Nissan chairman Carlos Ghosn arrested after internal probe finds he under-reported his income

Nissan Motor chairman Carlos Ghosn has been arrested over suspected financial violations, NHK reported on Monday, and the carmaker said it will seek to remove the industry icon as its chairman after an investigation into his alleged misconduct.

Ghosn, among the most prominent car industry leaders globally and also the chief executive of Renault, was detained over a suspected breach of Japanese financial law, Japan’s national broadcaster said. Based on a whistle-blower tip, Nissan has been doing an internal investigation over the past several months into suspected financial misconduct involving Ghosn and director Greg Kelly, the company said. Nissan seeks to remove both Ghosn and Kelly.

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The company will hold a board meeting on Thursday to fire Ghosn, Hiroto Saikawa, its chief executive, told a news conference on Monday. “On Thursday, I will call a board meeting to make a proposal to remove him from the position of chairmanship, and approve it,” said Saikawa.

The chief executive apologised profusely for the discovery that Ghosn allegedly engaged in serious financial misconduct. He said: “Beyond being sorry I feel great disappointment, frustration, despair, indignation and resentment.”

Speaking at Nissan’s headquarters in Yokohama, Saikawa said the company’s management will focus on minimising the impact of the shake-up on the company and its employees. He said Ghosn’s arrest shows power was too concentrated in one person and that Nissan plans to reduce its reliance on a single leading executive.