Sunday , August 1 2021

Ghosn's retention continued as the crisis deepened in Nissan

Japanese authorities on Wednesday extended the term of detention of California giant president Carlos Guman for 10 days, as it turned out that the auto giant itself could be accused of allegedly financially unscrupulous conduct that prevented its once-beloved leader.

The stunning arrest on Monday of the millionaire auto attendant, who is paying attention to the reversal of the Nissan-Renault-Mitsubishi Motors Alliance, has sent shock waves across the global automotive sector, corporate Japan and beyond.

On Wednesday, several media reported that the Tokyo district court ordered a 64-year-old businessman born in Brazil to be held for another 10 days as prosecutors stepped up their investigation into the alleged under-reporting of the Ghosn package of about five billion yen $ 44.5 million).

Prosecutors had 48 hours after their arrest to file formal accusations, release it or request a ten-day extension to continue the probe.

The automotive titanium remains in the Detroit detention center in northern Tokyo in conditions far from its glamorous lifestyle. "In principle, he will be alone in a cage," lawyer Ayano Kanezuka told AFP.

"There's everything you need, heating, a bed, but the conditions are spartan," said Kanezau's colleague Lionel Vincent, who also said he would have a patio with bars.

The crisis seemed worse for Nissan, as Asahi Shimbun reported that prosecutors believe the company also has a chance to respond. Nissan and the authorities refused to comment.

– "Too much authority"

The Nissan Board will decide on Thursday whether to remove it as chairman, a stunning reversal of happiness for the once-honored manager who created the tripartite alliance that sells more cars in the world than any other carmaker.

Ghosn's fate appears but is not sealed after his handy deputy CEO, Hiroto Sayka, fired an astonishing broad side of his mentor, saying that he had "too much power" in his hands and complained about "the dark side of the Gong Age. "

Saikika strongly refuses to offer the profound "apologetic bow" that usually accompanies corporate scandals in Japan and weakens the role that Gon plays personally to revive the company's fate.

However, in France, Renault said he adhered to the fallen manager as CEO, although he appointed Chief Operating Officer Thierry Bollor as Deputy Chief Executive, giving him "the same powers" as "Temporarily Inappropriate" Gon.

After an extraordinary meeting, Reno called on his sister Nissan to share "evidence apparently collected" against Gon from a one-month internal investigation, saying he was unable to comment on the allegations without this information.

Paris and Tokyo are trying to limit the drop out of custody, with both countries' finance ministers claiming strong support for "one of the biggest symbols of French-Japanese industrial co-operation."

The scandal – the latest in a string that hit Japan Inc. – wiped out millions of the shares of the three companies, but Nissan stepped down slightly in the opening of Tokyo trade, rising nearly half a percent in a falling market.

And Ghon won some support on the Tokyo street, passing by Yoshiki Wattanabe told AFP: "I think this is a man who is capable of doing what the Japanese left in our ways could not do."

– "Famous Ways of Glory"

Ghosn has once been a favorite of corporate and even popular Japan – even with a manga-inspired comic inspired by him – and has been a glue that has been holding auto-binding together since 1999.

He had a reputation as a workaholic and earned the nickname "Le Cost Cutter" in France for his approach to corporate restructuring.

Under his guidance, Nissan and Renault become deeply entangled.

Renault holds 43 percent of Nissan, and the Japanese company, in turn, has 15 percent of Renault.

Nissan has become a key alliance player but sold 12 trillion yen (106 billion dollars) last year, compared to Renault's 59 billion euros (67 billion dollars).

According to the Financial Times, Ghon has been working on the merger of the two carmakers that Nissan has opposed because it feared that the Japanese company could be transferred to a minor role.

Jeff Kingston, director of Asian research at Temple University Japan, told AFP that Ghosn is "the victim of its own hybrid and success."

"He trampled the Japanese cultural norms with his magnificent paths, and his enormous compensation incited jealousy and called for repression," he told AFP.

– "greedy" –

Local media reported that Nissan's deputy director Greg Kelly, arrested alongside Gon, has ordered other directors to "hide wages."

Some compensation due to other directors eventually went to Ghosn, although it is not clear how the scheme works.

The public service broadcaster NHK reported that Nissan had paid "huge sums" to provide Ghosn with luxury homes in Rio de Janeiro, Beirut, Paris and Amsterdam "without any legitimate business cause."

Even when his reputation was unfavorable, he attracted criticism for a perverse way of life contrary to traditional Japanese corporate culture and his salary – a total of about 13 million euros last year.

The media also reported a magnificent "Maria Antoinette" party in 2016 for Gao's second wedding, in the spectacular Versailles Palace.

Milling-Ric / Aph

Carlos Gon is probably the most famous foreign CEO in Japan

The Nissan crisis seemed to worsen day after day

Comparison of Key Statistics for Renault and Nissan (2017 digits)

Ghosn on happier days

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