Mitsubishi Motors is also moving to oust embattled Chairman Carlos Ghosn in the wake of his alleged financial misconduct.
Ghosn, one of the most prominent figures in the global automotive industry, is Chairman and CEO of the Alliance between Renault, Nissan and Mitsubishi Motors. He is also Chairman and CEO of Renault, Chairman of Nissan and Mitsubishi Motors. He was arrested yesterday in Tokyo on charges of falsified filings of annual securities report to the Tokyo Stock Exchange.
Nissan CEO Hiroto Saikawa led a late evening press conference at their global headquarters in Yokohama City and announced that the company is seeking to remove Ghosn.
An internal investigation by Nissan led to the discovery that Ghosn has allegedly committed two other acts of financial misconduct in addition to the misdeclaration. He was also found to have allegedly misused company investments, and using company assets for personal purposes.
Mitsubishi Motors revealed that they will also conduct an internal investigation as to whether Ghosn may have also engaged in a similar form of misconduct as well.
Ghosn pioneered an unlikely strategic alliance between Renault and Nissan in the late 1990s which led to one of the most successful automotive partnerships. It also resulted in the acquisition of Mitsubishi Motors by Nissan in late 2016. The Renault-Nissan-Mitsubishi Alliance officially became the world's largest automaker after outselling VW Group and Toyota in 2017 with 10,608,366 vehicles sold.
The full statement from Mitsubishi Motors:
"Mitsubishi Motors Corporation (MMC) today announces that media outlets reported that MMC's Chairman of the Board and Representative Director, Carlos Ghosn, had been arrested by Tokyo District Public Prosecutors Office on the charge of filing annual securities reports containing fake statement, in breach of the Financial Instruments and Exchange Act.
In response to the arrest of Ghosn, and since the alleged misconduct is related to a corporate governance and compliance issue, it is to be proposed to the Board of Directors to promptly remove Ghosn from his position as MMC's Chairman of the Board and Representative Director.
We will readily conduct an internal investigation on whether Ghosn has been engaged in the misconduct like the above within MMC."
"MMC deeply apologizes for any concern caused by the recent event."