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Ex-Nissan chairman Carlos Ghosn indicted, may remain in jail for months

TOKYO — Nissan's ex-chairman Carlos Ghosn was charged Friday with breach of trust, according to the Tokyo District Court, making the star executive's release unlikely for months. Ghosn, arrested Nov. 19, was earlier charged with falsifying financial reports in underreporting his income by about 5 billion yen ($44 million) over five years through 2015. Ghosn; Greg Kelly, another Nissan executive; and Nissan as a legal entity also were charged Friday with additional underreporting of income, from 2015 through mid-2018. Ghosn's lawyer Motonari Ohtsuru said he would request that Ghosn be granted release on bail. His detention period for the breach of trust allegations was due to expire Friday. Kelly and Nissan were not charged with breach of trust. Those allegations center on Ghosn's handling of investment losses and payments made to a Saudi businessman. Ghosn, 64, says he's innocent. Suspects in Japan are routinely held for months until trials start, and Tokyo prosecutors maintain that Ghosn, a Brazilian-born Frenchman of Lebanese ancestry, is a flight risk. Earlier this week Ghosn told a Tokyo court he was innocent, in his first public appearance since his arrest, and appealed for his detention to end. But the court rejected that request. "I have a genuine love and appreciation for Nissan," Ghosn told the court. "In all of my efforts on behalf of the company, I have acted honorably, legally and with the knowledge and approval of the appropriate executives inside the company." He said the compensation was never decided on, the investment deal never resulted in any losses to Nissan, and the payments to the Saudi businessman were for legitimate services related to dealers and investments in the Gulf. Ghosn, who appeared much thinner than before his arrest, came down with a fever the day after his court appearance, but has since recovered, Ohtsuru, the lawyer, said. His wife Carole Ghosn issued a statement overnight out of Paris, expressing concern over his sickness. "I am pleading with the Japanese authorities to provide us with any information at all about my husband's health. We are fearful and very worried his recovery will be complicated while he continues to endure such harsh conditions and unfair treatment," she said. Apart from prosecutors, only embassy officials and Ghosn's lawyers are allowed to visit him. Such visits were canceled Thursday but resumed Friday.

Nissan recovery to focus on U.S., Japan, China markets

Nissan will pull back from Europe and elsewhere to focus on the United States, China and Japan under a plan that represents a new strategic direction for the embattled carmaker, people with direct knowledge of the plan told Reuters. The "operational performance plan" is due to be announced on May 28 and goes beyond fixing problems from ousted leader Carlos Ghosn's aggressive expansion drive, the people said. The company's struggles predate the current global economic shutdown. Nissan's 2019 sales slumped severely.  Nissan was already planning to implement what was described as a "do or die" plan in January, before the global coronavirus pandemic froze automotive production and sales worldwide.  Pursuit of market share, particularly in the United States, led to steep discounting and a cheapened brand. Under the new, three-year plan — reported here for the first time — Nissan aims to restore dealer ties and refresh lineups to regain pricing power and profitability, the people told Reuters. "This is not just a cost-cutting plan. We're rationalizing operations, reprioritizing and refocusing our business to plant seeds for the future," one of the people said. The plan also aims to cut competition and expand cooperation with alliance partners, the people said. Nissan will follow Mitsubishi in plug-in electric hybrid vehicle technology, with the smaller peer taking the lead in Asian markets outside China and Japan. France's Renault will likely focus on electrical vehicle technologies and Europe. Nissan and Mitsubishi declined to comment. Renault did not immediately respond to a request for comment. The plan, led mainly by Chief Operating Officer Ashwani Gupta rather than Nissan's low-key chief executive, Makoto Uchida, is aimed at freeing resources to invest in products and technology for the United States, China and Japan, the people said. "The net effect is even though we reduce our R&D spend this year versus last year and make other savings, we pump those freed-up resources back into core markets and core products," said one of the people, who declined to be identified as they were not authorized to speak with media on the matter. The plan is likely to take up to two weeks to be finalized, with sales and earnings targets complicated by the anticipated long-term impact on auto sales of government measures worldwide taken to stop the coronavirus outbreak, the people said.

Ghosn orders Nissan USA to double sales by 2017

Nissan CEO Carlos Ghosn has just one teensy-weensy request for its United States arm: Double your sales by 2017.
"China was not our biggest, I would say, disappointment. It was mainly the United States. We were expecting a strong year in the United States. It didn't happen," Ghosn said, speaking at a conference after announcing Nissan's 2012 fiscal results, Automotive News reports. Because of this, Ghosn has ordered his US executives to iron out the problems that affected new vehicle launches and to strengthen the company's dealer network.
In 2012, Nissan's US sales rose to 1.1 million units - a five-percent increase, and a record, at that. But the company's overall market share fell from 8.2 percent to 7.7 percent, putting the company further away from its goal of having a 10-percent stake overall.