TOKYO — Nissan Motor Co. fired Carlos Ghosn as chairman Thursday, curtailing the powerful executive’s nearly two decade long reign at the Japanese automaker after his arrest for alleged financial improprieties.
In an hours-long meeting, the company’s board of directors voted unanimously to dismiss Ghosn as chairman and as a representative director, Nissan said in a statement. It said its own internal investigation, prompted by a whistleblower, found serious misconduct including under-reporting of his income and misuse of company assets.
It was a stunning downfall for one of the biggest figures in the auto industry, a man who helped drive turnarounds at both France’s Renault SA and at Nissan and then managed an alliance between them that sold 10.6 million cars last year, besting its rivals.
Nissan said in a statement filed to the Tokyo Stock Exchange that its investigation uncovered misuse of company investment funds and expense money for personal gain.
Earlier this week, Renault voted to keep Ghosn as its chief executive but appointed Thierry Bollore, its chief operating officer, as its interim chief.
Another Nissan executive, Greg Kelly, was arrested in Japan on suspicion of collaborating in the wrongdoing and also will be dismissed as a representative director, Nissan said. Their replacements will be decided later, it said.
Ghosn, 64, is suspected of under-reporting $44.6 million in income from 2011 to 2015, according to Tokyo prosecutors.
Nissan’s board consists of nine members, including Ghosn and Greg Kelly. The seven other board members voted at the meeting, including two members from Nissan and two from Renault.
Ghosn and Kelly will remain on Nissan’s board for now as that decision will be up to shareholders. No date has been set yet for a shareholders meeting.
Ghosn is also chairman at Mitsubishi Motors Corp., a smaller Japanese automaker that’s partnering with the Renault-Nissan alliance and plans to hold a board meeting next week.
Ghosn has been held since his arrest Monday at a Tokyo detention
Under Japanese law, suspects can be held for 20 days per possible charge without an official indictment. Additional charges can be tagged on, resulting in longer detentions. Neither has been charged so far.
The maximum penalty upon conviction for violating finance and exchange laws is 10 years in prison, a 10 million yen ($89,000) fine, or both.
A French citizen born in Brazil, Ghosn became something of a corporate superstar in Japan as he led Nissan’s revival from near bankruptcy after Renault sent him to help in 1999.
Ghosn served as Nissan’s chief executive from 2001 until last year. He became chief executive of Renault in 2005, leading the two automakers simultaneously. In 2016, he also became chairman of Mitsubishi Motors Corp. after Nissan took it into the alliance.
Kelly, 62, joined Nissan, maker of the Leaf electric car and Infiniti luxury models, in the U.S. in 1988. He became a board member in 2012. His background is in human resources and alliance management.
Analysts say the future of Nissan’s alliance with Renault may be at stake, though Nissan’s statement Thursday said the company’s leadership was determined to minimize the impact from Ghosn’s case on the partnership. Renault owns 43
“The longstanding alliance partnership with Renault remains unchanged,” the Nissan statement in English said, stressing the alliance rather than the misdeeds.
It also said the board will study setting up a third-party committee to beef up governance in management and compensation at Nissan.
CEO Hiroto Saikawa, in a lengthy news conference on Monday, said too much power had been concentrated in Ghosn, with too little credit given to the many others working for the company’s success.
Janet Lewis, managing director and head of industrial research, Asia, at Macquarie Capital Securities in Tokyo, said in an interview that an adjustment was needed to give Nissan more say in the alliance with Renault.
The partnership remains crucial for both companies, she said, since apart from financial ties the companies share technology and parts.
The automakers need to be more like roommates than a married couple, “So they have to find a way to share their house and share all of their expertise because it’s very necessary in terms of new automotive technology, new platform development,” Lewis said.
“They need to figure out how they can continue this and still live happily together in the same house.”
Associated Press writer Mari Yamaguchi contributed to this report.
Yuri Kageyama is on Twitter at https://twitter.com/yurikageyama
On Instagram at https://www.instagram.com/yurikageyama/?hl=en
Yuri Kageyama, The Associated Press
Insurance rate increases absolutely unacceptable: NDP Critic for Service Alberta
This post was submitted by Jon Carson, NDP MLA for Edmonton-West Henday, Opposition Critic for Service Alberta
Thirty per cent.
That’s how much auto insurance rates skyrocketed by for some Albertans at the end of this year, after Premier Jason Kenney and the UCP removed the five per cent cap on rate increases that our NDP government brought in, taking a “no limit” approach to how much insurance companies could actually raise rates.
The jump was immediate.
Albertans saw a wave of premium increases bordering on price gouging. Over 90% of car insurance companies filed for rate increases as soon as the cap was lifted, and rushed to bill drivers as soon as they could. Of the companies that received approved rate changes, the increases ranged from 4.9 per cent to an eye-popping 29.8 per cent.
It was a nice gift from Jason Kenney, who already slammed families for hundreds of dollars of new costs in his fall budget, including hikes to income tax, property tax, as well as more in school fees, prescription drugs and college tuition.
As usual, Finance Minister Travis Toews trotted out the UCP’s one-trick pony and blamed the NDP, claiming that insurance companies were set to pack their bags and flee the province if he didn’t let them jack up premiums beyond five per cent.
