Nissan and Renault's stock prices plummeted as the automakers prepare to oust arrested chairman Carlos Ghosn. The Brazil-born executive was detained in Tokyo on accusations of financial misconduct.
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Shares in Nissan Motor Co. dipped 5.5 percent in Tokyo and Renault's fell 8 percent in Paris on Tuesday, a day after high-flying chairman Carlos Ghosn was arrested on suspicion of falsifying financial reports and other misconduct.
The 64-year-old Ghosn was arrested on Monday in Tokyo and is being held as prosecutors conduct an investigation into allegations that he underreported his income by around 5 billion yen ($44.5 million, €38.8 million) over five years.
Nissan and Mitsubishi, two parts of the Nissan-Mitsubishi-Renault alliance Ghosn led, have announced their intention to remove him as chairman.
Scandal-ridden bosses — how the mighty keep falling
After Nissan boss Carlos Ghosn was accused of underreporting his income for years to financial authorities, DW looks at other top executives — often saviors of big companies — who ended up in the firing line.
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Nissan boss Ghosn's affairs scrutinized
Nissan Motor chairman Carlos Ghosn was arrested in November 2018 and subsequently charged with falsifying financial reports and breach of trust. He led a remarkable turnaround at the Japanese automaker, rescuing it from bankruptcy. An investigation continues into whether he under-reported his salary by 5 billion yen (€39 million $44.5 million) over five years from 2011.
Image: picture-alliance/AP Photo/T. Chea
VW boss takes the rap for Dieselgate
Ex-Volkswagen CEO Martin Winterkorn resigned in 2015 in the midst of the Dieselgate scandal. The automaker was found to have lowered the emissions of its diesel-engine cars during environmental tests. VW set aside €27 billion to pay fines, buybacks and compensation Winterkorn has been charged in the US with fraud and conspiracy, but Germany does not allow the extradition of its nationals.
Image: picture alliance/dpa/U. Zucchi
Corruption shame blighted Siemens CEO
In 2007, Siemens chairman Heinrich von Pierer stepped down following a corruption scandal during his time as CEO. During the investigation it emerged that Siemens had created a system of slush funds and fictitious consultancy contracts, while also paying huge bribes, totaling at least €1.3 billion euros to win foreign contracts. Pierer later agreed to pay €5 million in damages to the firm.
Image: picture-alliance/dpa/F. Mächler
Weinstein's notorious casting couch
Once-powerful movie titan, Harvey Weinstein, has been accused by dozens of women of sexual misconduct ranging from harassment to rape. He is out on bail and has pleaded not guilty in New York to six counts reportedly committed against three women. The accusations against him spurred the #MeToo movement, where women worldwide have spoken up against sexual harassment and assault.
Image: picture-alliance/AP/S. Hirsch
Advertising guru accused of misconduct
Sir Martin Sorrell, the founder of the global advertising powerhouse WPP, stepped down in April after 33 years. He denied accusations of personal misconduct and misuse of company assets. The Wall Street Journal alleged Sorrell had paid a sex worker on company expenses, which he responded were “scurrilous and salacious" claims.
Image: picture-alliance/AP Photo/M. Lennihan
Startup bad boy leaves under a cloud
Uber CEO Travis Kalanick resigned from his position in July 2017 after heavy pressure from several major investors in the San Francisco-based ride-hailing company. Concerns were raised about Kalanick's management style, including allegations of sexual harassment and discrimination. Under his watch, the firm's ruthless reputation has also been criticized by regulators. Author: Nik Martin
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Unfit to lead Renault
France's finance minister Bruno Le Maire said on Tuesday that after his arrest, Ghosn was no longer fit to be at the helm of Renault.
"Carlos Ghosn is no longer in a position capable of leading Renault," Le Maire told France Info radio. He said France's priority was to ensure continuity and stable governance of the French car giant.
The French automaker announced it would be holding a board meeting later on Tuesday to discuss interim management while Ghosn is detained.
Japanese corporate governance
Toru Ibayashi, executive director of Wealth Management at UBS Securities Japan said for Nissan: "this incident will make investors review if Japanese corporate governance is working."
Ghosn: "basically deprived Nissan's shareholders of opportunities to judge if the amount of his salary was appropriate," Ibayashi said.
It is unclear how long Ghosn could be held in prison, or even when prosecutors would officially announce the charges against him.
Nissan's Carlos Ghosn arrested and under investigation
