Nissan chairman Ghosn arrested in Tokyo

Nissan chairman Ghosn arrested in Tokyo

The firm said that it has passed on the information gathered to the Japanese public prosecutor's office, and there are multiple media reports, including from Japanese public broadcaster NHK, that Ghosn has been arrested by authorities in the country. A representative for the Tokyo prosecutors' office said they don't comment on individual cases and a spokesman for Renault also declined to comment.

The news comes as a shock in Japan where Ghosn, a rare foreign top executive, is well regarded for having turned Nissan around from near bankruptcy.

Mr Ghosn joined Nissan in 1999 after Renault bought a controlling stake and became its CEO in 2001, remaining in that post until past year.

Following that report, Nissan global depository receipts fell more than 11 per cent in Japan, while shares in Renault have dropped by more than five per cent, reaching their lowest level in almost four years.

Nissan confirmed the subject of the investigation Monday and said it was cooperating with prosecutors.

Shares of Japan's fourth-largest vehicle manufacturer as well as France's Renault plunged following a report that Carlos Ghosn, chairman and chief executive of the Renault-Nissan-Mitsubishi alliance, will be arrested on alleged violations of financial trading law and the company board will consider his ouster, according to Japanese media.

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Under his almost two-decade tenure, Nissan moved away from conventional practices in the Japanese auto industry.

Mr Ghosn is chairman of the Renault-Nissan alliance as well as chief executive of Renault. Nissan's German-listed securities plunged 12 percent.

Japanese auto giant Nissan has proposed removing chairman Carlos Ghosn from his post over financial misconduct claims.

Shortly after the release of the reports, Nissan announced it was seeking the removal of Mr Ghosn over claims of "serious misconduct".

Ghosn, a Brazilian-born French citizen of Lebanese descent, began his career at Michelin in France, then moved on to Renault. He joined Nissan in 1999 after Renault bought a controlling stake and became its chief executive in 2001. Ghosn remained in that post until previous year. "We will continue to do so", said the company's statement.

Ousting 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. In addition to this, he received €9.2m in his final year as Nissan chief executive.

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