German prosecutors have raided 10 business premises as part of a probe into suspected diesel emissions cheating involving Mitsubishi cars, the latest fallout from the so-called "diesel-gate" scandal.

Frankfurt prosecutors said they had opened a fraud investigation against senior employees at "an international car group", two international car suppliers and a car dealership.

The probe focuses on <a href="https://www.wionews.com/business-economy/honda-cuts-profit-sales-outlook-to-four-year-low-unveils-915-million-buyback-260779">Mitsubishi diesel vehicles</a> with 1.6- and 2.2-litre engines that were given Germany's highest Euro 5 and Euro 6 ratings depending on their adherence to emissions standards.

"There is a suspicion that the engines are equipped with a so-called shutdown device" that makes them appear less polluting in lab tests than they are on the road, the prosecutors' statement said.

A spokesperson for Mitsubishi Motors in Japan on Wednesday confirmed the raid on its German distributors as well as on its European research and development facilities - also based in the country.

Also Read:&nbsp;<a href="https://www.wionews.com/videos/bombardier-sells-commercial-aviation-division-to-mitsubishi-230739">Bombardier sells commercial aviation division to Mitsubishi</a>

"Mitsubishi Motors will, of course, collaborate and contribute to this investigation," the spokesperson stated, declining to offer further information.

Separately, <a href="https://www.wionews.com/business-economy/brexit-accelerating-japanese-firms-exodus-from-uk-report-198306">Japanese auto parts maker</a> Denso also admitted that German investigators visited their facilities.

<img alt="Mitsubishi Motors" data-entity-type="file" data-entity-uuid="50cb1934-211f-453d-b798-a6be7e3e84da" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2840%29_2.jpg" /> 
[ Mitsubishi Motors (Courtesy: Getty Images) ]

"Investigators from German authorities visited our facilities in Germany, and we are cooperating as a witness," a spokesman stated but declined to elaborate further.

On the Tokyo stock exchange, Mitsubishi shares were swamped by selling at the opening bell, delaying an initial price. When the stock was eventually traded, it was down 4.62 per cent at 433 yen.

The Mitsubishi probe is the latest twist in the diesel-gate scandal that erupted in 2015 when the Volkswagen group admitted to installing software in 11 million vehicles worldwide to dupe pollution tests.

The "defeat devices" allowed the affected cars to spew out up to 40 times more harmful nitrogen oxide than legally allowed.

The scandal has since ensnared a string of car companies, although Mitsubishi Motors had so far avoided being dragged into the controversy.

But the Tokyo-based firm did in 2016 admit to falsifying fuel-economy tests for 25 years to make the cars seem more efficient than they were.

A spokesman for German car supplier Continental confirmed that three of its locations had been searched as part of the probe. The firm was acting as "a witness" and cooperating fully with the investigation, he added.

German car parts manufacturer Bosch stated it was not involved in the raids.

Dogged by Scandal

Mitsubishi Motors is the junior partner in an uneasy three-way alliance with Renault and Nissan, making up one of the world's biggest automakers.

The partnership has been under strain since the dramatic arrest of its chairman Carlos Ghosn for alleged financial misconduct.

Ghosn made international headlines last month after he jumped bail and fled to Lebanon - apparently by hiding in a large case for audio equipment on a private jet.

He denies the charges, claiming they were cooked up by disgruntled Nissan executives hoping to block his plans to more closely integrate the automaker with Renault.

Ghosn has since claimed the car alliance was on the rocks, forcing Nissan last week to deny reports it was working on secret plans to possibly dissolve the alliance.

The diesel-gate saga meanwhile has cost the Volkswagen group -&nbsp;which includes Audi, Porsche, Skoda and Seat - more than 30 billion euros ($33 billion) in fines, compensation and buybacks.

Bosch, accused of supplying key components of Volkswagen's defeat devices, has also paid hundreds of millions of euros in fines at home and the United States but denies any wrongdoing.

Luxury automaker Daimler also denies cheating but nevertheless agreed to pay an 870-million-euro fine to German authorities last year for having sold vehicles that did not meet legal emission limits. 
&nbsp;

German prosecutors have raided 10 business premises as part of a probe into suspected diesel emissions cheating involving Mitsubishi cars, the latest fallout from the so-called "diesel-gate" scandal.

