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| Nissan to sack chairman Carlos Ghosn over 'serious misconduct' - as it happened | Nissan to sack chairman Carlos Ghosn over 'serious misconduct' - as it happened |
| (12 days later) | |
| And finally, here’s our latest take: | And finally, here’s our latest take: |
| Carlos Ghosn, the chairman of Nissan and one of the world’s most powerful automotive executives, has been arrested by Japanese prosecutors in a move that sent shockwaves through the industry. | Carlos Ghosn, the chairman of Nissan and one of the world’s most powerful automotive executives, has been arrested by Japanese prosecutors in a move that sent shockwaves through the industry. |
| The 64-year-old French-Brazilian is suspected of having understated his income on financial statements and was exposed by a whistleblower. Nissan said it will fire him this week as the company admitted it had left him in control for too long. | The 64-year-old French-Brazilian is suspected of having understated his income on financial statements and was exposed by a whistleblower. Nissan said it will fire him this week as the company admitted it had left him in control for too long. |
| Ghosn is regarded as one of the leading figures in the global car industry, having forged an alliance between France’s Renault, Nissan and Mitsubishi that created the world’s second-largest car manufacturer. As well as chairing Nissan, Ghosn is chief executive and chairman of Renault and chairman of Mitsubishi. | Ghosn is regarded as one of the leading figures in the global car industry, having forged an alliance between France’s Renault, Nissan and Mitsubishi that created the world’s second-largest car manufacturer. As well as chairing Nissan, Ghosn is chief executive and chairman of Renault and chairman of Mitsubishi. |
| In a statement, Nissan said that “over many years” Ghosn and another senior executive, Greg Kelly, had been “reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation”.... | In a statement, Nissan said that “over many years” Ghosn and another senior executive, Greg Kelly, had been “reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation”.... |
| Nissan boss Carlos Ghosn's arrest in Japan shocks auto industry | |
| Goodnight! GW | Goodnight! GW |
| Here’s more reaction to the Ghosn story: | Here’s more reaction to the Ghosn story: |
| #Ghosn’s arrest in Tokyo on “misconduct” allegations an extraordinary end to a storied career. “Ghosn shock” all the greater in #Japan given his role in saving near bankrupt Nissan from 1999. Raises questions over future of Renault-Nissan-Mitsubishi alliance. #ゴーン会長逮捕 | #Ghosn’s arrest in Tokyo on “misconduct” allegations an extraordinary end to a storied career. “Ghosn shock” all the greater in #Japan given his role in saving near bankrupt Nissan from 1999. Raises questions over future of Renault-Nissan-Mitsubishi alliance. #ゴーン会長逮捕 |
| #CarlosGhosn is unsurprising example of corporate greed, says Arthur Wheaton @cornellilr @workerinstitute #Nissan, full comments here: https://t.co/VhW8w3NdHk | #CarlosGhosn is unsurprising example of corporate greed, says Arthur Wheaton @cornellilr @workerinstitute #Nissan, full comments here: https://t.co/VhW8w3NdHk |
| ET TU BRUTE? The toppling of Carlos Ghosn at @Nissan Looks a Lot Like a Palace Coup. 'The downfall of kings is bloody & swift' @davidfickling https://t.co/3D08svaEYr @bopinion | ET TU BRUTE? The toppling of Carlos Ghosn at @Nissan Looks a Lot Like a Palace Coup. 'The downfall of kings is bloody & swift' @davidfickling https://t.co/3D08svaEYr @bopinion |
| Renault’s shares never really recovered from the shock of Carlos Ghosn’s arrest and imminent dismissal from Nissan. | Renault’s shares never really recovered from the shock of Carlos Ghosn’s arrest and imminent dismissal from Nissan. |
| After a wild day’s trading, they have closed down over 8% at €59.06, as traders worry that the Nissan-Renault alliance could be in jeopardy. | After a wild day’s trading, they have closed down over 8% at €59.06, as traders worry that the Nissan-Renault alliance could be in jeopardy. |
| Tim Hubbard, assistant professor of management in the University of Notre Dame’s Mendoza College of Business, argues Nissan has learned the perils of giving one executive too much power: | Tim Hubbard, assistant professor of management in the University of Notre Dame’s Mendoza College of Business, argues Nissan has learned the perils of giving one executive too much power: |
| “Carlos Ghosn’s arrest and, soon to be, dismissal over financial misconduct is yet another—all too frequent—example of a top executive being dismissed for misconduct in the executive suite. | “Carlos Ghosn’s arrest and, soon to be, dismissal over financial misconduct is yet another—all too frequent—example of a top executive being dismissed for misconduct in the executive suite. |
| Ghosn was one of the car industry’s most prominent executives who has been responsible for breathing life back into Nissan. Ghosn’s arrest complicates a highly interconnected set of relationships between Nissan, Renault and Mitsubishi Motors. The equity stakes that they have between each other may be at risk. This has widespread implications for a large portion of the auto industry as these alliances have become more critical in the increasingly interconnected design, manufacturing, and support of auto customers worldwide. | Ghosn was one of the car industry’s most prominent executives who has been responsible for breathing life back into Nissan. Ghosn’s arrest complicates a highly interconnected set of relationships between Nissan, Renault and Mitsubishi Motors. The equity stakes that they have between each other may be at risk. This has widespread implications for a large portion of the auto industry as these alliances have become more critical in the increasingly interconnected design, manufacturing, and support of auto customers worldwide. |
