Tokyo, November 21, 2018 — Japan said it was ready to help preserve stability in the Nissan-Renault global alliance after the arrest of Carlos Ghosn, while a Japanese newspaper reported that prosecutors were considering whether to bring a case against Nissan Motor Co.
The government’s message came as Nissan tried to frame itself as the injured party in the widening scandal. The company has accused Ghosn, one of the best-known figures in the car industry, of years of misconduct, including the personal use of company funds and the under-reporting of earnings. Nissan said it planned to remove him from his post on Thursday.
Prosecutors arrested Ghosn on Monday, saying he and Representative Director Greg Kelly conspired to understate Ghosn’s compensation at Nissan over five years starting in fiscal 2010. Authorities said the reported amount was about half of the actual 10 billion yen ($88.65 million).
The Asahi newspaper, citing unnamed sources, said the alleged misstatement could also leave Nissan exposed. According to the report, prosecutors were examining whether the automaker itself bore responsibility and whether a case could be built against it. Prosecutors were not immediately available for comment, and Nissan declined to comment on the report.
Ghosn, who also served as chairman and chief executive of Renault and chairman of Mitsubishi Motors Corp, has been central to the three-way alliance. Kelly has also been arrested, and neither man had commented publicly on the allegations at the time of reporting.
Japan’s top government spokesman said the alliance “is a symbol of Franco-Japanese industrial success and we will continue to support it,” adding that the three automakers should maintain a “stable relationship.”
Separate reporting by Nikkei on Tuesday said Ghosn had received share price-linked compensation of about 4 billion yen over a five-year period to March 2015, but that it was not disclosed in Nissan’s financial reports. Renault responded on Tuesday by naming its chief operating officer and a senior board member to stand in for Ghosn, while stopping short of firing him as it awaited more details. That approach could allow the company to move faster toward a permanent succession plan.
Markets were mixed after the arrest. Nissan shares rose 0.8 percent on Wednesday after falling nearly 6 percent the previous day, while Mitsubishi Motors fell 0.6 percent after dropping nearly 7 percent on Tuesday.
