Carlos Ghosnas’s career might be followed upward for about 20 years. His successful alliance in 1999 between Renault, Nissan, and Mitsubishi earned him the position of driving Nissan in 2001. A
He successfully turned around the Japanese carmaker in only a year, and Nissan under his direction rose to become one of the most successful automakers in the world. But it turned out that his fearlessness was both a strength and a weakness.
According to Bloomberg, Ghosn was detained by Japanese police in November 2018 on accusations of defrauding Nissan of $140 million. He spent five months behind bars. A
When he finally obtained bail, one of the terms of his release was a travel restriction that required him to remain in Japan. Ghosn refused to abide by those conditions and instead hired two Americans to transport him out of the country in a box. When he arrived in Lebanon, he immediately went into hiding.
Three people were imprisoned for assisting the former CEO of Nissan in traveling from Japan to Lebanon, according to Carlos Ghosn
Ghosn, who is a citizen of France, Lebanon, and Brazil, is still at large and is still in Beirut.
ANKARA — In relation to their role in transporting former Nissan Motor Co. Ltd. Chairman Carlos Ghosn out of Japan during his escape to Lebanon little over a year ago, a Turkish court found an official of Turkish jet business MNG and two pilots guilty of smuggling migrants.
Despite the fact that they had already been held for several months, their attorney said they were not expecting to do any prison time until the court sentenced them to four years and two months in prison.
Charges against one flight attendant were dismissed, and two additional pilots and flight attendants were found not guilty.
Ghosn, who was once a shining star in the global auto industry, was detained in Japan in the latter part of 2018 and charged with underreporting his pay and using company cash for personal expenses; he has since denied the allegations.
When he fled to Beirut, his childhood home, in December 2019, the former head of the alliance of Renault, Nissan Motor Co., and Mitsubishi Motors Corp. had been under house arrest in Japan while awaiting trial.
Ghosn, a dual citizen of France, Lebanon, and Brazil, is still at large and is presently in Beirut, where he previously declared his intention to start a university business school. Japan and Lebanon do not share an extradition agreement.
Early in January 2020, Turkish authorities seized four pilots and an executive from Turkish private aircraft business MNG Jet, who had been accused of transporting migrants.
Erem Yucel, the attorney for one of the pilots found guilty, informed reporters that they would appeal the decision.
Pilot Noyan Pasin, who was convicted, said that neither employees nor officials in Turkey or Japan had seen any problems with the trip, therefore it was unfair to single out the pilots.
He told reporters, “We were condemned because we weren’t suspicious, even though we were expected to be suspicious.”
Fugitive from the Company: Carlos Ghosn
Carlos Ghosn was detained in Japan in 2018. He served as the CEO of Nissan in Japan and Renault in France, two automobile manufacturers. Executives at Nissan claimed that Ghosn had broken Japanese law by failing to report his profits while also receiving two salaries.
Ghosn makes his getaway prior to the start of his trial. He gets past security by hiding in a box of musical instruments and is taken on a private flight to Lebanon, which has no extradition agreement with Japan. We follow Carlos Ghosn’s remarkable ascent and fall in this episode and get statements from the wanted man.
The four-part HBR IdeaCast series “The Rise and Fall of Carlos Ghosn” can be listened to here. There is a lot more to this story, including race car driving executives, a boardroom takeover, and a spy scandal.
The reporting on this incident is taken from Hans Greimel and William Sposato’s latest book, “Collision Course: Carlos Ghosn and the Culture Wars That Upended an Auto Empire,” which was released by Harvard Business Review Press.
Carlos Ghosn, the CEO of Nissan, was detained on suspicion of “significant” financial malfeasance.
Carlos Ghosn, the chairman of Nissan and one of the most prominent executives in the auto industry, was detained in Japan after an internal probe uncovered “serious acts of misconduct” committed by him and another top executive over a long period of time.
The shocking news sent stocks of Nissan (NSANY) and Renault (RNSDF), where Ghosn also serves as chairman, plummeting, shattering a potent worldwide alliance.
One out of every nine automobiles sold worldwide is produced by Nissan, Renault, and Japan’s Mitsubishi Motors (MMTOF), which together make up the largest global automaking alliance. More than 470,000 individuals are employed by the three corporations in close to 200 nations.
