Mitsubishi Fires Chairman due to Financial Misconduct | Financial Buzz

Mitsubishi Fires Chairman due to Financial Misconduct

Mitsubishi Motors Corp (NASDAQ: MSBHY) confirmed on Monday that Carlos Ghosn was fired from his role as chairman after his arrest for alleged financial misconduct from Nissan Motor Co (OTC: NSANY) last week. Nissan Motor is in partnership with Mitsubishi Motors and currently holds 34 percent stake in Mitsubishi Motors with two executives on board. This removal resulted from an unanimous vote from the Company’s board. In 2016, Ghosn was praised for helping recover from the cheating scandal Mitsubishi suffered from. CEO Osamu Masuko will become the temporary chairman for the Japanese automaker.

Nissan removed Ghosn last Thursday at a board meeting after discovering that he had reported understated income and used Company assets for personal use. Public broadcaster NHK reported that Ghosn denied these allegations on Sunday.

Mitsusubo will investigate and probe into this situation and will release its findings in a board meeting in December.

Amidst the distracting news of Ghosn, CEO Masuko told reporters after a board meeting that Mitsubishi Motors have intentions to focus on regions and technology where competitiveness can be retained. He mentioned that cooperation among alliance member is a must as new technology like automated and inter-connected vehicles are on the rise.

The automakers have insisted that business and operations are not significantly impacted. However, the launch of Nissan’s high-performance Leaf electric car have been delayed following the Ghosn’s incident. A Nissan spokesman said that this delay is “to ensure that this important product unveiling could receive the coverage it merits.