business

News of Ghosn's arrest stuns Nissan employees, customers

18 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© KYODO

©2019 GPlusMedia Inc.

18 Comments
Login to comment

All his books are handled by accountants at the company. He doesn't fill out tax forms with a ball point pen every year like we do.

Mitsubishi wants to run the show and he was in the way.

9 ( +11 / -2 )

Japan recently introduced 'plea deals' into the justice system.And this 'whistle-blower' revealed this situation for a lighter penalty for himself according to the morning gossip shows.This will be the one and ONLY case that brings down a prominent businessman in Japan via this method.Unless he's a foreigner.

1 ( +2 / -1 )

The accountants at Nissan who actually filed his taxes are probably at Narita Airport now to flee Japan.

1 ( +2 / -1 )

Ghosn gone!

More troubling are problems with data falsification and so on with Nissan and Mitsubishi products, which are less-highlighted (or have been till now).

2 ( +2 / -0 )

One more nail in the coffin of Japan, Inc?

1 ( +4 / -3 )

GTR's all over the country will be coughing and spluttering in sympathy.

2 ( +2 / -0 )

All his books are handled by accountants at the company. He doesn't fill out tax forms with a ball point pen every year like we do.

Mitsubishi wants to run the show and he was in the way.

Thats not entirely correct. While yes Nissan will report his earnings for him that are earned from Nissan, he still has to report earnings from overseas remuneration. Thats on him, not Nissan to report. Mitsubishi also has no benefit to this, as they dont even own a significant share in either Nissan or Renault.

Remember, they are an alliance, not a group company. Each company has to do accounting and book keeping separately. Since Ghosn is the CEO of Nissan, as well as Renault, he has to report earnings from abroad as well as any personal undertakings: i.e Lectures, Speaking events etc.

0 ( +0 / -0 )

might consider purchasing from outside Nissan when I replace the current one.

I have been driving my Nissan for 6 years and it has been a great, dependable car. Why should I decide my car because of the salaries of the executives? I just want a car to take me from point A to point B.

4 ( +4 / -0 )

Thats not entirely correct. While yes Nissan will report his earnings for him that are earned from Nissan, he still has to report earnings from overseas remuneration. Thats on him, not Nissan to report. Mitsubishi also has no benefit to this, as they dont even own a significant share in either Nissan or Renault.

> Remember, they are an alliance, not a group company. Each company has to do accounting and book keeping separately. Since Ghosn is the CEO of Nissan, as well as Renault, he has to report earnings from abroad as well as any personal undertakings: i.e Lectures, Speaking events etc.

> Typical, people who know nothing of how Japan ACTUALLY works running their mouths and claiming racism and poor treatment because he's a foreigner.

This also isn't quite correct. Or actually it is correct but slightly besides the point. This isn't a tax case so whether or not he misreported income from sources outside Nissan/Renault isn't what is at issue. The issue is that he specifically took more remuneration from Nissan than what was reported (via disclosure documents submitted to the Tokyo Stock Exchange) to the shareholders of the company.

The specific document he is in trouble for is this one (and previous years' versions of it), which was submitted to the TSX and filed with the Securities regulator and claimed that his remuneration was 735 million Yen last year (on page 43), which is apparently much less than what he actually received.

Its worth noting that there is only one other Nissan employee who earns more than 100 million Yen per year (about $900,000 US or so) and that is Saikawa, who received 499 million. So his remuneration, even the legit amount, is astronomical compared to that of other executives. Ghosn and Saikawa gobbled up almost 90% of the pay for the entire 12 member board of directors.

https://disclosure.edinet-fsa.go.jp/E01EW/download?uji.verb=W0EZA106CXP001003Action&uji.bean=ee.bean.parent.EECommonSearchBean&PID=W1E63013&SESSIONKEY=1542680281824&lgKbn=1&pkbn=0&skbn=1&dskb=&askb=&dflg=0&iflg=0&cal=2&mul=72010&fls=on&mon=&yer=&pfs=4&row=100&idx=0&str=&kbn=1&flg=&syoruiKanriNo=&s=S100DHAZ

3 ( +4 / -1 )

I'm interested why the executives of all the other big J-companies don't face the same swift justice as this foreign guy (assuming he committed a crime). Although, the answer is quite obvious...

