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Fiat contemplating sub-brand to compete with Dacia, Datsun

You can add Fiat to the admittedly short list of automakers considering a low-cost brand to rival Dacia. The inexpensive Eastern European brand from Renault-Nissan has performed on the balance sheet like a premium model line, and the money the alliance is taking off the table is encouraging other players to deal themselves in. Pretty soon Nissan's Datsun sub-brand will join the Dacia party, going on sale in Russia, Indonesia and India and will claim even more rubles, rupiahs and rupees for the parent company. Volkswagen recently said it will make a decision this year on a budget line for the Chinese market. With the euthanasia of Lancia and plans to move the Fiat brand upmarket, company CEO Sergio Marchionne wonders aloud to Automotive News Europe whether there could be room for a new budget brand underneath Fiat.
We're told that the initiative has been in the idea box for five years and even moved to the stage of name considerations, like Innocenti, but worries about profit kept it from realization. If such a range were to be developed, Marchionne says it couldn't be built in Italy and stay within budget, and the company is "analyzing its manufacturing capacity outside of Europe to see if a low-cost brand is viable."

New allegations against Ghosn concern payments to Saudi businessman

BEIJING – Fresh misconduct allegations brought by Tokyo prosecutors against ousted Nissan Chairman Carlos Ghosn center on the use of company funds to pay a Saudi businessman who is believed to have helped him out of financial difficulties, two company sources with knowledge of the matter said. Prosecutors arrested Ghosn for a third time on Friday, accusing him of aggravated breach of trust in transferring personal investment losses to the automaker. The prosecutors' statement said they believe that around October 2008, Ghosn was trying to deal with losses on paper of 1.85 billion yen ($16.6 million) incurred on a swap contract he had with a bank which it did not name. A person helped arrange a letter of credit for Ghosn and a company run by the person later received $14.7 million in Nissan funds in four installments between 2009 and 2012, the statement said, adding that the payments were made in Ghosn's and the person's interests. "By doing so, (Ghosn) behaved in a way that breached trust, and inflicted damage on the property of Nissan," the statement said. The statement also said Ghosn had earlier sought to have Nissan shoulder the appraisal losses directly. According to the Nissan sources who have knowledge of the company's probe into its former chief, the person who helped Ghosn is Khaled Al-Juffali, vice chairman of one of Saudi Arabia's largest conglomerates, E. A. Juffali and Brothers, and a member of the board at the Saudi Arabian Monetary Authority. He is also majority owner of a company called Al-Dahana which owns half of a regional joint venture called Nissan Gulf with the other half held by a wholly owned unit of Nissan Motor. Sheikh Khaled Juffali has no comment on this subject, according to an emailed statement from E. A. Juffali and Brothers. Ghosn's Tokyo-based lawyer, Motonari Otsuru, was unavailable for comment on this article, according to a person who answered the phone at his law office. A representative for the Ghosn family declined to comment. Other media have said Ghosn has through a lawyer denied that he shifted losses to Nissan and has told investigators that the four payments were for legitimate business purposes, including a reward for handling problems at Nissan dealers in Saudi Arabia. Tokyo prosecutors declined to comment. Asked about Ghosn's reported comments, a Nissan spokesman said: "We cannot comment on matters related to Ghosn's arrest for breach of trust.

Ex-Nissan exec Greg Kelly's suspended sentence lets him go home

TOKYO — A Tokyo court gave Greg Kelly, a former American executive at Nissan Motor charged with underreporting his boss Carlos GhosnÂ’s pay, a suspended sentence, but cleared him of most of the charges. The verdict announced Thursday of a 6-month sentence suspended for three years will allow Kelly to return to the U.S. during an appeal. Kelly's defense lawyers said they will appeal. It was unclear if prosecutors would also do so. Kelly, who appeared calm during the court session, said afterward that he was stunned by the verdict. “I have always acted in the best interests of Nissan, and I have never been involved in an unlawful act,” said Kelly, who is planning to head back to Tennessee. The court acquitted Kelly on some counts but found him guilty of charges for just one of the eight years for which the compensation allegedly was under-reported. The defense team said that was unacceptable. “Kelly is completely innocent. We cannot accept the erroneous ruling that found him guilty for that final year,” the defense, headed by Yoichi Kitamura, said in a statement. Kelly was arrested in November 2018 at the same time as Ghosn, a former Nissan chairman and head of the Renault-Nissan-Mitsubishi alliance. Both insist they are innocent and that the money in question was never paid or decided on. The trial at Tokyo District Court began in September 2020, with Ghosn absent after he jumped bail in late 2019, hiding in a box for music instruments on a private jet. He fled to Lebanon, which has no extradition treaty with Japan, and has been writing books and making movies about his experiences. During ThursdayÂ’s session, Chief judge Kenji Shimotsu repeatedly slammed Ghosn, telling the court Ghosn showed greed and malice in a “dictatorial rule” at Nissan. Nissan's faulty governance misled investors and had a damaging impact, he said. Shimotsu said Ghosn made an arrangement for his compensation that was “conducted solely out of his personal greed.” “There is absolutely no room for extenuating circumstances in his motive,” he said. Ghosn called the judgement a “save-face verdict” for the prosecutors and other Nissan executives that he accuses of colluding against him, Kelly, Renault and all shareholders. “I am relieved for Greg and his family,” Ghosn said in a Zoom call with a small group of reporters.