Nissan’s co-chairman arrested in Japan

Nissan Motor Co Chairman Carlos Ghosn was arrested on Monday for alleged financial misconduct and will be fired from the board this week, a dramatic fall for a leader hailed for rescuing the Japanese carmaker from close to bankruptcy.

Ghosn is also chairman and chief executive of Nissan's French partner Renault and one of the best known figures in the global car industry, and his departure will raise questions about the future of the alliance.

Nissan said an internal investigation, triggered by a tip-off from a whistleblower, had revealed Ghosn engaged in wrongdoing including personal use of company money and under-reporting for years how much he was earning.

Nissan CEO Hiroto Saikawa said too much power had been concentrated on Ghosn, a rare foreign executive who enjoyed corporate superstar status in Japan for reviving the ailing Japanese brand.

"The problem of governance was significant," Saikawa said, confirming the arrest of Ghosn in Japan.

"Looking back, after 2005 when he became CEO of both Renault and Nissan, we did not really discuss the implications."

Saikawa, a long-standing lieutenant to Ghosn, said he could not give specifics on the personal use of company money, but that the wrongdoing was serious and had gone on for years.

Ghosn could not be reached for comment, reports Reuters.

"To have so greatly violated the trust of many, I feel full of disappointment and regret," Saikawa told a late night news conference. "It's not just disappointment, but a stronger feeling of outrage, and for me, despondency."

Saikawa took over as Nissan CEO from Ghosn last year. Ghosn once told reporters the two thought alike.

Saikawa said he would propose at a board meeting on Thursday to remove Ghosn and Representative Director Greg Kelly, who was also accused of financial misconduct. Kelly could also not be reached for comment.

Renault shares tumbled 11 per cent in Paris to be among the worst performing stocks in Europe. Nissan's German-listed securities dropped 10 per cent.

French President Emmanuel Macron said the government, Renault's top shareholder, was closely monitoring the situation.

Spokesmen for Renault and the Renault-Nissan-Mitsubishi Motors alliance did not immediately return calls and messages seeking comment.