Nissan chairman and Renault chief executive Carlos Ghosn has been arrested in Tokyo according to reports for allegedly understating his income with the automotive group.
Ghosn is suspected to have under-reported his pay package in the company's financial reports for the purpose of dissimulating his true compensation.
In a statement, Nissan said that "over many years" Ghosn and another senior executive, Greg Kelly, had been "reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation”.
But Ghosn's misdeeds apparently extend beyond a reporting issue.
"Numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed," added Nissan.
The market value of both automotive companies took a hit at the open this morning in Europe, with Nissan losing 12% on the Frankfurt stock exchange and Renault falling by approximately the same amount in Paris.
The Brazilian-Lebanese executive, better known as "the Cost Killer" in the automobile industry, has been at the helm of Renault since 2005.
In 2016, Ghosn approved Renault's return to Formula 1 as a works teams for 2017, and Renault Sport's five-year investment plan destined to bring the manufacturer back to the front of the grid.
The 64-year-old's likely ousting from the Nissan-Renault group will inevitably lead to questions about Renault's commitment to F1 and the future of the French outfit.
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