Mitsubishi follows Nissan in ousting disgraced chairman Ghosn

Japan’s Mitsubishi Motors has sacked Carlos Ghosn as chairman, less than a week after Nissan also ousted the car industry veteran.

Mitsubishi said that Ghosn, who is in custody after being arrested earlier this month, had been appointed chairman following the creation of its strategic alliance with Nissan and France’s Renault in 2016. But it continued: “He has lost the confidence of Nissan; and that is considered difficult for Mr Ghosn to continue conducting his activities as the representative director and chairman of the board.”

It has therefore removed him from both roles, and has appointed chief executive Osamu Masuko interim chairman.

Nissan announced on Friday it was removing Ghosn as chairman.

Ghosn sent shockwaves through the global car industry when he was arrested over accusations of financial irregularities, including claims he understated his remuneration, following an internal investigation at Nissan.

He remains in custody with fellow Nissan director Greg Kelly although they have not been charged. Neither has spoken publically about the accusations but according to local media reports in Tokyo, Ghosn is understood to refute all allegations against him.

The Franco-Brazilian was instrumental in turning around the then ailing Nissan’s fortunes and then forging the alliance between Nissan, Renault and Mitsubishi, which created the world’s second-largest car maker.

However, since his arrest, only Renault – now led by an interim management team – has voted to let him remain on the board, despite initial calls from France’s finance minister for him to step aside.

There are concerns that the alliance will not survive without Ghosn, a towering figure in the industry who led Nissan for nearly two decades. It is understood that executives from the three companies will met for the first time since his arrest later this week.