Why Is Nissan Ceo Wanted?

PARIS — Carlos Ghosn, the former CEO of Nissan and Renault who is currently living as a runaway from the Japanese legal system, was given an international arrest order by French prosecutors on Friday as part of an investigation into alleged misappropriation of corporate assets and money laundering.

Fugitive Nissan-Mitsubishi has ordered Carlos Ghosn to pay back $6 million to them.

Former Nissan chairman Carlos Ghosn, one of Japan’s most wanted fugitives, was ordered by a Dutch court to pay back $6.1 million to a Dutch joint venture established by Nissan and Mitsubishi, thereby rejecting his demand for a $18 million to make up for what he claims was an illegal dismissal.

Before investigators boarded his private flight and detained him in Tokyo in November 2018 on suspicion of financial fraud, Ghosn oversaw the Renault-Nissan Alliance for over 20 years. With Ghosn as its charismatic leader, the alliance, to which Mitsubishi also belonged, was once the second-largest automaker in the world by volume.

Ghosn eluded the nation’s authorities in late December 2019 to fly from Japan to Lebanon on a private jet, purportedly hidden in a music case, in an escape story fit for a Hollywood blockbuster. Ghosn had been released on bail after nearly a year in custody when he evaded capture and left the country.

The Dutch court ruled that because there was no employment contract between Ghosn and the business, he was not entitled to fair remuneration, transitional compensation, or arrears.

Ghosn has petitioned an Amsterdam court to reverse his dismissal following his initial detention by a Dutch business that was a part of the alliance. Ghosn claims that Nissan-Mitsubishi BV fired him improperly and that he is owed $18 million in damages for missed earnings and severance benefits. However, the court determined that Ghosn’s agreement with the joint venture was invalid, and it ordered him to pay back the equivalent of $6.1 million. Ghosn plans to appeal the decision, according to a spokeswoman, so he can present his case.

The defense team will now appeal the case to the court of appeal where Mr. Ghosn’s right to give testimony will be upheld because today’s decision was made without hearing from him and other witnesses, the spokesman said. “We are pleased with the court decision which excluded any ill faith from Mr. Ghosn,” the statement reads.

José Ghosn

Carlos Ghosn is a Lebanese businessman who was born in Brazil (/goUn/; French: [kaRlos gon]; Arabic: krlws GSn; Lebanese Arabic pronunciation: [‘ka:rlos ‘gos?n], born 9 March 1954). Ghosn is also a citizen of France. He is an internationally sought-after fugitive as of January 2020. Ghosn served as the CEO of Michelin North America as well as the chairman and CEO of Renault, AvtoVAZ, Nissan, and Mitsubishi Motors. In addition, Ghosn served as the chairman and CEO of the Renault-Nissan-Mitsubishi Alliance, an alliance formed by these three automakers through a complicated cross-shareholding contract. Since 2010, the partnership has held a 10% share of the global market, and as of 2017, it was thought to be the biggest vehicle group globally.

Ghosn was appointed as Louis Schweitzer’s deputy at Renault in 1996 and given the responsibility of rescuing the firm from the brink of bankruptcy. Ghosn developed a cost-cutting strategy for the years 1998 to 2000 that included a personnel reduction, changes to the production process, standardization of car parts, and a push for the introduction of new models. Major organizational changes were also made by the company, including the introduction of a lean production system with delegated responsibilities (the “Renault Production Way”), a reform of work practices, and the centralization of research and development at its Technocentre to lower the costs of vehicle conception while accelerating such conception. Ghosn earned the moniker “Le Cost Killer.” He gained the moniker “Mr. Fix It” in the early 2000s for planning one of the auto industry’s most aggressive downsizing initiatives and leading Nissan out of its financial crisis in 1999.

After Nissan’s financial turnaround, he was named Asia Businessman of the Year by Fortune in 2002. He was named one of the top ten business leaders outside of the United States by Fortune in 2003, and the Asian version of Fortune named him Man of the Year. He was ranked third most recognized business leader in 2004, and fourth most respected in 2003, according to surveys conducted by PricewaterhouseCoopers and the Financial Times. His life has been depicted in Japanese comic books, and he swiftly rose to fame in Japan and the corporate world.

On April 1, 2017, Ghosn resigned as CEO of Nissan, but he remained the company’s chairman. On November 19, 2018, he was detained at Tokyo International Airport on suspicion of underreporting his pay and flagrantly misusing business resources. Nissan’s board unanimously decided to remove Ghosn as chairman of the company on November 22, 2018, with immediate effect. On November 26, 2018, the executive board of Mitsubishi Motors made a similar decision. At first, Renault and the French government stood by him and assumed he was innocent until proven guilty. Ghosn was forced to step down as chairman and CEO of Renault on January 24, 2019, when they ultimately decided that the situation was intolerable. Ghosn was re-arrested in Tokyo on April 4, 2019, while he was still free on bail that had been granted in early March, on fresh charges of stealing money from Nissan. Nissan shareholders decided to remove Ghosn from the board of directors on April 8th. On April 25, he was once more given a bail release. Renault discovered 11 million euros in dubious expenditures by him in June, which prompted a French probe and raids.

On December 30, 2019, Ghosn violated the terms of his release by taking a private jet from Japan to Lebanon through Turkey, with the assistance of an American private security contractor who was concealed inside a musical instrument box. Interpol sent a red alert to Lebanon on January 2, 2020, requesting the arrest of Ghosn. Since his escape, he has been the topic of numerous interviews with the media, books, a European TV series, and a BBC documentary called Storyville.

