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Carlos Ghosn, who was arrested on allegations of underreporting his income three days earlier, has been removed as the company’s Chairman by Nissan’s board of directors unanimous vote. He is accused of underreporting his income to government regulators over a period of several years.
Greg Kelly along with Mr. Ghosn, who was once the human resources manager at Nissan and currently sat as a member of the company’s board, was also removed as a representative director.
The board while emphasizing on their partnership with Renault said: “that the longstanding Alliance partnership with Renault remains unchanged and that the mission is to minimize the potential impact and confusion on the day-to-day cooperation.”
Nissan in a separate statement stated that the misconduct committed by Mr. Ghosn was uncovered which included underreporting his compensation and using company funds for personal expenses. The statement also read that Greg Kelly “has been determined to be the mastermind of this matter, together with Carlos Ghosn.”
This controversy has caught the attention of the entire automobile industry. Mr. Ghosn has been regarded as the architect of the Renault-Nissan-Mitsubishi alliance and many believes he is the reason behind the alliance’s the growth and expansion to become the largest carmaker in the world.
