Friday , May 20 2022

The shares of Renault and Nissan fell sharply after the shock of the president of the company


Nissan's action slumped nearly six percent Tuesday after Carlos Ghosn, president of the company around the world.

Nissan announced on Monday that it is conducting an investigation based on information provided by an informer who discovered that Ghosn used the money for a personal company and that he had underestimated reported earnings for years. Ghosn was arrested and fired by Nissan's board this week.

Ghosn is also President and Chief Executive Officer of Renault and the President of Mitsubishi Motors.

The deviation of the Ghost raises questions about the future of the alliance that he personally built, and dedicated himself to consolidating through close ties before he withdraws from the operational leadership.

This case sets the focus and future of Nissan, the largest partner of the alliance, in the period of profit reduction of the Japanese company, due to poor sales in the US and more competition from rivals investing in automobile automobiles and autonomous vehicles.

The illegality accusing Gosn also raises questions about the management of an alliance in which the governing boards of three partner companies are chaired by one man.

The director at Nisan's headquarters said he was concerned that the decision-making process of the Alliance, which compete with Volkswagen and Toyota Motors as the world's largest carmaker, could slow down without a single figure.

The director is also concerned that Ghosn's departure could affect sales if charismatic leaders leave the company, while corporate customers who must comply with the alignment rules suspend orders for scandals.

Nissan's CEO, Hiroto Saikava, told a news conference late last Monday that Ghosn had gained too much strength and that the implications of Renault and Nissan had not been confirmed since 2005.

Japanese prosecutors said in a statement that Ghosn and Greg Kelli's director were co-operating to underestimate Ghosn's fee for the five-year period from fiscal year 2010, half the real amount of 9.998 billion yen, $ 9 million.

Ghosn joined Nissan in 1991 and became CEO in 2001. He remained in the post of general manager until 2017 and received 9.2 million euros ($ 10.53 million) for the previous year in which he held this post.

"Underestimating his salary, he has deprived Nissan's shareholder of assessing whether his salary is adequate," said Toru Ibaiashi, General Manager of wealth management at UBS Securities Japan.

Chief executive Saikava, chief of Nissan in 2011, said that Nissan was the victim of Ghosn's illegality, but declined to say whether other directors were involved, next to Kellia.

Japan's public television NHK reported that Nissan paid billions of yen for buying and renovating Ghosn houses in Rio de Janeiro, Beirut, Paris and Amsterdam, according to reports.

According to him, the property had no business purpose and was not included in the benefits in the statements in the Tokyo Stock Exchange. Saikawa refused to explain how Ghosn used the company's money.

Nissan has spent two billion yen for Ghosn in Rio and Beirut over its Dutch subsidiary, Kelly's transaction being under investigation, Nikkei said, citing sources.

Ghosn and Kelly did not comment on charges and could not contact for comments.

Executive Vice President Nissana, Hitoshi Kawaguchi, in charge of government relations, met with a Japanese government spokesman on Tuesday and told the media that he was looking for good relations between Japan and France.

Asahi's statement announced, citing sources, that Kavaguchi offered prosecutors information about Ghosn in exchange for a clearer treatment by the prosecutor. Kawaguchi is the second person in Japan to benefit from the law passed in June.

Nissan's stock fell to the lowest level in the last two years, 940 yen per unit, before dropping by 5.5 percent to 950 yen per unit. The record volume of 140 million shares of Nissan traded on Tuesday, making up nearly 6 percent of all stocks listed on the Tokyo Stock Exchange's main platform.

Mitsubishi's shares, announced on Monday that they will remove Ghosn from the post of president, closed on Tuesday almost 7%. Renault's shares fell 8.4% on Monday.

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