Mitsubishi Motors Removes Ghosn as Chairman

Mitsubishi Motors Corp. has removed Carlos Ghosn as its chairman, one week after his arrest on suspicion of financial misconduct.

The board’s decision follows the same move on Nov. 22 by Nissan Motor Corp. Nissan, which holds a controlling 42% stake in MMC, says its internal investigation indicates Ghosn under-reported his compensation and improperly used company assets.

Last week Renault SA’s board decided to retain Ghosn as chairman and CEO of the French carmaker pending details about Nissan’s probe. But Renault appointed Chief Operating Officer Thierry Bollore as deputy CEO while Ghosn is “temporarily incapacitated.”

Ghosn also remains chairman of the Renault-Nissan-Mitsubishi alliance. The equity partnership, launched by Renault and Nissan in 1999, added MMC last year.

MMC’s board says retaining Ghosn as chairman would be a “reputational risk” after he lost the trust of Nissan. Ghosn and fellow Nissan board member Greg Kelly are being held in a Tokyo detention center but have not been charged with any crime.