Ghosn Cites 'Back-Stabbing' for Fall -- WSJ
April 10 2019 - 3:02AM
Dow Jones News
By Sean McLain
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (April 10, 2019).
TOKYO -- Carlos Ghosn blamed backstabbing Nissan Motor Co.
colleagues for the charges he now faces, saying they feared a
merger with partner Renault SA.
Nissan executives were "playing a very dirty game," Mr. Ghosn
said in a video released by his lawyer. "This is about a plot. This
is about a conspiracy. This is about backstabbing." He said he is
innocent of the charges.
Mr. Ghosn, the former chairman of Nissan and Renault, had
planned to hold a news conference this week, but was prevented from
doing so after prosecutors arrested him again on April 4.
Nissan responded to the video by reiterating its view that Mr.
Ghosn's own actions led to his arrest. "Aside from any criminal
matters, Nissan's internal investigation has uncovered substantial
evidence of blatantly unethical conduct" by Mr. Ghosn, a spokesman
said.
Mr. Ghosn said Nissan executives had been concerned they could
lose their jobs and the Japanese auto maker could lose its
independence as he pursued closer ties with Renault, which owns
43.4% of Nissan. The Wall Street Journal previously reported that
Mr. Ghosn had been planning to replace Nissan Chief Executive
Hiroto Saikawa.
Mr. Ghosn said Nissan executives worked against him "because
there was first a fear that the next step of the alliance -- in
terms of convergence, in terms of moving towards a merger -- would,
in a certain way, threaten some people."
The 7 1/2 minute video was recorded the day before Mr. Ghosn's
latest arrest. It originally contained a portion in which Mr. Ghosn
named the people he believed were part of a conspiracy, but his
legal team decided with Mr. Ghosn's approval to cut it, said
Junichiro Hironaka, his lead lawyer.
Mr. Ghosn said he has been the "fiercest defender of the
autonomy of Nissan," but believed its independence rested on its
performance, which he described as "not good."
In its most recent earnings announcement in February, Nissan
lowered its full-year guidance for sales volume, revenue and
profit, as sales in Europe and the U.S. sputtered. The U.S. decline
was exacerbated by an attempt by Nissan to unwind financial
incentives on its cars.
Asked about Mr. Ghosn's assertions, a Nissan spokesman pointed
to past statements by Nissan executives. The CEO, Mr. Saikawa, has
blamed Mr. Ghosn's efforts to lift market share for an unhealthy
growth in incentives on the company's cars.
In arresting Mr. Ghosn again, prosecutors cited suspicions he
personally received $5 million of a total $15 million Nissan sent
to an overseas distributor, which people familiar with Nissan's
investigation have identified as Suhail Bahwan Automobiles of Oman.
A representative of Mr. Ghosn has said neither he nor his family
personally benefited from any payments by Nissan. The Omani company
hasn't responded to requests for comment.
In the video message released Tuesday, Mr. Ghosn said he
believed he would be acquitted if he received a fair trial. But he
said his lawyers hadn't filled him with confidence that he would
get one.
The latest arrest ended a monthlong period in which Mr. Ghosn
was out on bail of nearly $9 million. He previously spent 108 days
in jail after his surprise arrest in Japan on Nov. 19.
Mr. Ghosn's lawyer said the defense team plans to appeal his
latest detention to Japan's Supreme Court, arguing that courts had
already decided Mr. Ghosn wasn't a flight risk and there wasn't
concern he would destroy evidence.
After Mr. Ghosn's initial arrest, he spent weeks undergoing
daily questioning from prosecutors without the presence of his
lawyers. "We believe that using this method, where any means
necessary is used to find Mr. Ghosn guilty, is against the spirit
of due process and a fair trial," said Mr. Hironaka, the lead
defense lawyer. Mr. Ghosn has been advised not to speak to
prosecutors this time, Mr. Hironaka said.
Jean-Yves Le Borgne, a Paris-based lawyer for Mr. Ghosn, told
French TV channel TF1 that his client should be tried in France to
ensure he has "the right to impartial justice that respects human
rights and the presumption of innocence."
Nick Kostov in Paris contributed to this article.
Write to Sean McLain at sean.mclain@wsj.com
(END) Dow Jones Newswires
April 10, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Mitsubishi Motors (PK) (USOTC:MMTOY)
Historical Stock Chart
From Sep 2024 to Oct 2024
Mitsubishi Motors (PK) (USOTC:MMTOY)
Historical Stock Chart
From Oct 2023 to Oct 2024