At the end of 2018, the head of the Renault-Nissan-Mitsubishi automobile alliance was arrested. The reason for the detention was inaccurate declaration of income and violation of other legal norms.
Carlos Ghosn is the head of a major automotive alliance
The Renault-Nissan-Mitsubishi Alliance is a major Franco-Japanese partnership in the development of mechanical engineering. It arose from the merger of Renault and Nissan into the Mitsubishi Motors alliance in 2016. Since the mid-90s of the last century, Renault and Nissan were run by Carlos Ghosn. He has been repeatedly called the most efficient and highly paid Japanese manager.
Carlos Ghosn took over the management of automobile concerns when they were in deep crisis. For several years, he managed to do the impossible - the companies began to bring profit to their shareholders again.
Carlos' salary has been criticized more than once, as has the manager himself. He was called a "cost killer" and was hated for the massive layoffs of workers. At the end of 2018, a major scandal erupted. Ghosn was accused of violating several articles of Japanese law.
The arrest of Carlos Ghosn
While working for the largest car companies, Carlos Ghosn gained almost unlimited power. Law enforcement agencies became interested in his income, after which it turned out that the top manager did not properly declare all the funds received from shareholders. Over the years, he actually received a higher salary compared to that which was carried out according to the documents. This allowed Carlos to evade taxes.
A criminal case was opened against another high-ranking employee of the company - a member of the board of directors Greg Kelly. According to preliminary data, these top managers were in a criminal conspiracy.
Carlos Ghosn worked not only in the Renault-Nissan-Mitsubishi alliance. He was invited to cooperate with other car companies. The manager also worked with ZAO Avto-VAZ. Receiving profits from foreign employers, Ghosn did not declare income, which is also prohibited by Japanese law.
Shareholders and senior management of Renault and Nissan accused Ghosn of abuse of trust and the use of corporate assets for personal gain. The press service made a statement about its readiness to cooperate with the investigation. Many believe that Carlos was the victim of an insidious conspiracy. They just wanted to remove him from the post of director, so some of the high-ranking employees made public the dirt on Ghosn.
What will happen to Carlos Ghosn
At present, an investigation is underway on the case of the head of the Renault-Nissan-Mitsubishi automobile alliance. Carlos Ghosn is arrested. Over the course of several months, he changed his testimony more than once. At first, the manager did not admit his guilt, then he confessed, and later again retracted his earlier testimony.
In January 2019, Ghosn ended his partnership with the automotive alliance, despite the fact that the contract was only due to expire in 2022. According to some reports, Carlos resigned from his post voluntarily. If his guilt is proven, the manager faces a long sentence.
Against the background of the scandal that broke out, the shares of Renault and Nissan depreciated by 6.5%. The alliance shareholders have already given several interviews, in which they did not even try to smooth out the conflict. The press service of "Renault-Nissan-Mitsubishi" made a statement that the blow to Ghosn's reputation should not affect the reputation of the car companies.
