Once portrayed as a Japanese manga superhero, Nissan chairman Carlos Ghosn has been ousted from his position following an arrest for what’s been referred to as “significant acts of misconduct.”
According to an internal investigation, both Ghosn and another top executive have not only been under-reporting their income but have also been participated in numerous other gross acts of misconduct as well. Once such example of this unethical behavior is the use of company assets for personal use.
The once-powerful chairman is known for bringing the company back from the brink of bankruptcy nearly two decades ago, reviving the company and helping to bring it to its present standings.
However, this astonishing announcement of Ghosn’s arrest will more than likely have a negative effect on the powerful global alliance he helped to establish in the manner of a formal partnership between carmakers Nissan, Renault, and Japan’s Tokyo-based Mitsubishi Motors.
Nissan had a media event scheduled for Monday evening, but neither Renault nor the Alliance made up by the three motor companies had any comments concerning the situation.
After Nissan letting Ghosn go, it is not clear what the other two companies’ decisions regarding the current circumstances will be. The Brazilian-born ex-chairman had become Nissan’s CEO when he purchased the controlling stake in 2001, remaining in the position until last year.
Nonetheless, at this point, the other companies may very well become concerned about his conduct discovered by Nissan officials concerning their own companies as well. The alliance, which is made up of the three companies, presently form the largest global auto-making partnership. In fact, one out of every nine vehicles sold in the world comes from one of their factories.
The stunning announcement about Ghosn’s improprieties sent global shockwaves as the stocks of both Nissan and Renault plummeted. Shares in Nissan decreased about ten percent while Renault’s stock dropped as much as thirteen percent.
What happens next is anyone’s guess. Renault was said to have been convening their board soon to discuss the issues while French president Emmanuel Macron commented that the government would be watching closely as well since they own fifteen percent of Renault.
Nissan apologized in a statement issued by the company, saying they will take appropriatemeasures to remedy the situation.