Shares of Japanese automakers Nissan plunged more than 5.5 percent in the morning after a glut in sell orders following the arrest of company chairman Carlos Ghosn over allegations of financial misconduct.
Shares of Japanese automaker Nissan tumbled 5.5 percent in early trade on Tuesday after its chairman, Carlos Ghosn, was arrested on Monday over allegations of financial misconduct .
The auto giant said in a statement on Monday that “over many years” Ghosn and board director Greg Kelly had been under-reporting compensation amounts to the Tokyo Stock Exchange securities report.
Nissan added that, in regards to Ghosn, “numerous other significant acts of misconduct have been uncovered, such as personal use of company assets.” The company said Ghosn had also made inappropriate investments.
In a press conference Monday, Nissan Chief Executive Hiroto Saikawa, said both men had been arrested and this Thursday he would propose to the Nissan Board of Directors to remove them from their roles.
Ghosn is also chairman and CEO of the strategic alliance between French automaker Renault, Nissan and Mitsubishi Motors .
Mitsubishi Motors shares were down 6.58 percent.
The broader Japanese market fell Tuesday morning, with the benchmark Nikkei 225 down 0.
