirds of the alliance he started building at the end of the 1990s. The Renault side of the alliance finds itself in a tough spot, what with holding a considerable stake (43.4 percent, with voting rights) in Nissan and itself 15 percent owned by France. Nissan holds a 15 percent stake in its French partner.

While the three automakers issued a joint release pledging their dedication to keeping the alliance intact last week, pressure’s mounting on Renault’s board to make a decision about Ghosn’s future as the company’s chairman and CEO.

On Tuesday, Nissan’s board decided not to replace Ghosn as chairman. A Kyodo News report claimed that the decision was deferred to the company’s Dec. 17 meeting, Reuters reports.

[Image: Nissan]

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5 of 7 comments
  • JoDa JoDa on Dec 04, 2018

    This is what happens to you when you anger a Rothschild banker.

  • Inside Looking Out Inside Looking Out on Dec 04, 2018

    Alliance will crumble soon. Japanese government will force Renault/French Govmnt to sell Nissan shares. Nissan does not really need Renault like Subaru does not need GM or Mazda Ford. And also do not underestimate Japanese arrogance. And French too. Would interesting to watch that cultural clash.

    • See 1 previous
    • Highdesertcat Highdesertcat on Dec 04, 2018

      @jeoff I think it is more of a cultural-envy thing. The Japanese do not want some fur'ner running one or more of their companies. Yeah, the Japanese did need Ghosn to put their companies back on the right track, and now they want to seize the power and control back from him.

  • Tassos I have driven exclusively manuals in my own cars for the first 30-40 years of my driving history. They were usually very affordable, fuel efficient simple vehicles with front wheel drive. Their manuals sucked (in the case of a 1983 GM vehicle I bought new) or were perfect (in my two 5-sp manual Hondas).After 2005, I started driving excellent 5 and 7 speed automatics in my own cars, which were NOT available in the US market with manuals.With today's outstanding automatics, which are also MORE, not LESS, fuel efficient than any manual, your question becomes MEANINGLESS.Because NO CAR "needs" a manual.Only some DRIVERS "WANT", NOT "NEED", a manual.Let us use language PRECISELY.
  • 3SpeedAutomatic And this too shall pass.....Ford went thru this when the model T was introduced. It took the moving assembly line to make real money. As time progressed, it got refined, eventually moving to the Model A. Same kind of hiccups with fuel injection, 4 speed automatic, Firestone tires, dashboards with no radio knobs, etc, etc, etc. Same thing with EVs. Yep, a fire or two in the parking lot, espresso time at the charging stations, other issues yet to be encountered, just give it time. 🚗🚗🚗
  • Art Vandelay 2025 Camaro and Challenger
  • Mike Beranek Any car whose engine makes less than 300 ft-lbs of torque.
  • Malcolm Mini temporarily halted manual transmission production but brought it back as it was a surprisingly good seller. The downside is that they should have made awd standard with the manual instead of nixing it. Ford said recently that 4dr were 7% manual take rate and I think the two door was 15%.