The lobbying effort came out in full force. The brokers, the insurance companies, and the Insurance Bureau of Canada are working overtime to sell quite the sob story: a massive spike in claims costs, not enough options for drivers, etc, etc. It’s tough times for the poor, little ol’ car insurance company.
What a load. These are some of the biggest and most profitable companies in Canada, and they simply want back the power they had to jack up premiums hand over fist.
The truth is that claims costs over the past few years are level, a fact that’s supported by the Insurance Bureau of Canada‘s own data. In fact, an actuarial analysis by Fair Alberta Injury Regulators, an organization made up of concerned Albertans, doctors and legal experts, found that injury payouts have stabilized in the last few years, and even started to dip in 2019. Their actuary specifically found evidence that claims are “not skyrocketing.”
This is further supported by the Alberta Superintendent of Insurance, responsible for all regulatory oversight of insurers operating in Alberta with a specific duty to ensure that insurance companies treat Albertans fairly. In his annual report for 2018, he found on average that the claims ratio for car insurance was 80 per cent across all companies in Alberta. Not the 120 per cent figure the insurance companies trot out on TV.
And while the UCP Government continues to claim they have documents to prove the cap made the car insurance industry unsustainable, they haven’t provided a single piece of paper showing any of these companies would bail if they could–GASP–only raise premiums five per cent every year.
So why remove the cap? Well, in politics, it’s who you know. And Jason Kenney knows an awful lot of people in the insurance industry. Namely, his former chief of staff and campaign director Nick Koolsbergen, who was hired to lobby the Premier on behalf of the car insurance industry just last year. He has Kenney’s cell phone number.
Sounds like a good guy to have on your side… if you’re a car insurance company.
The fact is, these companies turn a profit of tens of millions of dollars each year. They’re used to having carte blanche in Alberta, and they want it back.
Under the thinly-veiled guise of “red tape reduction”, the UCP has struck a panel looking at more regulatory changes that the insurance lobby itself has said “could also change the rate regulation framework that governs how insurers set premiums.”
If costs are going to go up even more, who will Jason Kenney look out for? His friends and interests in big insurance? Or everyday Albertans driving to work?
Knowing Jason Kenney, Albertans should brace for impact.
Jon Carson is the MLA for Edmonton-West Henday and the Alberta NDP Opposition Critic for Service Alberta.
Is it time for a Wheel Alignment?
Bad roads can be your wheels’ worst enemy. If you drive down poorly maintained roads, drive through potholes, or even hit a curb, your alignment can be greatly affected. This can cause even the slightest, tiniest alignment issue, which can accelerate uneven tire wear. Make sure you have your alignment checked every 9,500 km or every other oil change. Your tires and your wallet will thank you later. Uneven tire wear is a symptom of bad wheel alignment. Ideally, tires should wear evenly across the tread. If you’re noticing excessive wear on the rear inside tires, you may have too much junk in the trunk or need an alignment adjustment.
Uneven tire wear can also result in less KPL’s and more pain at the gas pump. How will a wheel alignment help my vehicle? Repeat after us: A wheel alignment ensures optimal drivability. It will help your tires last longer, your vehicle drive smoother, ultimately keeping your wheels pointed in the right direction. And, when it drives more smoothly, it’s smooth sailing—or should we say cruising—ahead. Plus, your car will require less energy to keep going, potentially saving a ton of fuel depending on how much alignment was required. Tires are expensive. Keeping them aligned isn’t.
How will a wheel alignment help my vehicle?
Repeat after us: A wheel alignment ensures optimal drivability. It will help your tires last longer, your vehicle drive smoother, ultimately keeping your wheels pointed in the right direction. And, when it drives more smoothly, it’s smooth sailing—or should we say cruising—ahead. Plus, your car will require less energy to keep going, potentially saving a ton of fuel depending on how much alignment was required. Tires are expensive. Keeping them aligned isn’t.
How can I tell if my car’s alignment is off?
There are some noticeable signs that could indicate a misalignment. Just use your eyes, ears and hands. Your senses (and even the good old personal hunch) are good human capital for spotting poor alignment. Here are some common signs that you are dealing with wheels with poor alignment:
• Vehicle pulling to the left or right
• Uneven or rapid tire wear
• Your steering wheel is crooked when driving straight
• Squealing tires
Call to book 403.343.6633 or book your appointment at kippscott.ca
Your event has been CANCELLED
Active shooting incident in Airdrie – Multiple injuries from BB guns
INDIGENOUS CONSULTATION AND ENGAGEMENT AT CANADA’S ENERGY AND UTILITY REGULATORS
Government plans to remove offensive name from mountain in Banff National Park
Alberta18 hours ago
Your event has been CANCELLED
Alberta2 days ago
RCMP say body located of man who fell in river during stop for photos in Banff
COVID-191 day ago
Question the COVID Status Quo
Alberta2 days ago
Alberta declares outbreaks at university in Edmonton, hospital in Calgary
Red Deer2 days ago
Downtown Business Spotlight: Stella Bean Sweets
Opinion22 hours ago
Thoughts from Tom Chapman on keeping the Molly Banister Extension
Alberta2 days ago
Alberta police watchdog investigating fatal police shooting in Edmonton
Alberta2 days ago
Obsidian Energy formalizes share swap bid for Calgary rival Bonterra Energy