Carlos Ghosn, Renault CEO and chairman of the board of Nissan and Mitsubishi Motors, is still in custody in Japan for suspected financial malpractices this Tuesday, November 20. For his part, the French Minister of the Economy, Bruno Le Maire, assured that no fraud had been identified in France.

The case is shaking the global automotive industry. Carlos Ghosn, President and CEO of Renault, also chairman of the board of Nissan and Mitsubishi Motors, is in turmoil. Suspected of financial malpractice, he was arrested Monday in Tokyo, Japan. Ouest-France takes stock of what we know about this spectacular decline.

What is he suspected of?

The arrest of the star boss as well as one of his collaborators, Greg Kelly, arose from an investigation conducted for several months within the group after an internal complaint. "The investigation has shown that over the years, they have reported pay amounts lower than the actual amounts in reports on the Tokyo Stock Exchange to reduce the reported amount of compensation for Carlos Ghosn," says the automaker Japanese in a statement.

The Lebanese-Brazilian-French industrialist has been questioned since Monday. His custody can last up to 23 days for this single arrest. According to the Japanese media, a law will be implemented allowing those who collaborate with the investigators to minimize their sentence if it turns out that they were also aware of the facts alleged against Carlos Ghosn.

According to a statement from the Japanese prosecutor, he "conspired to minimize his compensation five times between June 2011 and June 2015" . The sum of 4.9 billion yen (about 37 million euros at the current price) has been declared to the tax authorities while Carlos Ghosn has won nearly 10 billion yen over the period, said the prosecution.

At a press conference held on Monday night, Nissan Executive Chairman Hiroto Saikawa also mentioned "many other malpractices, such as the use of corporate property for personal purposes . " According to local media, a subsidiary of Nissan has financed the purchase of luxury homes in four countries, properties in which Carlos Ghosn went for free as he pleased. In addition, according to the NHK public channel, he allegedly pocketed sums declared on behalf of other directors.

How does the French state react?

The subject is very sensitive while the French State holds 15% of the group's capital at Losange. French President Emmanuel Macron reacted quickly, saying the state would be "extremely vigilant" about the stability of the group at Losange and the alliance with Nissan. Minister of the Economy, Bruno Le Maire, also assured that "the first concern" was the "consolidation" of the partnership.

But the government does not intend to claim his ouster Renault at the board of directors convened this Tuesday in the day. "We are not going to ask the formal departure of Carlos Ghosn to the board of directors for a simple reason: we have no proof," said Bruno Le Maire, who nevertheless wants an "interim governance" . According to the minister, the French administration has, moreover, identified no tax fraud in France from Carlos Ghosn.

On the Japanese side, Nissan convenes Thursday an extraordinary board of directors to dismiss Carlos Ghosn from his position as chairman of this body. Mitsubishi Motors (MMC) will also "propose to the board of directors to quickly remove Carlos Ghosn from his title of president" . The automaker will conduct an internal investigation to determine whether it has committed similar malfeasance within MMC.

What consequences for Renault and its alliance with Nissan?

Carlos Ghosn had appointed in February a number two, Thierry Bolloré, called to succeed him at the head of the French manufacturer. The objective at the time was already to reassure the public authorities on the future of Renault, today concerned about the "stability" of the manufacturer, as Bruno Le Maire said.

If Carlos Ghosn is not irreplaceable at Nissan or Mitsubishi Motors and already has a successor appointed within Renault, his lapse appears more problematic for the alliance Renault-Nissan-Mitsubishi Motors which he was the linchpin. "This case is not likely to affect the alliance between the three entities," promised Nissan boss Hiroto Saikawa, while considering that the consequences would undoubtedly be important for Renault.

On the stock market side, the impacts of the business are already quantifiable. Renault action sank a little more Tuesday morning at the Paris Bourse, losing more than 3% after a fall of 8.43% Monday.

Finally, the lapse of Carlos Ghosn could actually hide a "coup" Nissan against him to avoid an even closer alliance with the French manufacturer, say some industry analysts. In recent months, resentment has been brewing in the Japanese press, especially since rumors of the original duo born in 1999 arose in the spring, a scenario that does not really appeal to Japan.

Every year, Nissan's contribution to Renault's results is significant, which causes Japanese employees to grind their teeth, annoyed to see the technologies, the production of certain vehicles (like the small Micra sedan manufactured in France) and a part of profits recovered by the French manufacturer. At the beginning of the adventure, Nissan, riddled with debt, was a weak link. But the firm is reborn quickly from the ashes, at the cost of severe restructuring under the aegis of Carlos Ghosn. Today, Renault owns 43% of Nissan, which owns 15% of the diamond group, while Nissan has 34% of its compatriot Mitsubishi Motors. The set weighs 10 million cars sold in 2017.