The chairman of auto industry giant Nissan Motors and Renault, Carlos Ghosn, has been arrested after allegedly using Nissan's money for himself and being accused of serious misconduct.
Mr Ghosn will soon be removed from his role at Nissan after the car maker was provided with a whistleblower report alleging he and the company's Representative Director Greg Kelly had been reporting compensation amounts in the Tokyo Stock Exchange that were less than the actual amount.
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Nissan said in a statement that it had been working for investigators for months and Mr Ghosn had been acting to make his compensation appear less than what he actually got, reports Reuters.
Following the revelations, Mr Ghosn was arrested by Tokyo prosecutors, with local media reporting he was being questioned and his offices were being searched.
The city's prosecutors' office has refused to comment, while Renault is yet to release a statement.
The arrest has sent shockwaves across Japan and the industry, with Mr Ghosn being a respected figure known for turning Nissan around from near bankruptcy and shaping the Renault-Nissan-Mitsubishi Motor alliance.
The news led Renault shares to tumble 13 percent in Paris, quickly becoming among the worst performing shares in Europe. Nissan's German-list securities reportedly plunged 12 percent.
Mr Ghosn began his career at Michelin in France, before joining Renault and Nissan.
Nissan's CEO Hiroto Saikawa will propose to remove Mr Ghosn and Mr Kelly from the board.
Newshub.
