Nissan Motor Co.'s high-flying chairman Carlos Ghosn is to be dismissed after the company said an internal investigation found he under-reported his income by millions of dollars and engaged in other "significant misconduct".
Carlos Ghosn, the powerful head of Renault, Nissan and Mitsubishi, faces arrest in Japan after being accused of tax evasion and misconduct. Nissan is set to a hold a media conference in Tokyo this evening.
In a statement, Nissan said, "The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn's compensation".
Nissan has confirmed that they're performing an internal investigation that involves both Ghosn and Kelly for many years based on a whistleblower report.
Mr Ghosn, a foreign top executive in Japan, has been credited in the past as having turned Nissan around from near bankruptcy.
Japanese vehicle giant Nissan has proposed removing chairman Carlos Ghosn from his post over financial misconduct claims.
Shares of the carmaker fell as much as 6.2 percent in Paris, while Nissan global depositary receipts sank more than 11 percent. Ghosn went voluntarily with prosecutors, the Asahi newspaper reported earlier.
The firm said it had been providing information to the Japanese Public Prosecutors Office and would continue to do so. "We will continue our work to identify our governance and compliance issues, and to take appropriate measures", it said. Ghosn remained in that post till past year. In 2016, Ghosn became Mitsubishi Motors' chairman.
In June, Renault shareholders approved Ghosn's 7.4 million euro ($8.45 million) compensation for 2017.
A spokesman for Renault declined to comment. Before joining Renault, Ghosn worked for Michelin North America.
Ghosn has been contemplating his career moves as the companies plan to change the pact's structure, possibly through a merger. Of all these companies, Nissan is already seeking the removal of Ghosn from his post.
The carmakers have given themselves two years to decide on a possible merger between them or find an alternative mechanism to enhance their partnership, Bloomberg News reported in July.
An ouster of Ghosn, 64, is bound to raise questions about the future of the alliance that he personally shaped and had pledged to consolidate with a deeper tie-up, before eventually stepping back from its operational leadership.