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Nissan officials answer to angry shareholders on red ink, Ghosn scandal

Smoke engulfs the Nissan logo as workers burn tires during a protest in Barcelona, Spain, where the automaker is closing its plant, costing 3,000 direct jobs. (AP/Emilio Morenatti)     TOKYO — Nissan Chief Executive Makoto Uchida told shareholders Monday he is giving up half his pay after the Japanese automaker sank into the red amid plunging sales and plant closures in Spain and Indonesia. Uchida apologized for the poor results and promised a recovery by 2023, driven by cost cuts and new models showcasing electric-car and automated-driving technology. “We will tackle these challenges without compromise,” he said at a live-streamed meeting. “I promise to bring Nissan back on a growth track.” Executives for the company also blasted suggestions in media reports of a conspiracy within the company to oust Carlos Ghosn. The former chairman's 2018 arrest in Japan on financial misconduct charges has led to much speculation that the move was orchestrated by Nissan executives who opposed closer ties with partner Renault. “I know that in books and the media there has been talk about a conspiracy, but there are no facts whatsoever to support this,” Motoo Nagai, chairman of NissanÂ’s auditing committee, told shareholders at the companyÂ’s annual general meeting. Responding to demands from a shareholder to address the speculation, Nagai argued that the investigation into Ghosn was conducted both internally and by outside law firms. All the worldÂ’s automakers have been hurt by nose-diving sales caused by the coronavirus pandemic. But the problems are especially serious for Nissan, which already was fighting to salvage its reputation after the financial misconduct scandal of former star executive Ghosn. Nissan, based in Yokohama, Japan, sank into its first annual loss in 11 years, reporting a 671.2 billion yen ($6.3 billion) loss for the fiscal year that ended in March. It has not given a projection for this fiscal year, citing uncertainties over the virus outbreak. One angry shareholder got up and said executives should give up more of their pay since investors were getting zero dividends. Another said Nissan needed to do more to strengthen its governance, arguing things have been getting worse, not better, since the departure of Ghosn.

Ghosn flight prompts renewed focus on Japan's strict justice system

TOKYO — Carlos Ghosn's daring flight from Japan, where he was awaiting trial on charges of financial wrongdoing, has revived global criticism of the nation's "hostage justice," but in Japan is prompting talk of reversing more lenient curbs on defendants. The ousted boss of Japan's Nissan and France's Renault fled to Lebanon, saying on Tuesday that he had "escaped injustice" and would "no longer be held hostage by a rigged Japanese justice system." Ghosn was first arrested in November 2018 when his private jet landed in Tokyo and kept in jail for more than 100 days as prosecutors added more charges, all of which he has denied. He was released on $9 million bail in March — only to be arrested and bailed again the following month. He was facing four charges, including underreporting his Nissan salary and transferring personal financial losses to his employer's books while he ran Japan's No. 2 automaker. His apparent escape from Japan's legal system — Tokyo and Lebanon don't have an extradition treaty — will likely halt or even reverse a trend of recent years toward granting bail in more cases, said Colin Jones, a law professor at Doshisha Law School in Kyoto. “I would expect it to be more difficult for foreign defendants to get bail,” Jones said. In Japan, suspects who deny the charges against them are often detained for long periods and subject to intense questioning without a lawyer present, a system critics call "hostage justice." Japanese civil rights groups and the main bar lawyers association have long criticized a system that convicts 99.9% of criminal defendants. They say it gives too much power to prosecutors, who can detain suspects for long periods before indictment, and relies too much on confessions, some later found to have been forced and false. Ghosn's escape is clearly a shock to Japan's legal establishment. "This case raises the extremely serious issue of whether it's all right to continue the trend toward bail leniency," said former prosecutor Yasuyuki Takai. "The legal profession and lawmakers need to quickly consider new legal measures or a system to prevent such escapes," Takai, who was formerly with the special investigation unit of the prosecutor's office, told public broadcaster NHK.

Mitsubishi headed back to Rebelle Rally with new Outlander, retro wrap

Just like Ford, Mitsubishi will again compete in the 2021 Rebelle Rally. This year, the competition car will be the redesigned 2022 Mitsubishi Outlander. However, it takes its color scheme from a far older Mitsubishi racing vehicle – one that's a perfect tribute for the all-women Rebelle Rally. The Outlander's flashy red, gold and black wrap is inspired by a 2001 Mitsubishi Pajero entered in that year's Paris-Dakar Rally. The Pajero won thanks to driver Jutta Kleinschmidt, the first (and so far only) woman ever to win the grueling off-road endurance race. So creating a tribute of her Pajero for an all-women off-road rally seems like a superb way to celebrate the 20th anniversary of her victory. Mitsubishi hasn't given many more details about the Outlander, but based on its past entries, it should be mostly stock. It will also likely compete in the X-Cross class for crossovers. This year's Rebelle Rally will run from October 7 to October 16. The route is estimated at around 2,000 miles across California and Nevada. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.