Wednesday , January 27 2021

Nissan and Renault are destabilized by the huge collapse of Carlos Ghosn



In June, Carlos Ghosn celebrated his twentieth birthday in Nissan, where he was appointed operations director in 1999. The celebrations were already preparing for the big head that loves parties and costume ball. But on Monday, the world's largest automaker leader was arrested and kept. A little earlier this afternoon, the leader who has become CEO of Renault and chairman of the board of directors of Nissan and Mitsubishi has been arrested, directly on board her private jet at the airport of Haneda, under the camera, I'll take it immediately to the Tokyo Prosecutor's Office.

Based on the results of internal audit, which revealed a number of financial shortcomings achieved by the head at the expense of the builder, the critics explained that they had been accused of having hidden, at least since 2011, that stock market authorities were almost to 5 billion yen in revenue, or 39 million euros.

A shocking shock wheel

In Paris as in Tokyo, the announcement of arresting and the next dismissal of Nissan and Mitsubishi Motors has caused shock wave shock in the business world. "Are you talking to me about thunderclap? But this is a year's underestimate."Strangely, a former superintendent of Renault, goes through the Japanese capital. "I just want to cry"One of the relatives and president Nissan sprayed. At the beginning of the night, all Japanese mainstream agents said the collapse of the French-Lebanese-64-year-old headteacher had celebrated in the 2000s after the spectacular Japanese manufacturer's rescue, and then on end of bankruptcy.

His fate would have been played in a few days. Speaking late at night to try to assure shareholders, Hiroto Saikawa, the successor of Carlos Ghosn on behalf of Nissan, explained that an internal investigation was held first after the exposures, a few months ago, a whistleblower at the managers. According to the man, he made fraudulent tax returns.

Confidential investigations

These confidential investigations would have shown that the chairman of the board, with the help of one of the nearest alliances, Greg Kelly, had actually implemented a number of shortcomings. "Here are both brains of the case", Hiroto Saikawa is summarized. They would have spent the company's money unfairly, in the form of misusing corporate assets. They would also have it "Used"for dishonest purposes, investments and the group, and finally, hidden part of the earnings that Carlos Ghosn received from several entities deliberately.

At the moment, so the leader is not accused of avoiding tax but not communicating his global income, contrary to what is known as "Law of Financial Instruments and Exchange". Crime that can lead to a maximum period of ten years imprisonment and a fine of 10 million yen. "I'm disappointed, hopeless, angry", says Hiroto Saikawa, who has worked for years with Carlos Ghosn before promoting it in April 2017. "These allegations appear to show that the problem is true of judicial origin and that there is no political uprising against Gosn", for believing a French industrialist.

A 8.5% reduction in the stock market

Hiroto Saikawa said the Nissan board would meet as early as Thursday to reject Carlos Ghosn of all his duties but he did not mention the appointment of a successor. Ultimately, Mitsubishi Motors announced that he would also refuse the head that had taken the small maker's rins in 2016 quickly, following an internal scandal and taking money from Nissan. At the end of the day, Renault had not yet published a detailed decision on his fate, despite an 8.5% reduction in deed on Paris square.

Fearing to switch off like the opening of the financial markets Tuesday in Tokyo, Hiroto Saikawa explained that the crisis caused by the arrest of Carlos Ghosn would be the event of a detailed reform of Nissan's corporate governance. "There was a problem because there was too much authority for one person", explained the CEO, before explaining that internal control systems and balance of responsibilities would have to be defined.

Exceptions

"In the first place, Carlos Ghosn made a major reform in Nissan that a few people could have succeeded. But after that, he was good but also bad and stayed in force for a very long time", his successor hid. "In the future, we will have to make sure that we will no longer depend on such an individual"he said, before apologizing to employees of the automaker, dealerships, customers and shareholders.

Strength of the League

The head of Nissan acknowledged that this serious crisis, which follows the disclosures, end of 2017, of performance tests that do not comply with the specific vehicles of the group, then to a scandal, in summer 2018, relates to measurements volumes of the emission of the pollutants of the brand were likely to further damage the manufacturer's sales, at least in Japan. However, he ensured that Carlos Ghosn's departure did not question the strength of the league built, under the impetus of his predecessor, with Renault and Mitsubishi. "I met very recently with the leaders of both groups and I promised them to inform them of developments"Hiroto Saikawa said that only a small leaflet of leaders was given in the secret of investigating a great head.

Although Carlos Ghosn could be released quickly, the Japanese custody can last up to 23 days and, in cases of this type, a ban can be imposed on leaving the country.

Yann Rousseau

Correspondence to Tokyo

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