Why the hell is Carlos Ghosn having this situation?

He was a hero in the corporate world and in control of Nissan, Renault, and Mitsubishi. He is currently wanted on a global level. This is how it all happened.

Carlos Ghosn resigned from his position as CEO of Nissan in the spring of 2017, but since then, he has continued to make headlines due to a weird array of legal issues that now include multiple countries. He is currently at the center of a scandal that resulted in his arrest, termination as CEO, and subsequent position as an international fugitive following an alleged escape that seems like it belongs in a movie. He was accused of financial malfeasance while serving as Nissan’s chairman and CEO.

Let’s take a look back at the main moments in the developing story of Carlos Ghosn to explain how all of this came to be.

Former Nissan executive Carlos Ghosn claims he wants a trial.

In order to clear his name, fugitive former Nissan CEO Carlos Ghosn has declared he wants to go on trial for financial malfeasance.

After France issued a global arrest warrant for him due to allegedly suspicious payments, he spoke to the BBC.

Even though he was “surprised at the moment,” Mr. Ghosn claimed he was “expecting” the action.

The former CEO of Nissan, who was once among the most influential people in the auto business, is today barred from leaving Lebanon because Japan has issued an Interpol Red Notice for him.

The Red Notice, which currently prevents him from leaving Lebanon, can only be removed by going to trial, he told the BBC.

He stated that he was “absolutely convinced” he could prove his innocence and that he wanted a trial in Lebanon on the allegations leveled against him in Japan and any that may arise from the French probe.

French prosecutors are looking into allegations that Mr. Ghosn used Suhail Bahwan Automobiles to smuggle millions of euros from Renault.

He utilized the money for personal purposes, including the purchase of a 120-foot boat, according to reports that were initially printed in the Wall Street Journal.

A French investigating magistrate has now issued five international arrest orders for Mr. Ghosn and four individuals connected to an Omani auto distributor.

“There was not a single penny [from Nissan or Renault] that ended up benefiting me directly or indirectly,” Mr. Ghosn said to the BBC on Friday.

He reiterated his assertions that he had left Japan because he would not have received a fair trial there and denied that he was a wanted man.

According to Mr. Ghosn, the accusations against him are a part of a plot to thwart his aspirations for a complete merger of Nissan and Renault.

Since making his getaway, Carlos Ghosn has insisted repeatedly that the accusations made against him in Japan are unfounded.

He claims that they were complicit in a plot to stop him from bringing together Nissan and its French partner Renault.

However, a second probe has been quietly ongoing in France for some time. Recently, Mr. Ghosn was in-depth questioned by an investigative magistrate in Beirut.

The French side appears to believe there is at least a legitimate case to answer given their determination to obtain an international arrest order.

Mr. Ghosn has stated that he would be willing to go to France for a trial in order to clean his name, and his attorneys appear certain that will occur. However, there is an issue.

The former executive is prohibited from leaving Lebanon since he is still the subject of a Japanese extradition request, even though it is extremely improbable that the request will be granted.

One of the largest auto manufacturing conglomerates in the world, the Renault-Nissan-Mitsubishi Alliance, was previously led by Mr. Ghosn.

In late 2018, he was detained in Japan and charged with a number of offenses, including allegedly purposefully underreporting his income and using business funds to support his own lifestyle. He denied doing anything wrong.

He has already discussed his daring escape from Japan, which required dressing up to blend in while walking through Tokyo’s streets, hiding in a big music equipment box, and running away to his native Lebanon while awaiting trial.

Mr. Ghosn, who is in possession of French, Brazilian, and Lebanese passports, cannot be extradited from Beirut to France, despite the fact that he told the BBC he had been questioned as part of the inquiry.

Ghosn stated that he is attempting to get Interpol to remove its red flag, which asks law enforcement agencies around the world to locate and detain anyone sought for prosecution or sentence serving. Although he is ready to leave Lebanon, the process is likely to be cumbersome and drawn out.

“I’ll be there, I promise. As long as I have the strength, I’ll fight for my rights “Ghosn, 67, spoke over Zoom from his Beirut home. He declared that his tale is “far from finished.”

Ghosn stated that he is attempting to get Interpol to remove its red flag, which asks law enforcement agencies around the world to locate and detain anyone sought for prosecution or sentence serving. Although he is ready to leave Lebanon, the process is likely to be cumbersome and drawn out.

According to Aaron Ho, an analyst at CFRA Research in New York, Nissan has lagged behind in a very competitive sector as a result of the Ghosn controversy.

“We are not optimistic,” he continued, “unless Nissan addresses its internal conflicts over corporate authority and puts its resources back into producing concrete progress — which takes a long time, and a long time has been wasted — to generate values for its end demand.”

Nissan officials did seek out prosecutors, according to testimony at the trial of Greg Kelly, a former top executive at Nissan Motor Co. who was detained concurrently with Ghosn.

By neglecting to record that salary, which was never paid and wasn’t even legally agreed upon, according to the prosecution, Ghosn violated the law. Kelly claims to be innocent and that he was looking for legitimate ways to compensate Ghosn to keep him on board.

Ironically, Ghosn claims that the money he is accused of failing to report was premised on him retiring in 2018, the year he was detained.

Ghosn appears far from inactive. He is engaged in film production, management education, business consultancy, and “character assassination” research at a university.

“Look. Several books, many books “When asked what else he had been working on, he responded.

He still drives a Nissan Patrol sport-utility vehicle, a model that is well-liked throughout the Middle East. He also maintains that he was unable to predict the danger that was coming his way.