Tokyo, Paris back car firms amid scandal

Share prices of Nissan, Renault and Mitsubishi Motors tanked yesterday, as more details continued to emerge of the extent of car industry mogul Carlos Ghosn's financial misconduct.
Share prices of Nissan, Renault and Mitsubishi Motors tanked yesterday, as more details continued to emerge of the extent of car industry mogul Carlos Ghosn's financial misconduct.PHOTO: REUTERS

Japan and France last night stressed their support for the beleaguered Nissan-Renault alliance, whose future has come under doubt with the shock arrest of influential car industry mogul Carlos Ghosn for financial misconduct.

Share prices of Nissan, Renault and Mitsubishi Motors - the third company in the alliance - tanked yesterday, as more details continued to emerge of the extent of Mr Ghosn's purported wrongdoing.

Besides allegedly understating his income by 5 billion yen (S$61 million) over five years, he reportedly used Nissan funds to pay for his luxury homes in Rio de Janeiro, Beirut, Paris and Amsterdam "without any legitimate business reason".

Observers said the fiasco raises questions over Nissan's governance structure.

Mr Ghosn will be formally ousted as Nissan chairman at a board meeting tomorrow.

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A version of this article appeared in the print edition of The Straits Times on November 21, 2018, with the headline 'Tokyo, Paris back car firms amid scandal'. Print Edition | Subscribe