Arrest of Ghosn Seen Affecting Global Strategy of Renault-Nissan
Newsfrom JapanSociety Economy
Tokyo, Nov. 19 (Jiji Press)--The arrest of Carlos Ghosn, chairman of Japan's Nissan Motor Co. <7201>, is expected to strike a blow to the global business strategy of the three-way alliance of Nissan, French auto giant Renault SA and Mitsubishi Motors Corp. <7211> of Japan.
The latest development may also affect the issue of a possible business integration of Renault and Nissan, industry sources said.
The special investigation team of the Tokyo District Public Prosecutors Office arrested Ghosn on Monday for allegedly violating Japan's Financial Instruments and Exchange Act by underreporting his executive pay by about 5 billion yen in the five years to March 2015.
Nissan, which ran into financial difficulties in the late 1990s following the collapse of Japan's bubble economy, formed a capital alliance with Renault. Ghosn, who hails from Renault, became Nissan's chief operating officer in 1999 and president in 2000. He later became its chairman.
Under the Nissan Revival Plan, the Japanese automaker led by Ghosn conducted thorough restructuring measures, such as plant closures, job reductions and deep cuts in materials procurement costs. As a result, Nissan substantially slashed its costs and interest-bearing debts, achieving a marked business turnaround.
[Copyright The Jiji Press, Ltd.]