Carlos Ghosn has been sacked as chairman of Mitsubishi Motors, just four days after he was removed as chairman of Alliance partner Nissan.
Mitsubishi, part of an industry alliance created by Ghosn that also includes Renault, held an extraordinary meeting yesterday (November 26) at which eight members of its board decided to oust the under-fire automotive sector figurehead.
The move came four days after Thursday’s Nissan board meeting at which he was removed as chairman of the Japanese car brand amid allegations that he understated his income and used company money for personal use.
Ghosn’s change of fortunes begun on November 19, when reports of his arrest by Japanese authorities in Tokyo began to emerge.
In an official statement, Nissan later confirmed that he and Nissan representative director Greg Kelly had been subject of the investigation carried out by the Japanese manufacturer which, it said, had resulted from “a whistleblower report”.
Nissan said: “The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation.
“Also, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed.
“Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation. We will continue to do so.”
The Guardian newspaper reported this week that Ghosn’s alleged offences could carry a possible 10-year prison sentence.
In a statement issued following Ghosn’s removal as its chairman, Mitsubishi said: “Ghosn has lost the confidence of Nissan.”
Mitsubishi chief executive, Osamu Masuko, will now become acting chair.
On Tuesday of last week (November 20) Renault’s board of directors handed Carlos Ghosn's leadership powers to chief operating officer Thierry Bolloré and requested that Alliance partner Nissan discloses “all information” related to financial misconduct investigation.
A statement from the board said that it was unable to comment on the “evidence seemingly gathered against Mr Ghosn by Nissan” and the Japanese judicial proceedings.
This week Nissan vowed to retain its ties to Renault. However, reports in Japan have claimed that concerns had been expressed over Ghosn’s plans to turn the alliance into a full-blown merger.
Executives from all three businesses will meet in Amsterdam later this week.