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Arrest of Ghosn raises speculation over coup by Nissan

60 Comments
By Yuri Kageyama

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took over a month to figure that out!?

25 ( +27 / -2 )

Now the world is able to see Nissan's dirty laundry and Saikawa's skeletons, good job guys! The longer you hold him, the more the rest of the world sides with Ghosn and starts asking more question about what the hell is really going on.

"Oh, but he had a few luxury condos and bought expensive things! He's obviously greedy and guilty!" I've heard several Japanese people say that as well, yeah well the company probably would have gone bankrupt if it wasn't for Ghosn so I'd say he probably deserves to enjoy his life a bit. The fact that that's the only real attack you see on him these days in the Japanese media just shows how desperate the prosecution is to get the public on their side without any substantial facts.

17 ( +22 / -5 )

Conspiracies abound!

0 ( +4 / -4 )

As I said in a previous comment. It was all about the Japanese leadership in Nissan holding on to control.

Takaki Nakanishi, auto analyst and chief executive at Nakanishi Research Institute Co. in Tokyo, said the "traditional people at Nissan" were unhappy that foreign interests had more say in management than they did.-

How did Nakanishi san get this information? Based on a few interviews? Colleagues? I would say the sentiment went all the way to the top and Nissan shareholders.

"There is a strong sense among Nissan employees that Nissan must be Japanese," said Tetsuya-

Define please "must be Japanese" To turn your back on the CEO that virtually saved Nissan from utter destruction?

Some analysts say Ghosn's ouster also reflects nationalism at Nissan.-

Ya think?

Under Saikawa, Nissan's sales and profits have faltered, especially in the key North American market.-

Now why are Nissan sales falling off in the U.S markets? Here is why. Tariffs on steel, aluminum and other raw materials announced by President Donald Trump have had some negative effect, but they were only a small part of the overall rising cost of raw materials, which dented profitability. The effect of some unfavorable currency exchange rates in emerging markets also hurt earnings.

Long simmering dissent within Nissan's Japanese ranks is the backdrop to the Nov 19 arrest of Ghosn and an American executive, Greg Kelly, on suspicion of falsifying financial reports.

Ghosn and Kelly simply had to much power with in Nissan. So the think tank went to work in Japan. No way is Nissan ever going to be owned.

They were also afraid Nissan will be unfairly used for French stakeholders or the ambitions of Carlos Ghosn," he said. "Inside Nissan, I felt, there was a lot of confusion, complaining, fear."

Seems to me the masterminds are all at Nissan.

Watanabe, a critic on economic issues, describing the handling of Ghosn's case as "kamikaze."

More like Seppuku for Nissan.

The whole thing stinks to high heaven. Maintain your innocence Ghosn and Kelly.

Divorce can be nasty.

14 ( +17 / -3 )

Definitely don't get involved with Japanese companies

11 ( +16 / -5 )

But now the Justice Ministry is entangeled with this tar baby. IMHO, they've bitten off more than they can chew, and how to disgorge themselves of this without worldwide embarassment now takes presidence over any concept of "justice."

17 ( +17 / -0 )

I still wonder how the foreign born, no Japanese speaking or writing CEO of Nissan could do all this evil financial manipulation all by himself, and totally without any Japanese person being involved.

13 ( +17 / -4 )

Japanese media and some analysts have raised the possibility that the charges against Carlos Ghosn were engineered to sideline him and give Nissan an excuse to end a lopsided alliance with French automaker Renault SA.

You don't say? these reporters are quick? Monster energy drink helped?

14 ( +14 / -0 )

" Japanese media pointed to spending on several luxury homes as evidence of such misconduct" I thought in a previous article by the media, that the properties were owned by Nissan, so that makes the Alliance guilty of any misconduct of funds if those properties were not reported in tax filings or company reports to shareholders.

13 ( +13 / -0 )

In the short, medium and long term; it must make a lot of foreign companies and executives wary of entering any relationship with a Japanese company.

I recommend reading, 'The life and Death of a Joint Venture'. Very few people think of what will happen 10 or 20 years later, when one partner has outgrown the other, the company fails, or when power factions change.

6 ( +6 / -0 )

"homes in Brazil, Lebanon and other cities were needed for security reasons."

it's also convenient to not pay income tax in Japan.

-15 ( +2 / -17 )

Meanwhile, where is Mitsubishi in all this?

1 ( +3 / -2 )

I still wonder how the foreign born, no Japanese speaking or writing CEO of Nissan could do all this evil financial manipulation all by himself

Not all by himself.  With an American lawyer Greg Kelly.  Nobody in Japanese execs know what was his job in the company.

-20 ( +1 / -21 )

Takaki Nakanishi, auto analyst and chief executive at Nakanishi Research Institute Co. in Tokyo, said the "traditional people at Nissan" were unhappy that foreign interests had more say in management than they did.

Unhappy, but at least you have a job you ungrateful sods!

3 ( +4 / -1 )

it's also convenient to not pay income tax in Japan.

His income is but a tiny fraction of the tax revenue Japan will lose when Nissan goes out of business. But you can take solace in the fact that, when they do go bankrupt, they will go bankrupt as a purely Japanese company. And the unemployed will be purely Japanese. Because that's what's important.

11 ( +11 / -0 )

"What is fascinating about this story is the politics of it," said Egor Matveyev, an assistant professor of finance at the MIT Sloan School of Management. 

Speed of law enforcement for Gohsn case can only happen with carefully planned move from Nissan insider. Not so many major corporate scandals in Japan last few years can be compared to what happened to Ghosn.

Even during Olympus' case, Michael Woodford hired PWC to check accounting anomaly so his report can easily be used by Japanese law enforcement to follow up and nobody being detain or arrested.

-1 ( +2 / -3 )

“said the homes in Brazil, Lebanon and other cities”

TILT: Brazil and Lebanon are cities!

3 ( +4 / -1 )

Renault should offer to trade its shares in Nissan for equal value shares in Hyundae, Kia, Daewoo or maybe a Chinese auto company. That would really put the cat among the pigeons.

1 ( +1 / -0 )

I think he probably is dodgy, but no doubt Nissan is making hay while the sun shines.

I'm sure if its ever discovered that this was a plot engineered by Nissan than Macron might have a few words to say about the E.U/Japan free trade agreement and if that ever gets respected.

France can be very protectionist. Expect blow back.

I've been critical of China and their recent actions, but the Japanese legal system makes them look decent in comparison.

1 ( +4 / -3 )

Talk about concluding the blatantly obvious...

2 ( +2 / -0 )

This kind of kamikaze destroyed a good harmony & joint interests of 3 motor cars companies & their share-holders. Now, who do U think is making the misunderstandings & back stabbing in Nissan ???. I have been watching this case since Carlos , it started began . I truly do not know Carlos personally but trying to be a hero for the share-holders, the people of Nissan ???. Only U thought U can.Surely, one or two or even 3 foreign people cannot do it in Japan with Japanese people. It is not time to hide anymore, come out of giving excuses & using a foreigners as yr excuses for yrself. Only a bad small Japanese will do such kind of cowardly actions. Nobody has too much power, it is only in yr mind. Every good Japanese knows that this kind of actions cannot be done by any foreigners in Japan. Japan have the most complicated writing in this part of Asia. Think of the life of a man that saved yr car company. If Carlos is not allowed to be with his family in Japan at home before Christmas. All good foreingers with good brains in the world will never forgive Nissan or worked with heart for Japan Inc & good Japanese people. Pls show the world that fair Japanese people still exists in Japan.

0 ( +2 / -2 )

! still wonder how the foreign born, no Japanese speaking or writing CEO of Nissan could do all this evil financial manipulation all by himself, and totally without any Japanese person being involved.

A Japanese person would have to be involved, but given Ghosn's position in the firm, those undertaken the actions would have been following the orders of a superior.

Almost definitely it could not have been done without the co-operation of the CFO, normally the number 2 in any organisation, and an accountable individual.

2 ( +3 / -1 )

Nissan is making hay while the sun shines.

Far from the sun shines.  Nissan seems suffering from unfair treatment by French people.  Renault is sending its engineers to Nissan and telling what to do to Japanese engineers. They wouldn't listene to Nissan.  Many Japanese engineers left the company.

-11 ( +1 / -12 )

Where is Mitsubishi,well motors in this affair, maxbe lost in Yamaguchi?

0 ( +0 / -0 )

Summation — Greed!

1 ( +2 / -1 )

Nissan doesn't want to be owned by Renault anymore? Fine, Renault can sell

its 43% to another car company. A Chinese one, for example.

5 ( +6 / -1 )

Far from the sun shines. Nissan seems suffering from unfair treatment by French people. Renault is sending its engineers to Nissan and telling what to do to Japanese engineers. They wouldn't listene to Nissan. Many Japanese engineers left the company.

So what???

That's what companies do...company is not working well? Then, we sent our professionals to make it work...don't like changes? well, you have just two choices: stay and change yourself or leave...those Japanese who left... well, they made their choice...nothing more nothing less...:-)

1 ( +1 / -0 )

Yeah, is Mitsubishi just simply a subsidiary of Nissan now, then?

0 ( +1 / -1 )

Nissan seems suffering from unfair treatment by French people. Renault is sending its engineers to Nissan and telling what to do to Japanese engineers. They wouldn't listene to Nissan. Many Japanese engineers left the compan

Aah...ok. playing the typical victim card again ne...poor old Japan bullied by the big bad gaikoku...broken record.

4 ( +5 / -1 )

A thriller that Ghosn doesn't want to read.

-3 ( +0 / -3 )

It's interesting that French people on facebook pages of French media praise Japanese authorities for the arrest of Ghosn while experts here.....

-4 ( +1 / -5 )

Ghosn can give up the "planned" deferred retirement payment from Nissan. The royalties he will get from books and movies will be enough for a good living. Could he be guilty or not since it will reveal the Japanese justice is completely flawed and JT Inc. governance near the absolute zero.

But the damage to Japan image will be huge, which will make up the money loss for him (his ego is big, nobody challenge that).

1 ( +3 / -2 )

no Japanese speaking or writing CEO of Nissan 

Really? Funny, if I lacked Japanese language skills, the only job I'd get here would be teaching English.

-2 ( +1 / -3 )

Could he be guilty or not since it will reveal the Japanese justice is completely flawed

A CEO sent by Renault, with the help of his American buddy deliberately had his paycheck documents doctored to avoid paying all the taxes, but somehow it is all the fault of Nissan and Japan as a whole. Funny. How come?

-3 ( +1 / -4 )

Ninja ?

-1 ( +0 / -1 )

@ Asakaze

I must have missed something.

As far as I am aware there is nothing about tax avoidance in Ghosn's case and I have not heard any proof that there has been any doctored documents about his pay-check.

I am only aware of some joint intention between Ghosn and Nissan board for deferred payments that are still under assessment from a legal standpoint if they should have been declared or not.

The Japanese justice simulacre has already been exposed and recognised widely and will be amplified to a very damaging extent with this case with absolutely no doubt.

3 ( +3 / -0 )

jtulolDec. 13  11:43 pm JST

It's interesting that French people on facebook pages of French media praise Japanese authorities for the arrest of Ghosn while experts here.....

Can you please share these pages.

In argumentation, citing sources are very important.

2 ( +2 / -0 )

Open Minded, Ghosn already committed a crime by denying before admitting the fact that he knew what he was accused of. That is unfortunate. Did Ghosn made terrible crime against Nissan ? I don't think so. But why would Ghosn make such a miserable mistake, giving his status ?

-6 ( +1 / -7 )

Notice the use of "fat cat" and other supposed derogatory terms, for the man who was the wonderkid who saved Nissan, to the Japanese, but a short while ago. Japanese business will stab you in the back. Remember Shinju-wan.

4 ( +5 / -1 )

Yep...and Saikawa will lose this power struggle.Even if Ghosn ends up in prison for years, who except the yakuza will ever trust grease-man Saikawa again?

-1 ( +2 / -3 )

There is a fundamental flaw in Nissan's management structure, if not in the whole Japanese industry. When the power is concentrated in a very few men, and if the very few men are foreign in culture, a crisis happens.

-5 ( +1 / -6 )

Akie...."foreign in culture".... hahaha and... hahaha...who is responsible for the scandals of Olympus, Takata, etc etc etc....... hahaha! Deflect deflect deflect! You should work for the Trump White House!!!

4 ( +5 / -1 )

It's only downhill for Nissan from now on.

Ghosn was the only reason Nissan was alive and health.

Under the Japanese management, it will go back to bankruptcy soon.

3 ( +4 / -1 )

@buzzyboy

falsify financial reports....to avoid shareholders criticizing him...which technically is a crime in Japan, if it's over a certain amount...but nothing about not paying taxes

Seriously? Read again the article: "Nissan as a legal entity was charged Monday, along with Ghosn and Greg Kelly, another board member, with violating financial laws in underreporting Ghosn's income by millions of dollars over several years". Classic tax-avoiding scheme. It seems you need to upgrade your text-comphrehension skills, even if English is your native language.

for the man who was the wonderkid who saved Nissan

So? You imply he must be above the law?

0 ( +1 / -1 )

Under-reported income is deferred, future income. If he was supposed to report that too....well...maybe Asakaze is an expert in corporate law...can you tell us whether this is taxable NOW, or not?

1 ( +2 / -1 )

Pls do not destroy the good reputation of good Japanese people.

Yes, the are many good, kind, honest, hardworking people in Japan. And they deserve better than the fourth rate legal system that their country now has.

After WW2 Japan was given a new democratic constitution based on justice, fairness, democracy, rights.

Somehow, in the case of the judiciary, something as gone seriously wrong.

2 ( +2 / -0 )

Jimi, believe it or not, Ghosn would use my argument to defend himself at the court. There are many reasons for a company fall, but in this case, to this sage, there is cultural shock. If I were Ghosn, I wouldn't hire another high profile foreign person in decision making team. The fact that Ghosn did revealed that he isn't competent in controlling Nissan.

-2 ( +1 / -3 )

Ghosn isn't a savior. If Nissan failed, it was Japanese fault; if Nissan succeeds, it is Japanese success. Ghosn was hired by Japanese to do a job for the Japanese company. He is only a part of Nissan, no more and no less.

-3 ( +1 / -4 )

Akie:Ghosn isn't a savior. If Nissan failed, it was Japanese fault; if Nissan succeeds, it is Japanese success. Ghosn was hired by Japanese to do a job for the Japanese company. He is only a part of Nissan, no more and no less.

Excellent point Akie.

Moreover, if Ghosn saved anyone he saved Renault.

The deal he ratified with Nissan worked to the advantage of Renault.

Besides who was buying is even is buying Renault? Renault did not have the technology the Japanese automakers had.

Because of NISSAN, Renault is offering over 150,000 people globally job.

When NISSAN goes, a lot of those jobs will go .

Ghosn also USED his position at Nissan and Nissan money to buy homes ; he directed Nissan funds to family members.

It seems that Ghosn USED Nissan for his personal and global ambitions.

If there is a coup - he opened himself up to it..

-2 ( +1 / -3 )

Renault's own internal investigation has cleared Ghosn, and he will stay on as the CEO of Renault.

So this is a shaping out to be a coup by Japanese executives trying to oust a Gaijin CEO who saved them from bankruptcy.

https://www.bloombergquint.com/business/renault-probe-uncovers-no-wrongdoing-by-ghosn-on-compensation

Renault Keeps Ghosn at Wheel After Probe Finds No Pay Wrongdoing

Ania Nussbaum

(Bloomberg) -- A Renault SA probe found that jailed Chief Executive Officer Carlos Ghosn’s compensation at the French carmaker complied with French law, sending another signal of division with its alliance partner Nissan Motor Co.

1 ( +1 / -0 )

Renault was a second class car maker when it drew up the alliance with Nissan.

Renault does not have the technology .

If Nissan leaves. ( and it probably will)

That is the end of Renault.

