'He became really pushy.' Nissan executives plotted to remove Carlos Ghosn, their boss, because they feared he was seeking to combine with Renault.
By Nick Kostov in Paris and Sean McLain in Tokyo March 28, 2019 10:43 a.m. ET Carlos Ghosn, onetime lynchpin of the Renault-Nissan alliance, was released on bail of nearly $9 million on March 6 after 108 days in custody. Photo: Takaaki Iwabu/Bloomberg News After Carlos Ghosn was arrested, jailed and stripped of his titles at Renault-Nissan, two of the alliance’s top executives met in Amsterdam to clear the air.
Two Nissan executives, determined to halt further corporate integration, instigated a probe of Mr. Ghosn, chasing longtime rumors of wrongdoing, until they found evidence of alleged financial crimes to give prosecutors, according to the documents and people familiar with the investigation. Their primary motivation was to protect Nissan, which translates to “Japan industry,” said people familiar with their views, mirroring how countries around the world still protect their national champions.
WSJ's Peter Landers explains what's next for Mr. Ghosn. Photo: Kyodo News via AP Merger discussions are back to square one, just as the Nissan executives who plotted Mr. Ghosn’s fall had hoped for. Renault’s share price has dropped more than 9% since his arrest, and Nissan’s stock is down more than 8%, despite a recent rally.
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Mr. Ghosn agreed to a modest salary cut and a commitment to “take decisive steps to make the alliance irreversible,” said a Renault news release on Feb. 15, 2018. The government of French President Emmanuel Macron, which had been pressing for closer integration between the two companies, voted for Mr. Ghosn’s renewal.
Mr. Ghosn, who served as chief executive of both companies for more than a decade, was known as a defender of each company’s autonomy, said people who know him. The Japanese ministry drafted a memorandum of understanding for the French government, effectively codifying demands delivered by Mr. Nada. Essentially, France would have to promise to respect Nissan’s independence and funnel any communications through the Japanese government.
Mr. Nada had served Mr. Ghosn for years and had observed odd financial dealings involving a Nissan-affiliated entity in the Netherlands called Zi-A Capital, according to Nissan people familiar with the investigation. It was supposed to invest in startup companies, said people familiar with its creation and company filings.
Over the summer, Mr. Saikawa worked behind the scenes on a plan to split up Nissan, sending head-office work to the alliance, while leaving an “operational entity” in Japan, according to a document Mr. Saikawa sent to Mr. Ghosn. It would be better to establish a new structure for the alliance during the year ended March 2020, rather than wait any longer, Mr. Saikawa wrote, adding that he was working to make a “scenario acceptable for both sides,” as Mr. Ghosn had asked him.
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