On Monday November 26th, Carlos Ghosn was dismissed from his position as Mitsubishi chairman. It has been reported Mr. Ghosn did not disclose a great sum of earnings over a five year period. The under-reported finances have been said to be a total of $44 million dollars.
Mr. Ghosn was ousted as Nissan’s chairman the week before. An internal source of information revealed Mr. Ghosn had been inappropriately conducting use of assets and funds within the company.
Carlos Ghosn became the key figure in rescuing Nissan from bankruptcy in 1999 by partnering with Renault which he was CEO and chairman of.
Over the years his pension for cost cutting was so renowned he earned the nickname, ‘le cost cutter.’ In his tenure as chairman of the Nissan-Renault Alliance, he cut 21,000 jobs, closed several factories and negotiated lower pricing to purchase raw materials for manufacturing.
His work ethic and revitalization of Nissan and Renault made him a corporate culture hero in Japan, landing him in Japanese comic books.
He was appointed Chairman of the Board of Mitsubishi Motors Corporation on October 20th 2016, after it was officially announced Nissan had acquired 34% stake in MMC on May 12th of the same year. This new partnership was dubbed the Renault-Nissan-Mitsubishi Alliance.
Technology-sharing, joint plant utilization, and common vehicle platforms were a few of the areas the three companies had agreed to share.
When it was announced Mr. Ghosn had been arrested on November 19th the news was hard-hitting. Many people were severely blindsided by the news of his detention because he had become such a respected figure in the auto industry.
Mr. Osamu Masuko, CEO of Mitsubishi Motors Corporation, has been named interim chairman of the Renault-Nissan-Mitsubishi Alliance.
Mr. Ghosn has since refuted the charges brought against him.