Nissan boss Carlos Ghosn arrested

Nissan chairman Carlos Ghosn has been arrested over claims that he allegedly under-reported his income and used corporate assets for his personal gain, the Japanese car-maker has confirmed.

Accused of “significant acts of misconduct”, Ghosn will now be sacked on Thursday after an emergency board meeting with high-rank Nissan executives.

Nissan said it was unable to give further details on the offences Ghosn is accused of but speaking at a press conference Nissan chief executive Hiroto Saikawa said: “I feel despair, indignation and resentment.”

Neither have Japanese prosecutors publicly commented on the arrest of the Nissan chairman.

Ghosn allegations were reportedly triggered by a whistle-blower and, following an internal investigation that last several months, Nissan called in the authorities.

Speculation within the Japanese media suggest that Ghosn under-reported his earnings by around 5bn yen ($A61 million) over a period of five years.

As well as Ghosn’s arrest, Nissan said it also intends to terminate senior exec Greg Kelly, a close aid to the Nissan chair.

Kelly, who was also arrested overnight, is thought to face similar charges to his boss.

As well as being chairman of Nissan, Ghosn is also chairman and chief executive of Renault and chairman of Mitsubishi and chair of the Renault-Nissan-Mitsubishi Motors strategic alliance.

Following his arrest, Renault shares slumped by an incredible 13 per cent.

Ghosn, who has almost iconic status in Japan, has been one of the world leaders in the motor industry for more than two decades.

Over that period, he has been credited as the saviour of both Renault and Nissan, plucking the latter Japanese car maker from the brink of bankruptcy and dragging it back to profitability.

Last year, in a bid to further reduce the stratospheric cost of R&D, Ghosn was the architect of adding Mitsubishi to the alliance, in the process creating one of the world’s biggest car makers.

Earning the nickname ‘cost-killer’, Ghosn was ruthless in his pursuit for profit margin, slashing jobs and closing factories, following Renault buying a controlling stake in Nissan back in 1999.

The new scandal comes just months after Renault shareholders narrowly approved a €7.4 million ($A11.6 million) pay package.

It’s thought Ghosn’s departure will create a huge power vacuum with the Renault-Nissan-Mitsubishi alliance.

Addressing these concerns French president, Emmanuel Macron, said he would work with the car-making giant to preserve the stability of Renault as France owns a 15 per cent stake in the French car-maker.