202.5

The Latest: Ghosn to remain as CEO of Renault

Nissan Motor Co. President and Chief Executive Officer Hiroto Saikawa speaks during a press conference at Nissan Motor Co. Global Headquarter Monday Nov. 19, 2018, in Yokohama, near Tokyo. Saikawa said Monday that Nissan Chairman Carlos Ghosn, who helped turn around the carmaker over two decades, has been arrested and will be dismissed for allegedly under-reporting his income and misusing company funds. (AP Photo/Shuji Kajiyama)

PARIS (AP) — The Latest on the arrest and investigation into alleged financial misconduct by Nissan’s chairman Carlos Ghosn (all times local):

10:30 p.m.

Renault’s board of directors says that Carlos Ghosn will remain as chairman and CEO of the carmaker even though he is detained in Japan for alleged misuse of Nissan assets.

The board on Tuesday, however, tapped the carmaker’s No. 2, Thierry Bollore, to fill in for Ghosn while he’s “temporarily incapacitated.”

A statement issued after a three-hour board meeting said that the board was “unable to comment on the evidence seemingly gathered” against Ghosn, who was arrested Monday. It said Bollore, Renault’s chief operating officer, will lead “on a temporary basis.”

___

Previously from Tokyo:

11:30 p.m.

The governments of France and Japan are offering their support for the Renault-Nissan alliance even as its longtime leader Carlos Ghosn faces possible charges in Japan for hiding millions of dollars in income.

Ghosn’s arrest this week has thrown the future of the alliance, a leading world carmaker, into question.

A joint statement by French Finance Minister Bruno Le Maire and Japanese Economy Minister Hiroshige Seko said they spoke by phone Tuesday and praised the alliance as “one of the greatest symbols of Franco-Japanese industrial cooperation.”

The expressed “their shared wish to maintain this winning cooperation.”

Ghosn has led Renault, Nissan and their alliance. Nissan Motor Corp. announced Monday that Ghosn would be dismissed.

Renault’s board is meeting later Tuesday. The French government, which owns 15 percent of Renault, wants him replaced.

___

6:15 p.m.

France’s finance minister wants carmaker Renault to replace its once-superstar CEO Carlos Ghosn, who is facing accusations he under-reported income at partner company Nissan.

Renault will hold a board meeting Tuesday to discuss next steps after Ghosn’s arrest in Japan and planned dismissal from Nissan.

Ghosn runs Renault, Nissan and the Renault-Nissan-Mitsubishi alliance that he helped turn into the world’s biggest car-seller last year.

French Finance Minister Bruno Le Maire told broadcaster France-Info on Tuesday that Ghosn is not in a position to lead the Renault Group because of the accusations. He urged the board to name temporary leadership instead.

Le Maire said French authorities have examined Ghosn’s tax situation in France but have found no wrongdoing.

Renault officials refused further comment. Shares in Renault continued to fall Tuesday.

___

1:30 p.m.

The arrest of Nissan Motor Co.’s chairman Carlos Ghosn on charges he underreported his income and misused company funds caused the company’s shares to tumble and shocked many in Japan who view him as something of a hero.

Prosecutors said they were holding Ghosn and another Nissan executive for allegedly collaborating to falsify securities statements and underreport Ghosn’s income for five years.

Chief Cabinet Secretary Yoshihide Suga said Tuesday that the government was watching for economic fallout from the scandal at one of the world’s biggest automakers.

Ghosn was arrested Monday and Nissan’s CEO said the company’s board will meet on Thursday to approve his dismissal. Prosecutors refused to say where he was being held in Tokyo.

The Brazilian-born executive was credited with engineering Nissan’s revival over two decades.

Copyright © 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.



Advertiser Content