Mitsubish and Nissan shares fall after chairman arrest

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Few hours after the arrest of chairman Carlos Ghosn yesterday, Mitsubishi and Nissan motor companies have recorded a decline in their shares at the Tokyo trade.

Mr. Ghosn has been at the apex of the Japanese French alliance, Renault-Nissan-Mitsubishi and was detained over allegations of undervaluing his annual income. Prosecutors have also indicated that Ghosn might have been using the corporation’s assets for sequestered activities.

Both Nissan and Mitsubishi are now contemplating eliminating him from his position. The Renault bosses are yet to meet to discuss the posterity of Mr. Ghosn.

In a press conference early today, Nissan said that there had been an internal analysis that raised the red flag, illuminating some ‘acts of misconduct’ by the chairman.

“Too much power was concentrated in the hands of one man,” said a devastated Nissan Chief Executive Hirito Saikawa.

But it is not just Mr. Ghosn who is in hot soup; the Representative director Greg Kelly has also been accused of aiding the financial transgression (conspiring to understate Mr. Ghosn’s salary since2010). In regard to these accusations, Ghosn had been filing his annual securities’ reports containing bogus statements.

The Renault-Nissan-Mitsubishi alliance had been ranked top of all automotive groups worldwide, having sold over 10 million passenger vehicles and light commercial ones, under Ghosn’s leadership. However, the arrest of the company’s chair has placed the future of the alliance under uncertainties.

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Featured Image credits: The CEO Magazine

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