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US approves extradition of Americans accused of arranging Carlos Ghosn's escape

In the latest chapter of ex-Nissan CEO Carlos Ghosn's dramatic downfall, two Americans are about to face Japan's notoriously tough justice system. The US State Department has approved the extradition of Michael and Peter Taylor, who are accused of helping Ghosn flee Japan, reports the Associated Press. Ghosn was under house arrest in Japan, awaiting trial for alleged financial malfeasance during his tenure as head of Nissan and the Renault-Nissan Alliance. In December 2019, Michael Taylor (pictured), a former member of the US Special Forces, and his son Peter, allegedly smuggled Ghosn out of Japan in a musical instrument case on two charter flights, from Japan to Turkey, and then from Turkey to Ghosn's childhood home of Lebanon. According to the AP, the Taylors received two payments from the Ghosn family totaling $1.36 million (one to Peter Taylor's company and the other in cryptocurrency). Michael Taylor ran a business security firm after retiring from the US Army. The Taylors have been in jail in Massachusetts since their arrest in May. A Federal judge was attempting to block the extradition request from Japan, but on Wednesday, the State Department overruled her, the Taylors' lawyers said. Ghosn, for his part, maintains his innocence and says that he fled Japan because he didn't expect a fair trial in Japan's court system, which has a 99.9 percent conviction rate. Unless this saga takes another unexpected turn, the Taylors will now have to face that very system. Government/Legal Nissan Renault

Facts point to legal violations by Carlos Ghosn, says Nissan external review

YOKOHAMA, Japan — An external committee reviewing governance at Nissan Motor Co said on Wednesday there were enough facts to suspect violations of laws and the private use of company funds by ousted chairman Carlos Ghosn. Following a three-month audit of Nissan's governance after a scandal that shook the global auto industry, the committee put the blame squarely on what it called Ghosn's concentration of power. It also acknowledged Nissan CEO Hiroto Saikawa's role in Ghosn's salary arrangement at the heart of the scandal. Twenty years to the day since French automaker Renault SA agreed to rescue Nissan, the committee described a corporate culture at Nissan "in which no one can make any objections to Mr. Ghosn," who was "in a way deified within Nissan as a savior who had redeemed Nissan from collapse." A representative for Ghosn replied in a statement that the allegations made against the former Nissan chairman "will be revealed for what they are: part of an unsubstantiated smear campaign against Carlos Ghosn to prevent the integration of the Alliance and conceal Nissan's deteriorating performance." The group issued 38 recommendations to bolster Nissan's governance, including that top executive positions at the Japanese car maker should not be held by people serving in executive positions at Renault or junior partner Mitsubishi Motors. It also proposed that the majority of directors, including the chairman of the board, be independent, outside directors and that the role of company chairman be abolished. Responding to the committee's comments, Saikawa told reporters on Thursday that Nissan would seriously consider the committee's recommendations, which he characterized as "tough." Saikawa, who was speaking outside his home, did not specifically address his responsibility in the scandal but has previously said that top management, including himself, were responsible for weak governance which led to the misconduct. The recommendations from the external, seven-member committee came weeks after Nissan and Renault said they would retool their alliance, one of the world's biggest automaking groupings, to break up the all-powerful chairmanship previously held by Ghosn. "There are facts sufficient to suspect violations of laws and regulations, violation of internal rules and private use of company funds and expenses ... by Mr. Ghosn," the committee said in its report.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade