Nissan apologizes after executive misconduct hits stock price

The automaker group offered a mea culpa after chairman Carlos Ghosn was arrested by Japanese authorities for financial crimes. The company promised to cooperate with authorities.

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The chairman and former CEO of Nissan is out after an investigation revealed he had underreported income to avoid paying taxes and used company funds for personal expenses.

Now Carlos Ghosn has been arrested by Japanese authorities, leaving a leadership vacuum at several major car manufacturers.

Ghosn stepped down as CEO of Nissan in 2016 after the company took a 34 percent stake in Mitsubishi Motors, where Ghosn also became chairman. Ghosn is also CEO and chairman of French carmaker Renault.

The shocking news puts at risk the carmakers’ alliance, which builds one out of every nine cars sold worldwide. All three companies have seen their stock price dip after the news broke.

Nissan tried to paint itself as a victim of Ghosn, saying the former CEO misused company funds.

It wrote in a statement:

Based on a whistleblower report, Nissan Motor Co., Ltd. has been conducting an internal investigation over the past several months regarding misconduct involving the company’s Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly.

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