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William Maley

Nissan News: Arrest of Carlos Ghosn Caused Nissan To Cancel Debut of Long-Range Leaf

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Nissan's showing at last week's LA Auto Show was a bit underwhelming with mid-cycle refreshes of the Maxima and Murano. But Nissan had bigger plans for LA. According to the Wall Street Journal, the Japanese automaker was planning to show a longer-range version of the Leaf EV. The model would increase range from 151 miles to 225 miles via a larger battery pack. The Journal reports that Nissan had rented space in the Japanese American National Museum for the media unveiling and hired Hollywood actress Margot Robbie to introduce the model.

But the reveal was postponed. 

“The official announcement regarding details of the 2019 Nissan Leaf with additional performance capabilities is postponed to a later date,” Nissan said in a statement.

A spokesman went on to say that the reveal was delayed “to ensure that this important product unveiling could receive the coverage it merits.”

Emphasis mine.

Currently, the coverage at Nissan deals with the arrest of former Chairman and CEO Carlos Ghosn over alleged misuse of company funds and understating his income. This would have overshadowed the introduction of the updated Leaf.

It is unclear when Nissan is planning to show off the revised Leaf, but it may take awhile. This week alone saw new allegations come against Ghosn for having a salary above a cap set by shareholders and that he passed on personal losses totaling more than a billion yen ($8.8 million) from derivative trading on to the company. Over at Nissan, the company has pushed back a decision on nominating a successor to Ghosn as chairman. It is expected that a recommendation made by a  three-member panel of external Nissan directors will present their choice to the board later this month.

Source: Wall Street Journal (Subscription Required)


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What is it about people who already make many millions of dollars that they then have the desire to risk it all to nefariously make more.

 

Shame about the long-range leaf... maybe we'll see it in Chicago?

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I understand the delay in announcement, but I had also read and I think it was in Bloomberg where the release date of the long range leaf was still on track, just the announcement to the press and at what show was now delayed. Will have to find that story.

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43 minutes ago, Drew Dowdell said:

What is it about people who already make many millions of dollars that they then have the desire to risk it all to nefariously make more.

 

Shame about the long-range leaf... maybe we'll see it in Chicago?

I always think the same exact thing. I just don't understand it. 

What did he do wrong here? I don't remember reading anything on it other than a Nissan executive being arrested or whatever. 

I guess I should say, what was he spending the company money on? 

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1 minute ago, ccap41 said:

I always think the same exact thing. I just don't understand it. 

What did he do wrong here? I don't remember reading anything on it other than a Nissan executive being arrested or whatever. 

Shady things like charging the company for personal expenses to the tune of millions. Backdoor arrangements to get paid more than the salary cap the board set. Apparently not declaring his proper and full income in Japan to their taxing authority.

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Just now, Drew Dowdell said:

Shady things like charging the company for personal expenses to the tune of millions. Backdoor arrangements to get paid more than the salary cap the board set. Apparently not declaring his proper and full income in Japan to their taxing authority.

Jesus, I just don't get it. It isn't like he's "only" making 100k a year(only being for a exec). Making the exact amount they probably were paying is astronomical amount so why do you need to steal more? If you're that dissatisfied, ask for raises(I know it's a different situation being an executive) or look for a job elsewhere where you feel like you'll be valued better. 

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3 minutes ago, ccap41 said:

Jesus, I just don't get it. It isn't like he's "only" making 100k a year(only being for a exec). Making the exact amount they probably were paying is astronomical amount so why do you need to steal more? If you're that dissatisfied, ask for raises(I know it's a different situation being an executive) or look for a job elsewhere where you feel like you'll be valued better. 

Sounds like part of his con was using company funds to decorate/maintain 5 houses/apartments in 5 different countries also.  And reporting only $44 mill of income in Japan when it was really $88 mil for 2016 or something like that. 

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4 minutes ago, ccap41 said:

Jesus, I just don't get it. It isn't like he's "only" making 100k a year(only being for a exec). Making the exact amount they probably were paying is astronomical amount so why do you need to steal more? If you're that dissatisfied, ask for raises(I know it's a different situation being an executive) or look for a job elsewhere where you feel like you'll be valued better. 

He was the CEO of three companies simultaneously... one would think the pay from that would be enough.  I mean, the nicest car he can drive is going to be a QX80, but still, that's not so bad.

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It does make me wonder... if it was allowed by the company but "if you're caught it's all you" to reduce their income and with that if others were doing the same. 

I wouldn't expect it but you never know.

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17 minutes ago, Robert Hall said:

Sounds like part of his con was using company funds to decorate/maintain 5 houses/apartments in 5 different countries also.  And reporting only $44 mill of income in Japan when it was really $88 mil for 2016 or something like that. 

So then 5 different woman, one in every port as they say? ;) 😛 

Totally agree, one has to wonder what the hell is wrong with someone that makes more money in a year then 99% of the rest of society and he still needs to steal? 🤷‍♂️

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Wow.  Product development is dependent on one man's approval? That is really stupid.  Hopefully the new guy will actually fix the product development issues and get the newer Leaf out to market.

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Nissan was asked about it by auditors in 2013.  The auditors were told everything was copacetic.  It all reeks of a setup.  And the announcement wasn't anything important anyway, the arrest is just an excuse.  Who cares about the Nissan Leaf anyhow?

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    • By William Maley
      Three weeks after he was arrested in a Tokyo airport, Carlos Ghosn will soon be officially charged. Bloomberg has learned from sources that Ghosn will appear in Japanese court as soon as Monday to be indicted on various financial charges. Japanese prosecutors have to either charge Ghosn or arrest him new charges if they don't want to release him.
      Sources also tell Bloomberg that prosecutors are planning to bring new charges against Ghosn. While not public, sources believe it may relate to Ghosn under-reporting his income for the past three fiscal years. 
      The Tokyo prosecutors’ office declined to comment.
      Meanwhile, Nissan is facing its own set of issues from Ghosn's arrest. The Nikkei Asian Review is reporting that prosecutors will file charges against the company for making false statements on securities reports. This is due to Ghosn and Greg Kelly, a former member of Nissan's board of directors for under-reporting salaries in five annual reports that go through the fiscal year that ended in March 2015. In Japan, a company can be held accountable for employees misstating financial information and not stopping it - hence why Nissan is getting charged.
      A source told Automotive News that Nissan had been "preparing for the possibility of charges" since allegations against the two men came out last month.
      It appears that the relationship between Nissan and Renault is taking hit. Unlike Nissan and Mitsubishi which have outed Ghosn as chairman, Renault is keeping him as chairman and CEO for the time being. The French automaker has named an interim CEO and the duties of chairman are being performed by a director.
      Why hasn't Renault followed Nissan and Mitsubishi? According to a Renault spokesman, Nissan hasn't provided evidence that the board has asked for in their internal probe. He declined to comment any further. Sources at the automaker give a clearer view. Executives at Renault are quite suspicious of Nissan’s motives with Ghosn. The French automaker has asked for proof from Nissan concerning the allegations against Ghosn. Nissan offered a presentation that summarized the evidence, but Renault passed, asking for the "presence of lawyers and the full report on the allegations."
      Renault has good reason to be suspicious of Nissan considering the odd arrangement of their alliance. Renault is the largest shareholder in Nissan and has voting rights. But Nissan doesn't have any voting rights at Renault due in part to the French government being the lead shareholder. Nissan has been trying to balance this relationship, "but its demands have been stonewalled by Renault and the French state." It should also be noted that Ghosn had been pushing for a possible merger between the two - something Renault wanted but Nissan didn't.
      Source: Automotive News (Subscription Required) Bloomberg, Nikkei Asian Review

