By on January 23, 2019

Carlos Ghosn

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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12 Comments on “Ghosn’s Days As an Auto Executive Could End Tomorrow...”

  • avatar

    His days with Nissan are over, but after the storm blows over he’ll be hired by another automaker or equally sized conglomerate. Good CEO’s are hard to find…

    • 0 avatar

      I hope that was an attempt at humor, but if not..

      Really? And the alleged misdeeds dont take away from his status of being a “good CEO”?

      • 0 avatar

        Ehh, good CEOs whether they have a criminal record or not, are hard to find. This guy has done it once before, maybe he could do it again (like Lee Iacocca). Bad CEOs? Bob Nardelli and Jim Hackett are still at it. One damned near killed Chrysler and it appears the other is trying to kill Ford…

        • 0 avatar

          Exactly, although he’s probably too nuclear for Ford to ask him to be their CEO again (pretty sure they asked him, along with Dieter Z before Mulally took the job) I am betting a Chinese company steps up eventually. Hacket is on borrowed time.

    • 0 avatar
      SCE to AUX

      I’d like to see him resurface at Tesla as CEO. He understands electric vehicles, and he would bring stability to a place that desperately needs it.

      But if he’s proven to be a crook, then no.

      Sitting in my internet armchair, I admit that his harsh treatment really makes me sympathetic to him. I’m all about being ‘tough on crime’, but something about this story smell fishy – inside the Alliance and in Japan.

      • 0 avatar

        “But if he’s proven to be a crook”

        People of his station in life don’t do their own taxes.

        Hell, I’m just a lowly peasant and I don’t do my own taxes because it is simply too complicated with all the documents that have to accompany the 1040 for the various forms of income and real-property deductions.

        I bet his tax filings are much more complicated than mine, and his have to be filed internationally.

        I’d like to see how this case develops as it goes through the Japanese courts.

    • 0 avatar

      Do you mean like Carmine Galante he will work from jail? IMO his mistake was that he thought he was untouchable. Like too big to fail.

    • 0 avatar

      He’s 65—win or lose (and he has already lost), I think his CEO days are over.

  • avatar

    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?

    • 0 avatar

      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.

  • avatar

    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.

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