Carlos Ghosn Resigns From Renault, French Minister

The embezzled chairman of the French carmaker Renault who is also under arrest in Japan on charges of financial misconduct as the chairman of Japanese car maker Nissan, Carlos Ghosn, has reportedly resigned from the company.

“Carlos Ghosn just resigned last night”, announced the French finance minister, Bruno Le Maire, to Bloomberg Television.

Ghosn was retained as the head of the French car maker even after he was arrested in Japan and after Japanese car maker Nissan and Mitsubishi both removed him as their chairman. Ghosn was the chairman and CEO of all of the three companies because of an alliance between them.

There was no comment from Renault even as the board of the company is set to meet on Thursday. The French government is the largest shareholder in Renault and owns 15 per cent of the company.

There are a number of allegations of financial misconduct against Ghosn which includes allegations that he had underreported the remuneration that he had got from Nissan for a long time till 2018 and had also been alleged of breach of trust with Nissan.

The initial alliance between Renault and Nissan was joined by Mitsubishi three years ago.

It could be months before the 64-year-old Ghosn could get out of jail because Japanese courts have denied him bail earlier this week. Ghosn, through his lawyers, has denied all the allegations brought against him.

The French car maker Renault is most likely to replace the role of Ghosn wiht two individuals and the names that are doping the rounds include selection of Jean-Dominique Senard, who runs Michelin, as the chairman, and the current deputy head in the company Thierry Bolloré for the position of chief executive.

Ever since the arrest of Ghosn, Renault has been run by Bolloré.

No signs of evidence of wrongdoing by Ghosn have so far been found by Renault and it has also so far found no evidence of any fraud in an investigation into executive pay.

The alliance between the carmakers is desired the French government according to Bloomberg. The relation between Nissan and Renault has been under pressure since the arrest of Ghosn.

“I am sure the alliance will stay,” Bloomberg quoted Bruno Le Maire as saying.

Ghosn was quite popular in Japan because he had been credited of bringing out Nissan from a near bankruptcy about a decade ago and then rejuvenating the sale of the company.

Nissan wants to discuss new board members and would be holding an extraordinary general meeting in April, the Japanese car maker has said.

(Adapted from BBC.com)

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