German prosecutors have raided 10 business premises as part of a probe into suspected diesel emissions cheating involving Mitsubishi cars, the latest fallout from the so-called "diesel-gate" scandal. Frankfurt prosecutors said they had opened a fraud investigation against senior employees at "an international car group", two international car suppliers and a car dealership. The probe focuses on Mitsubishi diesel vehicles with 1.6- and 2.2-litre engines that were given Germany's highest Euro 5 and Euro 6 ratings depending on their adherence to emissions standards. "There is a suspicion that the engines are equipped with a so-called shutdown device" that makes them appear less polluting in lab tests than they are on the road, the prosecutors' statement said. A spokesperson for Mitsubishi Motors in Japan on Wednesday confirmed the raid on its German distributors as well as on its European research and development facilities - also based in the country. Also Read: Bombardier sells commercial aviation division to Mitsubishi "Mitsubishi Motors will, of course, collaborate and contribute to this investigation," the spokesperson stated, declining to offer further information. Separately, Japanese auto parts maker Denso also admitted that German investigators visited their facilities. [ Mitsubishi Motors (Courtesy: Getty Images) ] "Investigators from German authorities visited our facilities in Germany, and we are cooperating as a witness," a spokesman stated but declined to elaborate further. On the Tokyo stock exchange, Mitsubishi shares were swamped by selling at the opening bell, delaying an initial price. When the stock was eventually traded, it was down 4.62 per cent at 433 yen. The Mitsubishi probe is the latest twist in the diesel-gate scandal that erupted in 2015 when the Volkswagen group admitted to installing software in 11 million vehicles worldwide to dupe pollution tests. The "defeat devices" allowed the affected cars to spew out up to 40 times more harmful nitrogen oxide than legally allowed. The scandal has since ensnared a string of car companies, although Mitsubishi Motors had so far avoided being dragged into the controversy. But the Tokyo-based firm did in 2016 admit to falsifying fuel-economy tests for 25 years to make the cars seem more efficient than they were. A spokesman for German car supplier Continental confirmed that three of its locations had been searched as part of the probe. The firm was acting as "a witness" and cooperating fully with the investigation, he added. German car parts manufacturer Bosch stated it was not involved in the raids. Dogged by Scandal Mitsubishi Motors is the junior partner in an uneasy three-way alliance with Renault and Nissan, making up one of the world's biggest automakers. The partnership has been under strain since the dramatic arrest of its chairman Carlos Ghosn for alleged financial misconduct. Ghosn made international headlines last month after he jumped bail and fled to Lebanon - apparently by hiding in a large case for audio equipment on a private jet. He denies the charges, claiming they were cooked up by disgruntled Nissan executives hoping to block his plans to more closely integrate the automaker with Renault. Ghosn has since claimed the car alliance was on the rocks, forcing Nissan last week to deny reports it was working on secret plans to possibly dissolve the alliance. The diesel-gate saga meanwhile has cost the Volkswagen group - which includes Audi, Porsche, Skoda and Seat - more than 30 billion euros ($33 billion) in fines, compensation and buybacks. Bosch, accused of supplying key components of Volkswagen's defeat devices, has also paid hundreds of millions of euros in fines at home and the United States but denies any wrongdoing. Luxury automaker Daimler also denies cheating but nevertheless agreed to pay an 870-million-euro fine to German authorities last year for having sold vehicles that did not meet legal emission limits.

Mitsubishi suspected of diesel-fraud; German prosecutors raid business premises

The CEO of crisis-hit Japanese automaker Nissan plans to resign, reports said Monday, as the firm's board meets to discuss an audit launched after former chief Carlos Ghosn's arrest over financial misconduct.

Hiroto Saikawa's reported decision to step down comes days after he admitted receiving <a href="https://www.wionews.com/world/nissan-probe-finds-ceo-saikawa-other-executives-overpaid-in-compliance-failure-report-247752">overpayments</a>, and is the latest blow to the firm after Ghosn's arrest and ouster.

Nissan said it had no immediate comment on the reports, which first emerged overnight.

The timing of Saikawa's resignation, as well as who will succeed him, has reportedly not yet been decided but the embattled CEO is said to have informed several Nissan executives of his decision.

Nissan's board, including executives from the firm's alliance partner Renault, will meet at the company's Yokohama headquarters outside Tokyo from Monday afternoon.

Their discussions, which will include the results of an internal Nissan audit, are expected to "run late into the night", sources told AFP.

Alleged overpayments

The audit was launched in the wake of the Ghosn scandal but appears to have implicated Saikawa and other executives for receiving excess pay as part of a scheme under which directors can earn a bonus if their company's share price rises above a certain level in a set period.

Saikawa is suspected of improperly adding 47 million yen ($440,000) to his compensation by altering the terms of a bonus, according to reports.

Nissan has not confirmed the details of the payments, but Saikawa apologized last week while denying any wrongdoing.

"I left the issue to someone else so I had thought it was dealt with in an appropriate manner," he told reporters.

The carmaker is currently undergoing an overhaul intended to strengthen governance after the Ghosn scandal.

In June, Nissan shareholders voted in favour of various measures including the establishment of three new oversight committees responsible for the appointment of senior officials, pay issues and auditing.

They also approved the election of 11 directors as the firm restructures, among them two Renault executives as well as Saikawa.

