According to the reports of NHK, on Thursday, the board of the Nissan Motor has voted to oust the CEO of the company, Carlos Ghosn from his post of the chairman of the company in the wake of his arrest this very week.
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 arrest of Ghosn took place in Tokyo, on Monday morning after the news that he had charged almost the double of the salary which he had reported.
The company made the announcement that Thierry Bollore will now become the Deputy CEO. He already handles several day to day activities of the company and will now possess the powers same as that of the CEO, Ghosn.
The removal marks the downfall of the executive who had once hailed as Japanese automaker’s savior.
His ousting has caste clouds on the future as well as the direction of the alliance which was personally shaped by him and he had pledged to consolidate despite all the reservations at the Nissan.
According to the reports of the Nikkei newspaper the board has also decided to remove the representative director Greg Kelly from his position.
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 debacle has questioned the future of Renault, which is the biggest car alliance of the world. Concerns have been expressed by the investors.
The company stated on Monday that an internal investigation which was triggered by an informant’s tip off had led to the revelation that the CEO, Ghosn was engaged in this wrongdoing.
Source: Reuter, NHK
