Yuri Kageyama, The Associated Press
Sunday was published, November 25, 2018 at 23:35 EST
TOKYO – The Mitsubishi Motors management meets on Monday to decide whether to displace Carlos Ghosn as the president of a Japanese car company that is affiliated with Renault-Nissan.
Ghosn was arrested a week ago on charges of underestimating his income by millions of dollars for five years. Nissan Motor Co., who has already spoken as its chairman, said that in the internal investigation Ghosn had used the company's money and assets.
Mitsubishi Motors Corp. he said seven board members from eight members would meet later in the day.
Ghosn's arrest on November 19 was a staggering downturn for executives who dominated the Japanese automotive industry for two decades and headed the Nissan alliance with the French Renault SA.
Ghosn also led Mitsubishi to join the alliance. Nissan took a 34 percent stake in Mitsubishi in 2016.
Tokyo prosecutors accused Ghosna of underestimating revenues by 5 billion yen (US $ 44 million) in five years.
You can not yet get a comment from Ghosn on the accusations. Japanese media, citing unidentified sources, reported that Ghosn and Greg Kelly, who was arrested on charges of cooperation with Ghosne, confirm their innocence.
Neither Ghosn nor Kelly were accused.
Under Japanese law, a suspect may be detained for up to three weeks for a suspicious charge without paying any fees.
Renault retained Ghosna as the general manager. It is expected that Mitsubishi, considering the makeup on the board, will not oppose Ghoss.
The board consists of Ghosna, general manager of Mitsubishi Motors Osamu Masuko, two people from Nissan, two of the Mitsubishi group companies and two outsiders – a writer and researcher.
The future of the Renault and Nissan alliance is growing more and more alarming. The future of the alliance with Mitsubishi, which is a newer one, may be even more uncertain.
Alliances often benefit car manufacturers because they use technology, car parts, and suppliers and sales networks. Sales volume has a tendency to reduce costs.
Analysts say such sharing is becoming more and more important in recent years because companies are developing electric vehicles, network connectivity and artificial intelligence for cars.