Nissan board votes to remove Carlos Ghosn as chairman

Nissan Motor’s board voted on Thursday to oust Carlos Ghosn from his post as chairman after his arrest in Japan this week, public broadcaster NHK reported, marking the surprising downfall of the executive once praised as the savior of the Japanese automaker.

The elimination of Ghosn clouds the direction of the Renault-Nissan alliance, which he had personally shaped and vowed to consolidate with a deeper tie-up regardless of reservations at Nissan. Ghosn is also Renault’s chairman and chief executive.

The board as well voted to remove Greg Kelly from his position as representative director, the Nikkei newspaper noted.

Nissan stated on Monday an internal investigation caused by a tip-off from an informant had showed that Ghosn engaged in misconduct consisting of personal use of company money and under-reporting of his earnings for years.

Tokyo prosecutors have alleged Ghosn and Kelly of financial misconduct and they are in custody. Ghosn and Kelly have not discussed the accusations.

A Nissan spokesman refused to comment.