| Ghosn’s arrest is another unfortunate example of the perils of having too much power concentrated in one individual within—and across—corporations.” | Ghosn’s arrest is another unfortunate example of the perils of having too much power concentrated in one individual within—and across—corporations.” |
| My colleague Jasper Jolly has written a neat profile of Nissan’s Ghosn, and his sudden fall from grace. | My colleague Jasper Jolly has written a neat profile of Nissan’s Ghosn, and his sudden fall from grace. |
| Here’s a flavour: | Here’s a flavour: |
| Carlos Ghosn was, until Monday, a titan of the global car industry. The first person to lead two Fortune 500 companies at the same time, he also enjoyed an almost unique position as a foreign chief executive of a major Japanese company – even gaining the honour of a manga comic book version of his life and rice sculptures of his face in bento lunchboxes sold to Japanese businessmen. | Carlos Ghosn was, until Monday, a titan of the global car industry. The first person to lead two Fortune 500 companies at the same time, he also enjoyed an almost unique position as a foreign chief executive of a major Japanese company – even gaining the honour of a manga comic book version of his life and rice sculptures of his face in bento lunchboxes sold to Japanese businessmen. |
| Yet in a remarkable development which has shocked the automotive industry, Ghosn will now be dismissed by Nissan on Thursday after alleged financial irregularities. Nissan did not hold back in its statement on Ghosn, accusing him and a senior colleague of “significant acts of misconduct” including understating his pay to regulators and misusing company assets. Renault and Mitsubishi Motors, both of which Ghosn also chairs, have yet to respond. | Yet in a remarkable development which has shocked the automotive industry, Ghosn will now be dismissed by Nissan on Thursday after alleged financial irregularities. Nissan did not hold back in its statement on Ghosn, accusing him and a senior colleague of “significant acts of misconduct” including understating his pay to regulators and misusing company assets. Renault and Mitsubishi Motors, both of which Ghosn also chairs, have yet to respond. |
| The ousting leaves the Renault-Nissan-Mitsubishi alliance – the maker of one in every nine cars manufactured worldwide last year – without its totemic leader as the electric and autonomous car revolutions threaten to upend the business models of established car manufacturers. | The ousting leaves the Renault-Nissan-Mitsubishi alliance – the maker of one in every nine cars manufactured worldwide last year – without its totemic leader as the electric and autonomous car revolutions threaten to upend the business models of established car manufacturers. |
| Born in Brazil in 1954 to Lebanese immigrants, Ghosn’s ascent to the pinnacle of the global car industry began in France, where he studied at the prestigious École Polytechnique in Paris before joining Michelin, the French tyre manufacturer. At 27 he was manager of a Michelin factory in France; at 36 he was chief executive of the firm’s North American operations. | Born in Brazil in 1954 to Lebanese immigrants, Ghosn’s ascent to the pinnacle of the global car industry began in France, where he studied at the prestigious École Polytechnique in Paris before joining Michelin, the French tyre manufacturer. At 27 he was manager of a Michelin factory in France; at 36 he was chief executive of the firm’s North American operations. |
| In 1996 Ghosn (which rhymes with “cone”) was poached by Renault, where he made his mark with a deep restructuring – earning a reputation for a sleek but ruthless management style, and a nickname, “Le Cost Killer”.... | In 1996 Ghosn (which rhymes with “cone”) was poached by Renault, where he made his mark with a deep restructuring – earning a reputation for a sleek but ruthless management style, and a nickname, “Le Cost Killer”.... |
| More here: | More here: |
| Carlos Ghosn: Nissan scandal slams brakes on cost killer's career https://t.co/S9legiVHR7 | Carlos Ghosn: Nissan scandal slams brakes on cost killer's career https://t.co/S9legiVHR7 |
| Update: Nissan President and CEO Hiroto Saikawa did give the media a bow as he exited today’s press conference, as these photos show: | Update: Nissan President and CEO Hiroto Saikawa did give the media a bow as he exited today’s press conference, as these photos show: |
| The FT’s Peter Campbell watched Nissan’s press conference, and was stuck by the way that Nissan CEO Hiroto Saikawa deeply criticised chairman Carlos Ghosn: | The FT’s Peter Campbell watched Nissan’s press conference, and was stuck by the way that Nissan CEO Hiroto Saikawa deeply criticised chairman Carlos Ghosn: |
| Saikawa says he finds it hard to find words to express how he feels. "Despair, indignation, resentment”. Adds: "I will identify all the issues and take necessary countermeasures." | Saikawa says he finds it hard to find words to express how he feels. "Despair, indignation, resentment”. Adds: "I will identify all the issues and take necessary countermeasures." |
