Sunday , July 25 2021

The Nissan crisis is deepening as "accusations" in the case of Gon

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.

FILE: Chairman, President and Chief Executive Officer of Nissan Motor Co., Ltd., Carlos Ghosn. Photo: AFP

TOKYO – The Nissan crisis worsened on Wednesday when it turned out that the Japanese automotive giant could be accused of allegedly financially unlawful conduct that led to the stunning arrest of its president, Carlos Ghosn.

The arrest on Monday of the millionaire automaker, who is paying attention to the reunification of Nissan-Renault-Mitsubishi Motors, has sent shock waves across the global automotive sector and corporate Japan.

Best of all, Asahi Shimun Tokyo prosecutors believe that Nissan has a chance to respond to the inadequate accounting of the Ghosn package of about five billion yen ($ 44.5 million) for four years. Both Nissan and the authorities refused to comment on the report.

The Nissan Council will decide on Thursday whether to remove the 64-year-old tycoon as a chairman, a stunning reversal of the status of a Brazilian businessman deserving to create a tripartite alliance that sells more cars together 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. "

He categorically refuses to offer the deep "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 affects Japan Inc. – wiped out millions of the shares of the three companies, but Nissan stepped off slightly in the opening of Tokyo trading, climbing more than half a percent in the falling market.


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.

"Goshen is the most successful foreign president in Japan," said Kosuke Sato, senior economist at the Japan Institute of Research.

"What he did was unprecedented in the corporate history of Japan."

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 owns 43 percent of Nissan, and the Japanese company has 15 percent of Renault.

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

According to Financial Times, Ghosn worked on the merger of the two car makers that Nissan had opposed because it feared that the Japanese company could be transferred to a secondary 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.


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.

Best of all, Yumiuri Shimbun on Tuesday quoted Nissan executive directors who shot Gon as "greedy."

"He says the right things, but in the end it's about money," daily quotes an unnamed senior official.

His arrest has raised alarms among French workers of Renault for what is ahead.

"What worries us is the alliance with Nissan," said Ghislaine, working in the production line at Flins outside Paris, where Nissan's popular Micra model represents half of its output.

– I hope our future is not at risk.

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