Nissan Motor Co. and Subsidiaries to Face Hard Testing After the Sudden Arrest of Chair

On Monday, November 19th, Nissan’s chief executive, Hiroto Saikawa, confirmed that the chair of Nissan Motor’s, Carlos Ghosn, was arrested and that he is to be dismissed. The allegations reveal that Ghosn failed to submit an accurate representation of his income, and misused company funds. Ghosn was also questioned after his arrival to Yokohama that same day.

The news and development continue to be a shock that is going to prove to be a daunting test for the Nissan-Renault-Mitsubishi alliance; one of the world’s largest automakers.

Nissan Motor Co. is based out of Yokohama, Japan, and the alleged violations are said to involve millions of dollars. Another executive, Greg Kelly, is also engaged in the violation and is supposed to be the “mastermind” behind the act. The investigation took over a month and was instigated by a whistleblower.

Chief executive, Hiroto Saikawa, has stated that beyond being sorry, the company feels an astonishing amount of disappointment, anger, frustration, resentment, and despair. The apology that he offered to the media during the public conference lasted for an extended seven minutes. He also stated that he wants to personally minimize any impact on the operation, their business partners, and all bewilderment.

Nissan Motor Co. is providing all information requested by prosecutors and cooperating fully with their investigation.

During the conference, Saikawa said that the Nissan Motor Co. board is voting on Thursday whether both Ghosn and Kelly are to be dismissed. He went on to ensure media and the public that what happened is an act that Nissan cannot tolerate and that it is serious misconduct that needs to get handled immediately and appropriately.

According to the chief executor, there were three crucial types of misconduct found in the investigation. They include the use of investment funds for individual and personal gain, under-reporting of income, and the illicit use of company expenses.

When asked why Nissan had failed to spot the wrongful activity for so long, he was honest and respectful with his answer. Saikawa stated that it was because a “system within the company” allowed a lack of transparency that made them capable of wrongdoings.

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Nissan Motor Co. and Subsidiaries to Face Hard Testing After the Sudden Arrest of Chair

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