In Japan, the prosecutors allege that the CEO of the Renault-Nissan-Mitsubishi Alliance had earned about ¥10 billion between the years 2011 to 2015 which is equal to $88.7 million. But the CEO had reported only half of that as his income.
The CEO was arrested on Monday and is expected to face a punishment of 10 years on imprisonment or a ¥10 million fine or even both, for the wrong doings.
The stake of France in the Renault is of about 15 percent and now the maximum number of the French government has piled on.
On Monday, the President of France, Emmanuel Macron stated that the state being the stakeholder in the company will now be extremely vigilant to the stability exhibited by the alliance as well as the group.
The Finance Minister of France, Bruno Le Maire had told the France Info that he would be pushing the interlude government toward the carmaker.
Whereas the Renault has stated that the executives of the company would be meeting very soon in order to discuss the incident.
The debacle has questioned the future of Renault, which is the biggest car alliance of the world. Concerns have been expressed by the investors.
On Monday, the shares of Renault have reached a four year low and this raised the concerns of the investors.
On Tuesday, the company is down by 3.1 percent in Paris in trading and has fallen down for the second day.
Since 1999, Renault-Nissan-Mitsubishi had a partnership which was strategic. Ghosn was therefore the acting chairman of all the three companies which had formed the alliance as well as the CEO of Renault, the group.
The company was car-making powerhouse. The alliance was able to sell about 10.6 million cars in the year 2017 which was the maximum of any car maker in the world.
Source: BusinessInsider, ConsultantInsider
