Nissan fires chairman Carlos Ghosn for financial misconduct

Nissan fires chairman Carlos Ghosn for financial misconduct

Here today, Ghosn tomorrow

NISSAN’S board of directors has unanimously agreed to discharge the company’s chairman, Carlos Ghosn, after an internal investigation found him to be guilty of financial misconduct.

As well as ousting the high-profile industry figure, Nissan’s directors also unilaterally agreed to fire the firm’s representative director Greg Kelly. In the same investigation, it was discovered that Kelly was heavily involved with Ghosn’s wrongdoings.

The decision to fire both senior personnel comes shortly after it was confirmed Ghosn and Kelly had been arrested by authorities in Japan. Media reports indicate Ghosn’s sentence has been extended by 10 days, to allow the ex-chairman to be questioned by investigators.

To ensure a scandal like this won’t hit Nissan again, the Japanese car maker will look into the creation of a “special committee”, which will allow the company to consult advice “regarding [its] governance management system”.

In contrast with Nissan’s response to the crisis, the French car maker Renault (which is involved with Nissan through the Renault-Nissan-Mitsubishi Alliance) has decided not to remove Ghosn from the company, though it has begun to implement “transitional governance measures”. These include appointing Renault’s chief operating officer Thierry Bolloré as the deputy chief executive officer in Ghosn’s absence.

Mitsubishi (which joined the Alliance in 2016) also hasn’t formally deposed Carlos Ghosn. However, it has confirmed it will launch its own investigation, and it’s expected the board of directors will also decide to remove Ghosn from the company.

Nissan chairman Carlos Ghosn arrested, set to be fired for “serious misconduct”