Carlos Ghosn ousted as chairman of Mitsubishi Motors

Mitsubishi CEO Osamu Masuko takes over as temporary chairman.

Published on Nov 26, 2018 06:00:00 PM

5,595 Views

Mitsubishi Motors, the third partner in the Renault-Nissan-Mitsubishi alliance, announced today that the company’s board has ousted Carlos Ghosn as chairman of the company. Company CEO Osamu Masuko has stepped in as temporary chairman.

The dismissal from Mitsubishi follows in the footsteps of Nissan, who on Thursday removed Ghosn as chairman following his arrest in Japan over financial misconduct.

As per reports, Ghosn’s ousting from Mitsubishi has come at a time of discontent between the partners over Renault’s role in the alliance, which had formed back in 1999 and expanded in 2016 to include Mitsubishi. Nissan is currently a junior partner in the alliance. Renault holds a 43 percent stake in Nissan, which holds a 15 percent non-voting stake in the former, despite the Japanese brand’s rapid growth after it was saved from bankruptcy in the 90s.

In an official statement, Mitsubishi said that as Ghosn had lost the confidence of Nissan, and it was currently difficult for him to fulfil his duties, they have decided to remove him as chairman. Nissan holds a 34 percent share in Mitsubishi, along with having two executives on the company’s board.

Mitsubishi has said that they will be launching their own investigation into possible wrongdoings by Ghosn and reveal its findings next month.

Later this week, top alliance executives from all three alliance members are set to meet in Amsterdam, Netherlands, in a bid to shield the alliance from the fallout from Ghosn’s arrest and a possible power struggle between Renault and Nissan.

Following today’s decision, Ghosn now remains chairman of only the French brand, Renault, who have chosen to stand by his appointment and have asked Nissan to share the findings of the Japanese automaker’s internal investigation

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