PARIS: Renault said on Tuesday (Nov 20) Carlos Ghosn will remain its chief executive despite his arrest on financial misconduct charges in Japan, though a…
PARIS: Renault said on Tuesday (Nov 20) Carlos Ghosn will remain its chief executive despite his arrest on financial misconduct charges in Japan, though a deputy CEO has been named to ensure day-to-day management while he is “temporarily incapacitated.”
After an emergency board meeting prompted by Ghosn’s arrest on Monday on charges of under-reporting his pay at Nissan, Renault said chief operating officer Thierry Breton would become deputy CEO, with the “same powers” as Ghosn.
Saying it was unable to comment on the “evidence seemingly gathered” against Ghosn, the carmaker asked Nissan to share all information stemming from its internal inquiry against him.
French and Japanese officials are scrambling to reassure investors on the fate of the Nissan-Renault-Mitsubishi alliance as fresh claims emerged following Ghosn’s arrest.
Nissan has already signalled it will move to remove Ghosn as chairman, after alleging that an inquiry prompted by a whistleblower found “significant acts of misconduct,” including millions of dollars in undeclared pay.
Ghosn has not been heard from since his arrest, though sources confirmed he was being held by Tokyo prosecutors.
Ghosn is considered one of the world’s most powerful auto executives, the architect of a three-way alliance which combined sells more cars worldwide than any other automaker.
In a statement Tuesday, French Finance Minister Bruno Le Maire and his Japanese counterpart Hiroshige Seko reaffirmed their “strong support” for “one of the greatest symbols of Franco-Japanese industrial cooperation.”
But investors have been unloading shares in the three carmakers since the charges emerged against Ghosn, the alliance’s linchpin since 1999.
The companies have deeply integrated their operations to produce huge economies of scale, and Renault owns 43 per cent of Nissan while Nissan has a 15 per cent stake in its French partner.
