Being powerless - that's a role that has not been part of Carlos Ghosn's repertoire so far. For more than a decade, the 64-year-old manager led the car manufacturers Renault and Nissan in personal union. In addition, two years ago, the executive chair at Mitsubishi, as Renault-Nissan took over 34 percent of the Japanese carmaker. Goshn was one of the most powerful CEOs worldwide.
But now it looks as if fraud allegations bring down Ghosn - and force the turbo retreat of one of the longest-serving and most successful automanagers. The affair is astonishing for several reasons: For years Ghosn is one of the highest-paid CEOs in the industry, financially he should therefore hardly need tricks. In addition, his multiple purchases caused repeated discussions. So Ghosn could have guessed that his salary would look very carefully.
Retreat on installments, but always retain power
In the past few months, Ghosn had taken things easier for his circumstances and handed over the day-to-day operations of the three automakers to deputies. However, he had tactically preserved his power: he is currently serving as chairman of the board of directors of Nissan, as well as chief executive officer of the Triple Alliance and Renault.
Therefore, the top manager with the three nationalities is still considered the linchpin for the complex alliance between Renault, Nissan and Mitsubishi. Only in the spring, he received a contract extension as Renault CEO until 2022. But now he could get rid of his top job quick fix.
Nissan accuses Ghosn of "serious misconduct"
The allegations against Ghosn weigh heavily. For months, Nissan - allegedly following the advice of a whistleblower - had investigated allegations against its chairman Ghosn and another senior executive.
According to the investigation, Ghosn and his accused colleague Greg Kelly spent years in official reports to the Tokyo Stock Exchange, indicating lower compensation than actually paid, Nissan said in a statement Monday. Overall, the shortfall between 2011 and 2015 to 5 billion yen, about 38.8 million euros amount to, the news agency Reuters quoted the Japanese agencies Kyodo and Jiji. In plain English: Ghosn should have earned significantly more than he has officially stated.
Commuter Ghosn is being arrested in Japan
In addition, Ghosn is said to have used company property for private purposes and misrepresented the purpose of some corporate expenses.
Ghosn himself, the boss of Renault and chairman of Nissan and Mitsubishi commutes again and again between the different offices, seems to have been surprised by the allegations. Anyway, he traveled to Japan. There, according to press reports, on Monday night local Tokyo prosecutors interrogated him before he was finally arrested according to consistent media reports. As the newspaper "Asahi Shimbun" reported, also offices in the Nissan headquarters and rooms have been searched elsewhere.
Nissan CEO Hiroto Saikawa said in a news conference that Ghosn had been expected in Tokyo on Monday to confirm rumors that he was picked up at the airport, Saikawa said. Nor did he give details for which private expenses should have flowed company funds. Also to the question of whether Nissan would take legal action against Ghosn because of his misconduct, made Saikawa initially no information.
According to Saikawa to be decided on Thursday on the departure of Ghosn from the Board of the Japanese car maker. The partnership with Renault and Mitsubishi should not be affected in the words Saikawa's the allegations.
At Renault, nobody wanted to comment on the allegations on Monday. But if Ghosn can not fully refute the allegations in Japan, he can hardly be kept even as Renault boss.
Nickname: "The Cost Killer"
Born into a Lebanese family in Brazil, Ghosn studied in France and became an engineer at tire manufacturer Michelin. In 1996 he moved to Renault, where he launched a rigorous cost-cutting program. This earned him the nickname "The Cost-Killer." "The same method he used successfully in 1999 at Nissan, when the ailing brand entered into an alliance with Renault.
Later Ghosn found a new strategic direction for the alliance: as the markets in Europe and Japan stumbled, he put on cheap cars and earlier than others on electric cars with great financial success. Most recently, he forged the largest automaker in the world with the Mitsubishi integration.
In any case, financially, Ghosn could not complain about lack of recognition in the past decade. He has been one of the top-earning auto managers for years, and his dual role has earned him annual salaries with double-digit millions. Alone at Nissan Ghosn has earned just under 8 million euros last year, Renault paid him for his services last with 7.4 million euros.
Ghosn wanted to "make an effort" while delegating
In France, there were already fierce arguments in the past about the amount of Ghosn's salary. Ghosn is said to have secured further bonuses for himself and other car managers with complicated company constructs. However, Ghosn finally agreed to reduce his salary at Renault by 30 percent. "My job is changing, I'm getting less involved with Renault, so it's normal for the salaries to be adjusted," Ghosn said in February of his voluntary salary waiver - which in return, however, continued to secure Renault's power.
Asked if he was really ready to delegate and let go, Ghosn then replied, "I'll try, let's say, I'll learn another profession, and I'll approach him with a lot of goodwill."
Ghosn seems to be losing power. Has he lost track of the problems in his multiple jobs at some point? Or did he simply lack the grip, as has happened to several successful managers?
The coming days will show how Ghosn reacts to the allegations - and how much of his office remains after that. However, the days as an absolutist auto ruler also seem to number for Ghosn.