Mitsubishi says it will be tough to manage automotive alliance without Ghosn

20 November 2018 - 15:02 By Reuters
A Mitsubishi dealership
A Mitsubishi dealership
Image: Supplied

The alliance of carmakers Renault, Nissan and Mitsubishi will be difficult to manage without chairman Carlos Ghosn, who is facing financial misconduct allegations in Japan, Mitsubishi Motors Chief Executive Osamu Masuko said on Tuesday.

Arrested on Monday, Ghosn, the chairman of Nissan Motor Co will be fired from the board this week in a dramatic fall for a leader hailed for rescuing the Japanese carmaker from close to bankruptcy.

Ghosn is also chairman and chief executive of Nissan's French partner, Renault, and his departure will raise questions about the future of the alliance.

The board of Mitsubishi Motors is likely to meet next week to discuss Ghosn's departure, Masuko told reporters in Tokyo, the Japanese capital.

Ghosn, 64, personally shaped the alliance and had pledged to consolidate it with a deeper tie-up, before eventually stepping back from its operational leadership.

Renault owns 43.4 percent of Nissan, which owns 15 percent of Renault, with no voting rights in a partnership that began in 1999. Since 2016, Nissan has held a 34 percent controlling stake in its smaller Japanese rival, Mitsubishi.