Mitsubishi Motors fires Ghosn; CEO to be interim chairman

Nov 27, 2018 | News On Japan

Nov 27, 2018 (Japan Today) - The board of Japanese automaker Mitsubishi Motors, which is allied with Renault and Nissan, voted unanimously Monday to dismiss Carlos Ghosn as its chairman following his arrest last week.

Prosecutors arrested Ghosn on Nov 19 on suspicion he under-reported his income by $44 million over five years. Nissan Motor Co ousted him as its chairman last week, saying an internal investigation prompted by a whistleblower also found Ghosn misused company money and assets.

Mitsubishi Motors' CEO Osamu Masuko, chosen by the board as acting chairman pending a shareholders' meeting, said Ghosn would not be able to perform his duties, considering his arrest and Nissan's dismissal of him as chairman.

Renault has kept Ghosn as chief executive, while appointing an interim chair while the company awaits more information about the allegations against him.

The disruptions over Ghosn's case have added to worries about the future of the alliance between Renault, Nissan and Mitsubishi, whose status as the most recent addition could be more precarious.

European media have speculated that the case against Ghosn was partly driven by a desire to fend off moves to merge Renault and Nissan and keep the company under Japanese control. Resentment within the Japanese automaker against Ghosn's pay and power may also have played a role.

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