-2 ( +0 / -2 )

All of the posters here who are making this into a "gaijin thing" are conveniently ignoring the fact that there have been Japanese corporate executives who have received similar or harsher treatment. To cite a couple of examples Horie Takafumi and Ezoe Hiromasa. There have also been LDP politicians and top level Japanese bureaucrats who have received similar treatment.

Whether this case will put foreign executives off coming to Japan is an open question. China has a very arbitrary legal system that has been used politically against foreign nationals. At this very moment it appears that it is being used against two Canadians. A long track of doing this kind of thing on the part of the Chinese government does not seem to stop the flow of foreign businessmen to China. This is even more the case for Russia.

Businessmen by definition go where there is money to be made not where the legal system meets some idea criteria.

2 ( +4 / -2 )

bullfighter Businessmen by definition go where there is money to be made not where the legal system meets some idea criteria.

Excellent post !

-1 ( +0 / -1 )

Renault's own internal investigation has cleared Ghosn

Which proves my point .

Ghosn -when he got comfortable with the J system, played Nissan for profit.

The wonder is - and then not - considering the disingenuous motley group that is on the Nissan Exec Board - that it took so long for this to unravel.

-2 ( +0 / -2 )

So business menorwomen better be politicians as in the only friendly über?

0 ( +0 / -0 )

@semperfi

If Nissan leaves. ( and it probably will) That is the end of Renault.

First off. That is wishful thinking. Before Renault would ever go down FCA would step in and intervene and bail Renault out. Then there is the French government with unlimited resources. France isn’t broke by a long shot.

This is a solid fact.

Before all this broke out with Ghosn FCA let Renault know. We got your back if you ever needed it.

Who said Renault didn’t have the tech? LOL! Have you driven a Megane RS? No?

Here you are in my stock. Lacking in tech and preformance where?

http://www.version-g.co.jp/vcsMember/stockdetail/0008_602-1_37.html

Lacking in tech. Any Auto maker with its own F-1 team is leading in technology.

https://www.renaultsport.com/-Formule-1-330-.html

0 ( +1 / -1 )

slickdrifter: Then there is the French government with unlimited resources. France isn’t broke by a long shot.

You may be right about Macron - if push came to shove - bailing Renault out.

Renault is the French auto industry and there are thousands upon thousand of jobs on the line.

Re: the Megane RS.

Sure its a cute vehicle - in the line of Honda Civic R or Volkswagen Golf GTI

Certainly, with all the Nissan engineering technology they OUGHT to have something to show.

However, how many Renault's actually are on the road in North America?

I don't have a number, but in the Pacific North West one sees predominantly a mix American, lots of Japanese lots of Korean, some European ( many of the higher end) products .

-1 ( +0 / -1 )

There is a 3 km section of Kamakura-kaido south of Yokohama that includes a Renault dealership ( 1 of 2 in Yokohama), along with Peugeot, so there is a small French presence here. But that same 3km section includes 4-5 Toyota dealers, 3-4 Nissan (Red/ Blue stage), 2 Honda, 1 Subaru, 1 Mazda, 1 VW, 1 Jaguar, 1 BMW (currently being renewed, 1 Mitsubishi, 1 Jeep, 1 Maserati, 2 Mercedes Benz, 2 Suzuki, 2 Diahatsu, a few others I can't remember offhand, as well as 4-5 2nd hand car dealers. A lot of competition...

1 ( +1 / -0 )

@semperfi

However, how many Renault's actually are on the road in North America?

Have not a clue. Do not work the North American markets. But I will tell you this.

Every Renault that is sold here at Version Group- European Version. The buyer owned a Renault product before or only drove the Renault product from car 1.

That is some serious brand loyalty. Yeah Renault is not massive here in Japan. But is it ever steady business.

And from a quality stand point. It is not bad. But it is not great either. Like all imports there are strengths and weakness.

0 ( +0 / -0 )

Can you please share these pages.

In argumentation, citing sources are very important.

https://www.facebook.com/yahooactualites/posts/2143614249034524

https://www.facebook.com/LExpress/posts/10156391938536997

https://www.facebook.com/leparisien/posts/10157351306164063

https://www.facebook.com/CNEWSofficiel/posts/10157087793216977

0 ( +0 / -0 )

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