      View full article
    • By William Maley
      Three weeks after he was arrested in a Tokyo airport, Carlos Ghosn will soon be officially charged. Bloomberg has learned from sources that Ghosn will appear in Japanese court as soon as Monday to be indicted on various financial charges. Japanese prosecutors have to either charge Ghosn or arrest him new charges if they don't want to release him.
      Sources also tell Bloomberg that prosecutors are planning to bring new charges against Ghosn. While not public, sources believe it may relate to Ghosn under-reporting his income for the past three fiscal years. 
      The Tokyo prosecutors’ office declined to comment.
      Meanwhile, Nissan is facing its own set of issues from Ghosn's arrest. The Nikkei Asian Review is reporting that prosecutors will file charges against the company for making false statements on securities reports. This is due to Ghosn and Greg Kelly, a former member of Nissan's board of directors for under-reporting salaries in five annual reports that go through the fiscal year that ended in March 2015. In Japan, a company can be held accountable for employees misstating financial information and not stopping it - hence why Nissan is getting charged.
      A source told Automotive News that Nissan had been "preparing for the possibility of charges" since allegations against the two men came out last month.
      It appears that the relationship between Nissan and Renault is taking hit. Unlike Nissan and Mitsubishi which have outed Ghosn as chairman, Renault is keeping him as chairman and CEO for the time being. The French automaker has named an interim CEO and the duties of chairman are being performed by a director.
      Why hasn't Renault followed Nissan and Mitsubishi? According to a Renault spokesman, Nissan hasn't provided evidence that the board has asked for in their internal probe. He declined to comment any further. Sources at the automaker give a clearer view. Executives at Renault are quite suspicious of Nissan’s motives with Ghosn. The French automaker has asked for proof from Nissan concerning the allegations against Ghosn. Nissan offered a presentation that summarized the evidence, but Renault passed, asking for the "presence of lawyers and the full report on the allegations."
      Renault has good reason to be suspicious of Nissan considering the odd arrangement of their alliance. Renault is the largest shareholder in Nissan and has voting rights. But Nissan doesn't have any voting rights at Renault due in part to the French government being the lead shareholder. Nissan has been trying to balance this relationship, "but its demands have been stonewalled by Renault and the French state." It should also be noted that Ghosn had been pushing for a possible merger between the two - something Renault wanted but Nissan didn't.
      Source: Automotive News (Subscription Required) Bloomberg, Nikkei Asian Review
    • By William Maley
      Nissan's showing at last week's LA Auto Show was a bit underwhelming with mid-cycle refreshes of the Maxima and Murano. But Nissan had bigger plans for LA. According to the Wall Street Journal, the Japanese automaker was planning to show a longer-range version of the Leaf EV. The model would increase range from 151 miles to 225 miles via a larger battery pack. The Journal reports that Nissan had rented space in the Japanese American National Museum for the media unveiling and hired Hollywood actress Margot Robbie to introduce the model.
      But the reveal was postponed. 
      “The official announcement regarding details of the 2019 Nissan Leaf with additional performance capabilities is postponed to a later date,” Nissan said in a statement.
      A spokesman went on to say that the reveal was delayed “to ensure that this important product unveiling could receive the coverage it merits.”
      Emphasis mine.
      Currently, the coverage at Nissan deals with the arrest of former Chairman and CEO Carlos Ghosn over alleged misuse of company funds and understating his income. This would have overshadowed the introduction of the updated Leaf.
      It is unclear when Nissan is planning to show off the revised Leaf, but it may take awhile. This week alone saw new allegations come against Ghosn for having a salary above a cap set by shareholders and that he passed on personal losses totaling more than a billion yen ($8.8 million) from derivative trading on to the company. Over at Nissan, the company has pushed back a decision on nominating a successor to Ghosn as chairman. It is expected that a recommendation made by a  three-member panel of external Nissan directors will present their choice to the board later this month.
      Source: Wall Street Journal (Subscription Required)
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