Ghosn's Days As an Auto Executive Could End Tomorrow

Steph Willems
by Steph Willems
ghosn s days as an auto executive could end tomorrow

As the Carlos Ghosn saga slowly crawls its way towards a trial, the former Nissan and Mitsubishi chairman might soon add another “former” to his list of descriptors. In an effort to mend a rift in the automotive alliance, Renault’s board has scheduled an emergency meeting for Thursday, during which the pressure will be on to oust Ghosn as the automaker’s chairman and CEO.

As he cools his heels in jail, Ghosn isn’t in a position to offer much resistance to any decision rendered by the board. The exec has reportedly offered to resign.

While Nissan and Mitsubishi dropped Ghosn not long after his Nov. 19 arrest on suspicion of underreporting income to Japanese regulators, Renault held out. Its partial French ownership and Ghosn’s nationality played a role, and the diverging decisions soon placed a strain on the alliance relationship.

According to the Financial Times, Ghosn’s failure to secure bail earlier this week was the final straw for his tenure as Renault boss. Sources close to the talks claim that Ghosn, realizing he’ll be held in jail until his trail, has begun making formal arrangements to resign his posts.

From FT:

Renault and the French government have been discussing the terms of Mr Ghosn’s departure ahead of its board meeting on Thursday where the company is expected to appoint Jean-Dominique Senard, chief executive of tyremaker Michelin, as chairman while Thierry Bolloré, who is already running the business in Mr Ghosn’s absence, is made chief executive.

On Tuesday, Bruno Le Maire, France’s finance minister, said on French television that Mr Senard “would make an excellent chairman of Renault”.

Mr Ghosn is also expected to step down as chief executive and chairman of the Renault-Nissan-Mitsubishi alliance. Mr Senard is then expected to take over his roles, according to people close to the group.

Japanese authorities have charged Ghosn with underreporting his income for years, as well as transferring personal trading losses to Nissan. While the executive maintains he has done nothing wrong, two bail appeals in the past week both met with disappointment.

Late last week, Nissan and Mitsubishi issued a joint media release detailing the findings of an internal investigation. In it, the companies exposed another alleged misdeed. Ghosn is accused of receiving “improper” payments from Nissan-Mitsubishi B.V., a Netherlands-based joint venture, of which the disgraced exec served as director.

From the release:

The joint investigation has confirmed that Ghosn entered into a personal employment contract with NMBV [Nissan-Mitsubishi B.V., a Netherlands-based joint venture] and that under that contract he received a total of 7,822,206.12 euros (including tax) in compensation and other payments of NMBV funds. Despite the clear requirement that any decisions regarding director compensation and employment contracts specifying compensation must be approved by NMBV’s board of directors, Ghosn entered into the contract without any discussion with the other board members, Nissan CEO Hiroto Saikawa and Mitsubishi Motors CEO Osamu Masuko, to improperly receive the payments.

In addition, the investigation has also confirmed that soon after the announcement in 2016 that Nissan and Mitsubishi Motors would forge a strategic alliance, Ghosn, former representative director Greg Kelly and others began to explore the possibility of paying undisclosed compensation to Ghosn through an equally-owned Netherlands-based unconsolidated joint venture between the companies.

[Image: Nissan]

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  • Thornmark Thornmark on Jan 24, 2019

    Seems Mr. Bean took Nissan down market and wrecked the brand. Sure that increased sales but also made whole segments unprofitable for better vehicles, like the Fusion, driving them out of the market. Now Nissan wants to undo his damage by restraining discounts, yet all the new Altimas I see are rental cars. How long did it take Cadillac to restore its place after it debased itself by seeking volume and profit over quality?

    • Cdotson Cdotson on Jan 24, 2019

      IF Cadillac ever restores its' place we'll be able to let you know. I thought it ironic Nissan partnered with Mitsubishi since Nissan now appeals to the same market that Mitsubishi did 18-19 years ago and we know how well that worked out for them.

  • IBx1 IBx1 on Jan 24, 2019

    Waiting for this circus of a Japanese coup to end; it's a shame he won't have the authority to fire them all once he gets out.

  • Tassos What was the last time we had any good news from Ford? (or GM for that matter?)The last one was probably when Alan Mulally was CEO. Were you even born back then?Fields was a total disaster, then they go hire this clown from Toyota's PR department, the current Ford CEO, Fart-ley or something.He claims to be an auto enthusiast too (unlike Mary Barra who is even worse, but of course always forgiven, as she is the proud owner of a set of female genitals.
  • Tassos I know some would want to own a collectible Mustang. (sure as hell not me. This crappy 'secretary's car' (that was exactly its intended buying demo) was as sophisticated (transl. : CRUDE) as the FLintstone's mobile. Solid Real Axle? Are you effing kidding me?There is a huge number of these around, so they are neither expensive nor valuable.WHen it came out, it was $2,000 or so new. A colleague bought a recent one with the stupid Ecoboost which also promised good fuel economy. He drives a hard bargain and spends time shopping and I remember he paid $37k ( the fool only bought domestic crap, but luckily he is good with his hands and can fix lots of stuff on them).He told me that the alleged fuel economy is obtained only if you drive it like a VERY old lady. WHich defeats the purpose, of course, you might as well buy a used Toyota Yaris (not even a Corolla).
  • MRF 95 T-Bird Back when the Corolla consisted of a wide range of body styles. This wagon, both four door and two door sedans, a shooting brake like three door hatch as well as a sports coupe hatchback. All of which were on the popular cars on the road where I resided.
  • Wjtinfwb Jeez... I've got 3 Ford's and have been a defender due to my overall good experiences but this is getting hard to defend. Thinking the product durability testing that used to take months to rack up 100k miles or more is being replaced with computer simulations that just aren't causing these real-world issues to pop up. More time at the proving ground please...
  • Wjtinfwb Looks like Mazda put more effort into sprucing up a moribund product than Chevy did with the soon to be euthanized '24 Camaro.