Like the plant operator in the article said, "To be honest, I'm disgusted with a series of misconduct scandals" involving Nissan, apparently referring to recent scandals over quality checks. "I want the company to be responsible.

Japan gets away with treating regular people in the world this way. But doing it to a big fish like Ghosn may have undesirable consequences for J-Inc.

4 ( +4 / -0 )

This also isn't quite correct. Or actually it is correct but slightly besides the point. This isn't a tax case so whether or not he misreported income from sources outside Nissan/Renault isn't what is at issue. The issue is that he specifically took more remuneration from Nissan than what was reported (via disclosure documents submitted to the Tokyo Stock Exchange) to the shareholders of the company.

The specific document he is in trouble for is this one (and previous years' versions of it), which was submitted to the TSX and filed with the Securities regulator and claimed that his remuneration was 735 million Yen last year (on page 43), which is apparently much less than what he actually received.

You sir have just made my day. Thank you for the educated and informative response. As I didnt really want to delve into the exact reasons behind the charges I just assumed (as most of the information floating around is really poorly worded) that it was related to tax under-reporting. This is arguably an even worse breach of trust for Nissan and would be entirely on him for reporting it.

1 ( +2 / -1 )

Well it will be bankrupt again that's for sure and the workers had larger pay checks. All the workers that were cut from their declining days all were rehired, so back to bankruptcy soon enough. Saikawa has zero management skills and can't continue to create the strong strategies needed to make a company of three last long.

Look what happened to Subaru, GM, land Rover, jaguar all failed car companies

-2 ( +1 / -3 )

Unlike Toyota, which is family-owned, Nissan has always been beset by factionalism, between the engineers and accountants. (Read "The Reckoning" by David Halberstam.) There were people who opposed foreign ownership/involvement from the get-go, even if it did save the company's hide. Basically to warrant the exalted title of "shacho" in a Japanese manufacturing company, a candidate must have entered directly following graduation from Todai or Keio and worked his way up through the ranks. In Nissan, all it took were a few people with incriminating data to get together and start plotting Ghosn's ouster. I'm surprised he lasted as long as he did.

7 ( +8 / -1 )

Look what happened to Subaru, GM, land Rover, jaguar all failed car companies

These are not failed car companies, in fact I've recently bought a new Land Rover.

1 ( +1 / -0 )

I can't say for sure of his guilt or innocence. However, unless this affects the quality of the cars themselves, I wouldn't let that get in the way of purchasing a car (Nissan, in this case) for it's very good quality and I suppose good customer service.

0 ( +0 / -0 )

From my experience, the share-holders, the Kansayaku & the accountants and top operators are involved. But to destroy a person's life at 64 years old...................that's is too much. Let's see what will happen. all people can be sure.........the whistle blowers had not very good brains or hearts.Hope the Japanese people will not spare these jealous people.

-1 ( +1 / -2 )

All good Japanese people must remember that Carlos is a foreigner on their land. If ego & jealousy and bad actions destroy a foreigner that saved Nissan for 20 years. All good Japanese must remember that salary is only a pay of work. If they did not agree at first, do not hire Carlos. Pay less and hire 10 of Japanese who could not have saved Nissan.

-1 ( +1 / -2 )

None of it makes sense.  I am a self-employed foreigner and have been for 24 years and when I go to the tax office every year I need help to have them filled out by a the tax office people because the papers are not in English.  I am sure this savvy businessman must have someone filing his taxes, because he is in the same shoes as me and even if someone were to show him the tax papers he must have them explained to him prior to the filing and or believed in the person who was doing the filing and never worried about any errors.

My gut says there is more to this arrest and even if this man is proven innocent his image has been tarnished and there is no going back to his position and what a shame after all his hard years of work should this arrest been a set up.

1 ( +1 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites