Ghosn Re-Arrested Under New Allegations: LEAF e-Plus Debut Postponed?

DEC 22 2018 BY MARK KANE 37

Carlos Ghosn will spend Christmas in detention

After about a month in detention in Japan, it was expected that Carlos Ghosn – who leads the Renault-Nissan-Mitsubishi Alliance – would be free on Friday 21, as Tokyo District Court unexpectedly rejected prosecutors’ request to extend the arrest.

Reporters were ready for a press conference with Carlos Ghosn, but as often happens in Japan, prosecutors announced new allegations to gain another 10 days of arrest (at least through the end of this year).

It’s already his third arrest, which will extend the total detention to about 40 days, during which the suspect can be held, interrogated (up to eight hours a day) without the presence of a lawyer, while prosecutors pursue their investigations without indictment. Interestingly, Greg Kelly is not included in the third set of allegations, which in theory opens up his chance for release on December 25.

“The Tokyo prosecutor said the fresh arrest was based on suspicions that around October 2008, Ghosn shifted personal trades to the automaker to make it responsible for 1.85 billion yen ($16.6 million) in appraisal losses, and inflicted damage on Nissan by having it deposit a total of $14.7 million on four occasions between June 2009 and March 2012 into a related bank account. “

The maximum penalty, if the allegations are proven, is 10 years in prison and/or fines (over $6 million).

Sequence:

  • Nissan initiated an internal investigation about Carlos Ghosn’s earnings
  • November 19 – Carlos Ghosn and Greg Kelly were surprisingly arrested in Japan over alleged financial misconduct at Nissan (under-reporting his income of some $44 million in 2010-2015)
  • November 22 – The board of directors for Nissan removed Carlos Ghosn and Greg Kelly from Representative Director positions (Ghosn was also Chairman of the Board).
  • November 26 – Mitsubishi Motors removed Carlos Ghosn from his role as Chairman of the Board and Representative Director, following Nissan.
  • Renault abstained from the reaction
  • Nissan was unable to choose a successor for Ghosn
  • December 10 – Carlos Ghosn and Kelly were re-arrested on allegations of under-reporting his income for the subsequent three years
  • December 20 – Tokyo District Court unexpectedly rejected prosecutors’ request to extend Ghosn’s and Kelly’s. Ghosn was expected to be free on December 21
  • December 21 – Carlos Ghosn was re-arrested on a new allegation of making Nissan shoulder $16.6 million in personal investment losses. Kelly was not included so he is expected to be free on December 25.

The main question about Carlos Ghosn is about the internal situation in Renault-Nissan-Mitsubishi Alliance. The three separate entities were acting as an alliance, but apparently, not everyone was happy about the leading role of Renault, which owns 43% of Nissan.

The Japanese company was rescued from near-bankruptcy by Carlos Ghosn, but the Japanese government and probably some of Nissan’s shareholders weren’t happy about a possible upcoming merger/acquisition of Nissan by Renault. It could be a reason to remove Carlos Ghosn (as well as why Renault is not removing Ghosn).

The other thread is that Carlos Ghosn apparently intended to remove current Nissan CEO Hiroto Saikawa because of poor results of the company.

Well, it seems that the upcoming press conference with Carlos Ghosn (in January at the earliest) could be an earthquake for the Nissan and Alliance. Not a good sign for Nissan, which already postponed LEAF e-Plus “to ensure that this important product unveiling could receive the coverage it merits”.

Source: Reuters, Reuters, BBC

Categories: Mitsubishi, Nissan, Renault

Tags: ,

Leave a Reply

37 Comments on "Ghosn Re-Arrested Under New Allegations: LEAF e-Plus Debut Postponed?"

newest oldest most voted

Nissan and Japan are idiots

Yes, they absolutely are.

#ReleaseCarlosGhosnAndGregKelly

+1
Please proceed with the hashtag.

Maybe he should not have made “these transactions” in the first place, don’t you think so ?

These were legal transactions allowed by the authorities in the first place, years ago.

They don’t like foreigners running their companies any more than they like foreigners dating their women. Great people, terrible nationalism.

If they don’t like foreigners managing their companies, maybe they had must put japanesse money on Nissan 20 years ago, but nobody but Renault, did it. Renault and Goshn, took a lot of risk, Renault put all its cash in that operation, and affected the development of the products in early 2000’s, products that were problematic and even today, give a bad reputation to Renault.

NISSAN should be BOYCOTTED.

What do you expect from a nation that don’t acknowledge their past war crimes?

https://www.bbc.com/news/av/world-asia-33758720/japan-war-atrocities-lies-and-fabrication

You fanboys sound like some mental asylum. War crimes, racist attacks on the whole nation.

Just because some sleazy executive that you associate with your beloved product finally get caught silently siphoning millions of shareholder money and got into jail. Yes many others do the same and are not caught yet or ever. Try such silly defense in court sometime :/

You’re clueless and heartless post.

Why don’t you post your hate elsewhere.

I’m not Japanese, and find your reference to them racist. I’m old enough to know how few are left, from when it was used more freely. ‘B666’, let’s not burst onto Inside EVs and be that incendiary, please.

Above said, it is amazing the actions Japan is taking with this tier of global corporate leadership. The story is not getting the press it should.

