The board of Japanese automaker Mitsubishi Motors, which is allied with Renault and Nissan, met on Monday to decide whether to retain Carlos Ghosn as its chairman after his arrest last week.
Prosecutors arrested Mr. Ghosn on November 19 on suspicion of under-reporting his income by $44 million over five years. Seven of Mitsubishi’s eight-member board were meeting in Tokyo, the company said. The board consists of Mr. Ghosn, Mitsubishi Motors Chief executive Osamu Masuko, two members from Nissan, two from the Mitsubishi group companies and two outsiders consisting of a writer and an academic.
Mr. Ghosn’s arrest in Tokyo marked a stunning fall for an executive who dominated the Japanese auto industry for two decades and spearheaded Nissan’s alliance with Renault SA of France. Ghosn also led the incorporation of Mitsubishi into the alliance. Nissan took a 34% stake in Mitsubishi in 2016 after the smaller automaker was embroiled in an inspections-reporting scandal.
Nissan Motor Co., which has already ousted him as its chairman, says an internal investigation revealed that Mr. Ghosn abused both the company money and assets. Renault has kept Mr. Ghosn as the chief executive. However, considering the makeup of Mitsubishi’s board, little opposition to his dismissal is expected. The future of the alliance with Mitsubishi, being more recent, could be even more precarious.
Japanese media, citing unidentified sources, have reported that Mr. Ghosn and Greg Kelly, an executive who was arrested on suspicion of collaborating with Mr. Ghosn, are asserting their innocence. Mr. Ghosn has not commented publicly on the same.
The two executives have not yet been charged. Under Japanese law, a suspect can be held in custody for up to three weeks per suspected charge without any charges being filed.
