Tuesday , November 24 2020

The Mitsubishi Motors Council decides whether to expel Ghosn

Yuri Kazeyama, Associated Press

Posted Sunday, November 25, 2018, 23:35 EST

TOKYO – The Mitsubishi Motors Management Board met on Monday to decide whether to remove Carlos Gon as the chairman of the Japanese automaker who is a Renault-Nissan ally.

Ghosn was arrested a week ago on suspicion that he did not count his millions of dollars in income for five years. Nissan Motor Co., who has already expelled him as its chairman, said an internal investigation found that Ghosn had abused the company's money and assets.

Mitsubishi Motors Corp. said the seven members of her eight-member board would meet later in the day.

Ghosn's arrest on 19 November marked the stunning fall of an executive who dominated the Japanese automotive industry for two decades and headed the Nissan alliance with Renault SA of France.

Ghosn also led to the addition of Mitsubishi to the Alliance. Nissan took 34% of Mitsubishi shares in 2016

Tokyo prosecutors accuse Ghosn of not announcing her income by 5 billion yen ($ 44 million) for five years.

It is not yet possible to get a comment from Gon for the charges. The Japanese media, citing unidentified sources, reported that Ghoh and Greg Kelly, CEO, who was arrested on suspicion of cooperating with Gon, have confirmed their innocence.

Neither Gon, nor Kelly are accused.

Under Japanese law, a suspect may be detained for three weeks for suspected charges without charge.

Renault retained Gos as CEO. There is little opposition to Mitsubishi, given the composition of the board, to the expulsion of Ghosn.

The board consists of Ghosn, Mitsubishi Motors Chief Executive Osamu Masuko, two of Nissan, two of the Mitsubishi Group companies and two outsiders – a writer and an academician.

Concerned about the future of the alliance between Renault and Nissan. The future of the alliance with Mitsubishi, which is more recent, may be even more uncertain.

Alliances are often beneficial to carmakers because they share technology, auto parts and vendors and trade networks. Sales volumes tend to reduce costs.

According to analysts, such sharing has become increasingly important in recent years as companies develop electric vehicles, net connectivity and artificial intelligence for cars.

Source link