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Ghosn out at Nissan, still in at Renault, still in jail in Tokyo and facing more charges

When the corporate jet carrying Renault- Nissan- Mitsubishi CEO Carlos Ghosn landed at Tokyo Haneda airport on November 19, Japanese authorities had already taken position on the tarmac, waiting for him. Police and authorities representing Tokyo prosecutor's office boarded the plane to query Ghosn about financial improprieties, and ended up taking Nissan's chairman and CEO into custody. A few days later, on November 22, Nissan's board voted to remove Ghosn from both positions for what it classified as "significant acts of misconduct." The charges include understating his income in filings to the Tokyo Stock Exchange by at least $44 million, and misusing company funds. Japanese police arrested Greg Kelly as well, the high-ranking Nissan exec said to have assisted Ghosn in the subterfuge. Ghosn and Kelly remain on Nissan's board until a shareholder vote is held to decide those positions. Kelly was Nissan's first American director, and the carmaker's former head of human resources. In France, Renault's board voted to keep Ghosn in his positions, and has requested details from Nissan about the alleged improprieties. The board put Thierry Bollore in the role of deputy CEO with all of Ghosn's powers while Ghosn is "incapacitated," and lead independent director Philippe Lagayette will act as temporary chairman. Nissan has since told Renault that it is investigating financial malfeasance at RNBV, the Amsterdam-based joint-venture company that oversees the alliance. Mitsubishi has watched from afar, only saying it will perform its own investigation, and could remove Ghosn. Tokyo police can hold a suspect for 72 hours for initial questioning without charges. With the deadline looming, Tokyo prosecutors asked the court for, and were granted, a ten-day extension. If they choose, prosecutors can request another ten-day extension. Within 23 days, however, prosecutors either need to charge Ghosn and Kelly, or release them. There are several charges that acquire more details by the day. The most serious accusation is that Ghosn understated his pay from 2011 to 2015 by half, claiming roughly $44 million in remuneration when he actually received around $88 million. Over the weekend, it came out that Japanese prosecutors could be working on new charges of Ghosn under-reporting his salary since 2015 by $27 million. A Japanese newspaper said Ghosn told Kelly in an email to lie on the financial statements.

Infiniti's new VC-T changes the rules of small turbocharged engines

The upcoming Infiniti QX50 crossover does not get our pulse racing, no matter how shapely the QX Sport Inspiration concept that previews it may be. No midsize SUV does, to be fair. But it has something special under the hood – the world's first production variable-compression-ratio engine. That means the QX50's 2.0-liter turbo four, which makes 268 horsepower and 288 pound-feet of torque, will have up to 27 percent better fuel economy. Here's how it works. The trend of moving to smaller, turbocharged engines carries with it one big falsehood. Under low load when the turbo isn't needed, these engines are less efficient than an equivalent engine without a turbo because of the low compression ratio the turbo requires. That is, if you never need the extra power, you're wasting fuel. Turbocharged (and supercharged) engines use a lower compression ratio to prevent detonation. When you force extra air in a cylinder and mix it with fuel, it's more likely to prematurely go boom. Lowering the compression ratio prevents this problem, but it's less efficient. Infiniti's VC-T promises the best of both worlds, with a compression ratio that ranges from 8.0:1 for high-power turbo needs to a 14.0:1 ratio for fuel-sipping efficiency. At its heart the VC-T engine is a simple idea, but it's complicated to explain. Consider yourself warned. The photo below from Infiniti serves as a good visual overview. For the truly nerdy, this patent application covers the mechanical concept. Instead of having the pistons connected to the crankshaft, Infiniti's engine has a pivot arm with a connection on each end. One end connects to the piston, the other connects to a second lower shaft, which is controlled by an actuator arm. At any given time the engine's pistons move up and down according to the lobes on the crankshaft. But the actuator arm can change the angle of the pivot arm up and down. That is, the pistons still move in the same motion with the same stroke, but phase the entire stroke up or down. Move the pivot up and there's less room at the top, which means a higher compression ratio. Move the pivot down and the compression ratio goes down, too. As an added bonus, the lower shaft eliminates the need for counter-rotating balance shafts. Infiniti says this system works constantly and can vary the compression ratio to any number between 8:1 and 14:1. It also uses electronic variable valve timing on the intake valves to switch into Atkinson-cycle combustion for greater efficiency.

A realistic approach to fixing Mitsubishi

There are going to be a lot of words written about what Nissan needs to do with Mitsubishi in the coming months and years in the interest of turning the brand around. After Nissan's purchase of a controlling stake in the diamond star brand, there's been more interest in Mitsubishi thanks to the potential of platform sharing and plenty of cash from Nissan-Renault to get the juices flowing again. But, while some have been doing their best to advocate for the return of the 3000GT, Evolution, and even the Starion - Many of these posts forget the reality of the market we live in today. As much as we like to look back fondly at the sports coupes of the '90s, a byproduct of the insane cash flows all the Japanese manufacturers had at the time, the reality of today puts a much greater emphasis on what is most-boring; Crossover SUVs, alongside mid-size and compact sedans. We do need to ask a fundamental question, how much Mitsubishi is enough to be able to continue to call the cars Mitsubishis? Aside from slight product revisions and reconfigurations, Mitsubishi (at least in North America) has been largely dependent on the same GS platform and 4B1 engines that date back to their long-time partnership with Chrysler (and Hyundai) in the mid '00s. Admittedly, the chassis and engines have served the company well, underpinning a wide variety of vehicles sold around the world, and seeing quite a few revisions to at least attempt to keep products competitive. But, the GS chassis is old, heavy, and severely out of date - and when matched to the underpowered 4B1 series engines - make for largely uncompetitive offerings in the market. While something like the Outlander Sport is indeed interesting compared to a Honda CR-V, it is by no means the smart choice in the segment. So, going forward, unless Mitsubishi has had a skunkworks of sorts developing their chassis and engine replacements over the past few years, what exactly are they planning to do for their bread-and-butter models? I think the straightforward answer is without a doubt the Nissan North America parts bin. With so many of their models selling well, and for the most part, are reasonably well-reviewed, it would be quite simple to adapt the chassis and powertrain to Mitsubishi's liking to create a high-volume alternative to what is currently available now.