It is already clear that these two are innocent. The japs lost all their honor.

I only read about Ghosn’s news from EV sites like InsideEVs. Can you share some links to the news that he is innocent?

Here’s a news flash….

Innocent until proven otherwise ‼️

Innocent until proven guilty is more of a Justinian concept, later a precept of English Common Law. It has been adopted by other societies, but it hasn’t taken as fundamental a position in the laws of the East.

Please speculate more in article titles. This one, about a possible postponement of the e-Plus reveal, wasn’t quite awful enough.

Wow, Japan really knows how protectionism works. Foreign company bails out a local company that’s going bankrupt. Then local government gets annoyed that foreign company owns too much of local company, so they trump up some white collar charges against CEO.

I just can’t believe they’re actually holding him in jail. Let him plead, fine him, and move on with breaking up the alliance to benefit Nissan and Mitsubishi.

Americans think it was bad to bail out GM, but this is a whole different level. And, since the title has some random speculation, here is my own: It was all Toyota’s doing because they hate BEVs and want to kill the Leaf!

Bingo ‼️

The jap dog has bitten and doesn’t want to let go the prey.

He deserves to be arrested for not selling 64kwh version in 1Q of 2018

You deserve to be detained for your silly post

The decision to delay the introduction of the Leaf E-Plus is curious in that Nissan will soon hit their 200,000 unit phase out point for the U.S. tax credit. There is no doubt that a diminished tax credit will hurt sales of this vehicle which Nissan badly needs to stay relevant in the EV market. I wonder if this Ghosn thing isn’t being used to cover up unresolved technical issues.

More Sales for Tesla.
Amazing decision.

There at about 125K US LEAF sales – far from the 200K phaseout so not likely a factor.
Technical issues? Perhaps.
Competitive price/specs and still profitable? Hmmmm….

Most of the world is very happy with the current version and they are expanding sales into new markets. The US may be less of a priority if they can’t produce a compelling product at a competitive price for this market.

Nissan very good idea to destroy Carlos who saved your as…es

Yeah. Very small people down on their knees without any dignity or honor, no cash, and no technical capabilities.

Another Euro point of view

The reputational damage of this as regards Japan as a place to invest or conduct business at this stage is huge. Benefiting from that will be once again China.

Yes, medieval judicial system. Apparently Nissan can’t pay their own bill, so they had to behave criminals. There are also issues with or on the International law scene. Expect severe repercussions.

Odd than when MacArthur created their government he didn’t give them a better justice system.

So the company grinds to a halt because of one man, again and they still have no thermal management on batteries, never again will I own a Nissan.

Looks like the the Yamaguchi Gumi are holding on to Carlos, for yet another round of so called “dispute resolution”.

Renault should offer up additional compensation to their previously rejected undisclosed release offer soon. Hopefully a new release deal materializes, that is before any additional failed negotiations devolve to the next level.

The Yakuza will probably refuse to bring in the Heavy Bosses, upping the ante. Soliciting bribes and extortion influence beyond traditional industry norms, will be avoided at all cost. This should play out, according to plan, as business as usual.

There was an interesting tidbit on DailyKanban about “weaponized shareholder agreements” that Nissan and Renault have entered into, which throws a whole new wrinkle into the corporate fight to control Nissan.

“Renault holds 43.4% of Nissan, whereas Nissan only holds 15% non-voting shares of Renault…”

“Then there is an interesting stack of weaponized shareholder agreements, known only to deep insiders. For instance, Renault could fire Saikawa immediately. The shareholder agreement is said to stipulate that Renault can name the Chief Executive Officer, the Chief Financial Officer, and the Chief Planning Officer.”

“A well-informed insider agrees that the posturing and mudslinging reminds of the wild accusations that go with divorce proceedings. According to him, it now depends on who makes the next move,”

“’Renault could place the three executive directors it is entitled to, take control of the board, and merge Nissan into Renault,’ he said. ‘Or Nissan could buy 10% of Renault, and dissolve the relationship.’

“’What????’”

‘I think that shareholder agreement says that if Nissan holds 25% of Renault, Renault’s voting rights in Nissan would be nullified.’

😳

https://dailykanban.com/2018/12/nissans-enhanced-governance-no-head-for-months-and-2-lurking-surprises/

With these corporate wars one never knows how it ends. Remember the Porsche-VW battle 10 years ago.
In 2019 it will be definitely interesting to watch Renault-Nissan-Mitsubishi alliance.

No they are going to go with the CES launch die to the flak they got last time

This is a flagrant violation of international laws. 1st they should release Mr. Carlos Ghosn and put him in house arrest and then proceed with the case instead of keeping him in jail.

This saikawa is a notorious guy and even Mitsubishi is not willing to work with Nissan.

You see the picture above. Nissan itself has 3 makes:
Nissan: Standard vehicles
Infiniti: Luxury vehicles
Datsun: Basic vehicles.

So they will try to promote all 3 makes at any cost and suppress Mitsubishi. Better Mitsubishi allies with Renault and walks away from Nissan.

Leave a review for the Tokyo Detention Center where Ghosn is being held.

Tokyo Detention House
1 Chome-35-1 Kosuge, Katsushika-ku, Tōkyō-to 124-8565, Japan
+81 3-3690-6681
https://maps.google.com/?cid=11763169993394238669