Nissan said in a statement that it had been looking into Ghosn, a 40-year auto industry veteran, and another board member for months as a result of a tip.
At a press conference in Tokyo late on Monday, Nissan CEO Hiroto Saikawa stated, “These two individuals were arrested this evening, from what I gather.”
Ghosn, 64, and the other board member, Greg Kelly, were both detained on suspicion of making false statements in order to violate financial rules, according to Japanese authorities. The two men are accused of working together, according to the statement from the prosecution, to conceal Ghosn’s income for a five-year period ending in March 2015, to the tune of around 5 billion yen ($44 million).
Carlos Ghosn earlier this month visited a Renault factory in France. He is in charge of a partnership between the French manufacturer and Nissan and Mitsubishi Motors in Japan.
For submitting a fake financial statement, the maximum penalty in Japan is up to 10 years in prison and a fine of up to 10 million yen ($89,000).
Nissan claimed that its internal probe turned up “many more substantial acts of malfeasance,” including the use of corporate resources for personal gain.
At a meeting on Thursday, Nissan’s board of directors will be presented with a proposal by CEO Saikawa to “promptly dismiss Ghosn from his positions as chairman and representative director,” the firm stated. Additionally, he’ll try to get Kelly kicked from the board.
Why is Nissan’s CEO imprisoned?
Greg Kelly, a former assistant of ex-Nissan CEO Carlos Ghosn who is currently on trial for financial fraud, was asked by Japanese prosecutors on Wednesday to serve a two-year prison term.
The only individual to go on trial for allegations that Nissan attempted to conceal planned payments to the auto mogul is Kelly, while Ghosn is still at large in Lebanon after escaping Japan in an audio equipment box.
Prosecutors also asked for Nissan, who was on trial with Kelly as a company, to pay a fine of 200 million yen ($1.8 million) in a Tokyo court.
On October 27, the defense will present their closing remarks, and the decision may come several months later.
The 65-year-old American lawyer and former senior Nissan executive was accused by the prosecution of being a significant player in a scheme to conceal Ghosn’s income between 2010 and 2018.
Under Japanese law, annual securities reports that have been fabricated can result in a 10-year prison term.
Kelly, who is residing in Tokyo, is on bail and is not permitted to leave Japan while contesting the case. Kelly has constantly denied any wrongdoing.
When Ghosn and Kelly were detained in Tokyo in November 2018, the Nissan scandal broke out, garnering media attention and shocking the business community.
A number of financial misconduct charges were brought against Ghosn, including claims that he was to receive money after retirement that should have been disclosed but wasn’t.
Prosecutors claim Kelly promised his former boss money totaling 9.2 billion yen ($83 million at the current exchange rate) when he retired.
However, according to Kelly and Ghosn, no formal agreement was reached regarding any post-retirement compensation, hence no declaration was legally necessary.
In December 2019, Ghosn—a citizen of France, Lebanon, and Brazil—jumped bail and escaped to Lebanon, where he is still at large.
He claims he ran away because he feared he wouldn’t get a fair trial and that the accusations against him were made up by Nissan officials who didn’t like his plans to combine the company with its French partner Renault.
Ghosn’s arrest has had a significant impact, and Nissan’s CEO was fired after his own financial problems were discovered in a later investigation.
After being extradited from the United States, a father-son American team who assisted Ghosn in fleeing the country was given a two-year prison term by a Japanese court in July.
Michael Taylor, a former member of the US special forces, and his son Peter were found guilty of assisting in the smuggling of a box containing a disguised Ghosn onto a private plane.
In addition, four years and two months in prison were given to two pilots and one other employee of a tiny private airline in Turkey, where Ghosn changed planes before flying to Lebanon.
French authorities questioned Ghosn in Lebanon in May over a number of potential financial irregularities. However, he was just called as a witness and would have to travel to France to face formal charges.
Nissan is still being followed by the Ghosn scandal despite the pandemic’s sluggish demand and the world’s chip scarcity.
However, the Japanese automaker earlier this year informed shareholders that it anticipated a return to the black in the current fiscal year as the industry recovers.
What happened to the CEO of Nissan?
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.