| Saikawa: "This is the negative aspect of the long regime of Mr Ghosn. This is a fact that we need to admit." | Saikawa: "This is the negative aspect of the long regime of Mr Ghosn. This is a fact that we need to admit." |
| Saikawa says current Alliance structure "concentrates power on one individual, this is not the only cause but it is one of the factors or drivers"."Because one individual was powerful for years, this has a big significant impact." | Saikawa says current Alliance structure "concentrates power on one individual, this is not the only cause but it is one of the factors or drivers"."Because one individual was powerful for years, this has a big significant impact." |
| Conference ended. In total, an extraordinary, extraordinary, performance by Saikawa with the seeming intention of putting clear water between Nissan and Ghosn. | Conference ended. In total, an extraordinary, extraordinary, performance by Saikawa with the seeming intention of putting clear water between Nissan and Ghosn. |
| Nissan’s dramatic press conference in Tokyo ended with another apology from Saikawa, this time for not being able to answer many of the media’s questions. | Nissan’s dramatic press conference in Tokyo ended with another apology from Saikawa, this time for not being able to answer many of the media’s questions. |
| However, I don’t believe he gave the traditional bow of contrition, which we’ve seen in previous Japanese corporate scandals. | However, I don’t believe he gave the traditional bow of contrition, which we’ve seen in previous Japanese corporate scandals. |
| Very unusual Nissan press conference is over: CEO Saikawa – speaking alone with no bow of apology – spoke frankly of what he saw as an over-concentration of power in the hands of Ghosn | Very unusual Nissan press conference is over: CEO Saikawa – speaking alone with no bow of apology – spoke frankly of what he saw as an over-concentration of power in the hands of Ghosn |
| IN a 90 minute press conference at Nissan headquarters, Hiroto Saikawa, CEO of Nissan, did not bow in apology. In Japan, that’s rare | IN a 90 minute press conference at Nissan headquarters, Hiroto Saikawa, CEO of Nissan, did not bow in apology. In Japan, that’s rare |
| Over in France, a union official has welcome the news that Ghosn is in hot water over his pay and alleged misuse of Nissan assets. | Over in France, a union official has welcome the news that Ghosn is in hot water over his pay and alleged misuse of Nissan assets. |
| Associated Press have the details: | Associated Press have the details: |
| Ali Kaya, who heads the CGT union at a Renault factory in Flins outside Paris, said “the most shocking thing is that these people were not arrested well before this.” | Ali Kaya, who heads the CGT union at a Renault factory in Flins outside Paris, said “the most shocking thing is that these people were not arrested well before this.” |
| He lamented that the public has grown inured to “astronomical sums” paid to Ghosn and other executives. The powerful, hard-left CGT has long campaigned to cap executive pay. | He lamented that the public has grown inured to “astronomical sums” paid to Ghosn and other executives. The powerful, hard-left CGT has long campaigned to cap executive pay. |
| Nissan CEO Saikawa is still being quizzed by Japanese reporters, desperate for more details about Carlos Ghosn’s impending sacking. | Nissan CEO Saikawa is still being quizzed by Japanese reporters, desperate for more details about Carlos Ghosn’s impending sacking. |
| He says that Nissan’s internal investigation into the misconduct is almost complete, but won’t comment on whether any other people are involved. | He says that Nissan’s internal investigation into the misconduct is almost complete, but won’t comment on whether any other people are involved. |
| Saikawa also explains that representative member Greg Kelly was a close advisor to Ghosn. | Saikawa also explains that representative member Greg Kelly was a close advisor to Ghosn. |
| Saikawa is really putting the boot into Carlos Ghosn now, claiming that the chairman’s long reign had a “negative impact” on business operations | Saikawa is really putting the boot into Carlos Ghosn now, claiming that the chairman’s long reign had a “negative impact” on business operations |
| He does concede, though, that Ghosn had implemented valuable reforms and restructuring in his early days at Nissan. | He does concede, though, that Ghosn had implemented valuable reforms and restructuring in his early days at Nissan. |
| Some instant reaction to the Nissan press conference: | Some instant reaction to the Nissan press conference: |
| Crisis Comms 101 at Nissan press conference. No company logo visible. https://t.co/oTQVNCWi1R pic.twitter.com/4u3KrwM30h | Crisis Comms 101 at Nissan press conference. No company logo visible. https://t.co/oTQVNCWi1R pic.twitter.com/4u3KrwM30h |
| Nissan says corporate and investment funds misused by Ghosn | Nissan says corporate and investment funds misused by Ghosn |
| Reporter calls news of misconduct investigation of Ghosn a coup d’etat | Reporter calls news of misconduct investigation of Ghosn a coup d’etat |
| #Nissan CEO says concentration of power of Ghosn led to this misconduct, this is not a coup d’etat by “other forces” | #Nissan CEO says concentration of power of Ghosn led to this misconduct, this is not a coup d’etat by “other forces” |
| This Nissan press conference is absolutely extraordinary. | This Nissan press conference is absolutely extraordinary. |