Carlos Ghosn
Mitsubishi Motors Corp said on Monday its board removed Carlos Ghosn from his role as chairman, following his arrest and ouster from alliance partner Nissan Motor Co last week for alleged financial misconduct.
Ghosn's sacking in a unanimous board vote marks the end of his chairmanship of Japanese automakers, just two years after he was praised for bringing a steadying hand to Mitsubishi Motors following a cheating scandal in 2016. CEO Osamu Masuko will become temporary chairman, the automaker said.
"Ghosn has lost the confidence of Nissan" and it is "difficult for him to fulfill his duties", spurring the dismissal, Mitsubishi Motors said in a statement. Nissan holds a controlling 34 percent stake in Mitsubishi Motors and has two executives on the board.
The move comes amid discontent over French partner Renault SA's role in the 19-year Franco-Japanese alliance of which Ghosn was the driving force.
Nissan Motor Co Chief Executive Hiroto Saikawa told employees on Monday that the Japanese automaker's relationship with French partner Renault SA was "not equal" and needed to be reviewed, Kyodo News reported, citing an unnamed source.At a town hall meeting broadcast to Nissan employees around the world on Monday morning, Saikawa apologised for the news last week that board member Carlos Ghosn had been arrested for alleged financial misconduct, a Nissan source told Reuters.The board of directors unanimously voted to oust Ghosn as chairman at a meeting last Thursday. 
Nissan CEO to workers: ties with Renault 'not equal', needs review
Sealed in 1999 when Nissan was rescued from near-bankruptcy, it was enlarged in 2016 to include Mitsubishi and enabled the members to jointly develop products and control costs. The alliance vies with Volkswagen AG and Toyota Motor Corp for the ranking of the world's biggest automaker.
Even as Nissan has recovered and grown rapidly, it remains a junior partner in the shareholding structure. Renault owns 43 percent of Nissan and the Japanese automaker holds a 15 percent non-voting stake in the French firm. And Nissan is almost 60 percent bigger than Renault by sales.
Top alliance executives are meeting this week in Amsterdam, aiming to shield their joint operations from the fallout of Ghosn's arrest as a power struggle between Nissan and Renault looms. Renault has refrained from firing him as chairman and CEO.
Former Nissan chairman Carlos Ghosn, arrested last Monday on suspicion of financial misdoing, has denied the allegations against him, Japanese public broadcaster NHK said on Sunday.Ghosn, who has not spoken publicly, has told investigators that he had no intention of under-reporting his remuneration on financial documents and has denied allegations against him, NHK said, without giving sources.Greg Kelly, a former Nissan executive arrested along with Ghosn on Monday, was quoted by NHK on Saturday as defending Ghosn's compensation, saying it was discussed with other officials and paid out appropriately.
Former Nissan chairman Carlos Ghosn denies allegations against him
Mitsubishi Motors already had plans to discuss its position in the alliance with Ghosn and, following the ouster, it needs to consider focusing on regions and technology where it can retain competitiveness, CEO Masuko told reporters after the board meeting.
Cooperation among alliance members is needed amid the rise of new technology like automated and internet-connected vehicles, he said.
Nissan CEO Hiroto Saikawa told staff on Monday that power was too concentrated with Ghosn and that in future better communication between alliance board members and executives would help preserve independence and generate synergies among the automakers, a Nissan spokesman said.
A former Nissan Motor (7201.T) executive arrested along with ex-chairman Carlos Ghosn has defended Ghosn’s compensation, saying it was discussed with other officials and paid out appropriately, Japanese public broadcaster NHK said on Saturday.In his first reported comments since his arrest on Monday, Greg Kelly was also quoted by NHK as saying that he had worked for the good of Nissan rather than just following Ghosn’s instructions.Japanese prosecutors say Ghosn and Kelly conspired to understate Ghosn’s remuneration by about half the 10 billion yen ($88 million) he earned at Nissan over five years from 2010. The company has also cited other, multiple infractions.“The former chairman’s compensation was discussed with those in the related department and carried out appropriately. I was not just following the former chairman’s orders, but working for the good of the company,” Kelly said, according to the report.Nissan’s board voted unanimously on Thursday to remove Ghosn and Kelly from their positions. Both were arrested after a Nissan investigation uncovered evidence of serious wrongdoing including under-reporting remuneration and personal use of company assets.
Arrested Nissan executive Kelly says Ghosn paid appropriately
Ghosn was pushing for a deeper tie-up, including potentially a full merger between Renault and Nissan at the French government's urging, despite strong reservations at the Japanese firm.
Nissan removed Ghosn at a high-stakes board meeting on Thursday after alleging he understated his income and used company money for personal use.
Ghosn has denied the allegations, public broadcaster NHK reported on Sunday.
Mitsubishi Motors is conducting its own probe into potential wrongdoing by Ghosn, and plans to announce the results at its December board meeting.
While the automakers have stressed that operations and business are proceeding as normal, Nissan has postponed the launch of its high-performance Leaf electric car "to ensure that this important product unveiling could receive the coverage it merits", a Nissan spokesman said.
Shares in Mitsubishi Motors closed up 3.3 percent ahead of the announcement while Nissan climbed 1.8 percent, outperforming the broader market's 0.8 percent gain.