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Chaos from Ghosn's fall ripples beyond Renault-Nissan alliance

Nov 24, 2018 (Nikkei) - The removal of Carlos Ghosn as chairman of Nissan Motor reveals deep tensions inside the Japanese automaker's alliance with Renault and Mitsubishi Motors, as the partners struggle to chart a future without the charismatic leader who held them all together.

The alliance's future hinges on finding a successor who possesses the leadership chops to navigate the trio's sometimes conflicting interests while ensuring continued growth amid paradigm shifts like autonomous cars and electric vehicles.

Nissan's board on Thursday voted to remove Ghosn, who remains held by prosecutors for investigation over allegations of understating his pay in the automaker's financial statements. Ghosn remains Renault's chairman and CEO, at least for now. And as head of Renault, Ghosn had commanded control over the alliance.

Renault apparently wanted to name Ghosn's replacement at Nissan. But the Japanese company sent a letter to Renault before Thursday's board meeting saying such a move would not be permitted, since Ghosn remains a director and the French automaker therefore is not entitled to more representation on Nissan's board, The Wall Street Journal reported.

Nissan initially considered appointing CEO Hiroto Saikawa as interim chairman, but put off the decision Thursday. The company's three outside directors will pick a candidate to succeed Ghosn from the board by December, though it is unlikely that someone from Renault will be chosen.

The three automakers collectively sell more than 10 million vehicles yearly, making their grouping one of the largest globally. But cracks in their alliance are showing elsewhere as well.

The three partners have called off a strategy meeting set for Monday in the Chinese city of Wuhan. Ghosn, Saikawa and other executives were expected to attend. Nissan holds the largest share of any Japanese automaker in China, the world's largest auto market where 28.87 million new vehicles were sold in 2017. But with China's market expected to contract in 2018 for the first time in 28 years, management saw a need for countermeasures.

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The Japan Meteorological Agency (JMA) announced that an El Niño phenomenon is believed to have developed this spring, warning that Japan is likely to experience above-average temperatures nationwide this summer despite the climate pattern's traditional association with cooler summers.

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A fire broke out at Arima Inari Shrine near the Arima Onsen hot spring resort area in Kobe on the night of June 9th, destroying multiple buildings and leaving an elderly Shinto priest and his wife with minor injuries.

Two men, including the head of the Japan Cycling Association, have been arrested by the Metropolitan Police Department on suspicion of defrauding two men in Kagoshima Prefecture out of 30 million yen by falsely promising a massive return on a purported patent-related investment.

A bear that had been repeatedly spotted in commercial and residential areas of Utsunomiya, Tochigi Prefecture, was captured in a residential neighborhood at around 3:30 p.m. on June 9th after authorities used a tranquilizer gun, but the city remains on alert because police say they cannot rule out the possibility that another bear may still be roaming the area.

Nara Prefectural Police have arrested seven people, including a 46-year-old Yokohama man who described himself as a "messenger of God," on suspicion of unlawfully confining a teenage boy entrusted to their care by his parents, allegedly threatening him, confiscating his belongings, and forcing him to sleep naked.

A man believed to be in his 50s or 60s was found dead with knives lodged in his left eye and abdomen inside a container at a company property in Kobe's Suma Ward on June 8th, prompting police to investigate the possibility of a criminal case.

The family of James "Weston" Higginbotham, a 20-year-old Auburn University student who disappeared during a family vacation in Japan, announced on June 7th that he has been found dead after a volunteer search-and-rescue team located his body in a mountainous area outside Kyoto, bringing a week-long multinational search to a tragic end.

A clinic director and a former Peruvian staff member have been referred to prosecutors after the man allegedly performed medical procedures without a license, including an external cephalic version—a procedure used to manually turn a baby into the correct position before birth—at an obstetrics and gynecology clinic in Fukuoka City, raising concerns about patient safety and oversight in maternity care.

A 14-year-old junior high school girl was arrested on suspicion of robbery resulting in injury after allegedly spraying a woman in her 60s in the face and stealing her wallet during a robbery attempt in Kasukabe, Saitama Prefecture.