The reforms are designed to put Nissan on a more stable footing after the arrest of Ghosn, who has been sacked from his leadership roles at the Japanese firm and others.

He is awaiting trial on charges of under-reporting millions of dollars in salary and of using company funds for personal expenses.

Ghosn has denied any wrongdoing and accuses Nissan executives opposed to his plans to further integrate the firm with France's Renault of plotting against him.

Calls for Saikawa's resignation&nbsp;

Saikawa, a one-time Ghosn protege, turned sharply against his former mentor after his arrest, referring to the "dark side" of the tycoon's tenure and accusing him of accruing unchecked power that allowed his alleged wrongdoing to go undetected.

But the CEO has come under pressure himself in the scandal's wake, facing calls to resign from shareholders who view him as too heavily associated with the Ghosn era.

And while he resisted calls to step down immediately, he has said that he plans to hand over the reins after Nissan is back on track.

The Ghosn scandal has proved disastrous for Nissan, which in July announced that net profit plunged nearly 95 per cent in the April-June quarter, and confirmed it would cut 12,500 jobs worldwide.

The Japanese firm has also struggled to steady its relationship with Renault as part of a tripartite alliance with Mitsubishi Motors that Ghosn founded and once led.

Renault holds a 43 per cent stake in the Japanese automaker, which in turn controls 15 per cent of the French firm but has no voting rights -- an arrangement that has caused tensions.

"There are working theories" on a possible reform of the cross-holding structure between the two firms, a source close to the issue told AFP, adding that "nothing is official".

And Nissan faces other challenges, with Bloomberg News reporting that Christina Murray, the executive who led the company's audit, is also resigning, without giving details on why.

The CEO of crisis-hit Japanese automaker Nissan plans to resign, reports said Monday, as the firm's board meets to discuss an audit launched after former chief Carlos Ghosn's arrest over financial misconduct.

The CEO of crisis-hit Japanese automaker Nissan plans to resign, reports said Monday, as the firm's board meets to discuss an audit launched after former chief Carlos Ghosn's arrest over financial misconduct. Hiroto Saikawa's reported decision to step down comes days after he admitted receiving overpayments, and is the latest blow to the firm after Ghosn's arrest and ouster. Nissan said it had no immediate comment on the reports, which first emerged overnight. The timing of Saikawa's resignation, as well as who will succeed him, has reportedly not yet been decided but the embattled CEO is said to have informed several Nissan executives of his decision. Nissan's board, including executives from the firm's alliance partner Renault, will meet at the company's Yokohama headquarters outside Tokyo from Monday afternoon. Their discussions, which will include the results of an internal Nissan audit, are expected to "run late into the night", sources told AFP. Alleged overpayments The audit was launched in the wake of the Ghosn scandal but appears to have implicated Saikawa and other executives for receiving excess pay as part of a scheme under which directors can earn a bonus if their company's share price rises above a certain level in a set period. Saikawa is suspected of improperly adding 47 million yen ($440,000) to his compensation by altering the terms of a bonus, according to reports. Nissan has not confirmed the details of the payments, but Saikawa apologized last week while denying any wrongdoing. "I left the issue to someone else so I had thought it was dealt with in an appropriate manner," he told reporters. The carmaker is currently undergoing an overhaul intended to strengthen governance after the Ghosn scandal. In June, Nissan shareholders voted in favour of various measures including the establishment of three new oversight committees responsible for the appointment of senior officials, pay issues and auditing. They also approved the election of 11 directors as the firm restructures, among them two Renault executives as well as Saikawa. The reforms are designed to put Nissan on a more stable footing after the arrest of Ghosn, who has been sacked from his leadership roles at the Japanese firm and others. He is awaiting trial on charges of under-reporting millions of dollars in salary and of using company funds for personal expenses. Ghosn has denied any wrongdoing and accuses Nissan executives opposed to his plans to further integrate the firm with France's Renault of plotting against him. Calls for Saikawa's resignation Saikawa, a one-time Ghosn protege, turned sharply against his former mentor after his arrest, referring to the "dark side" of the tycoon's tenure and accusing him of accruing unchecked power that allowed his alleged wrongdoing to go undetected. But the CEO has come under pressure himself in the scandal's wake, facing calls to resign from shareholders who view him as too heavily associated with the Ghosn era. And while he resisted calls to step down immediately, he has said that he plans to hand over the reins after Nissan is back on track. The Ghosn scandal has proved disastrous for Nissan, which in July announced that net profit plunged nearly 95 per cent in the April-June quarter, and confirmed it would cut 12,500 jobs worldwide. The Japanese firm has also struggled to steady its relationship with Renault as part of a tripartite alliance with Mitsubishi Motors that Ghosn founded and once led. Renault holds a 43 per cent stake in the Japanese automaker, which in turn controls 15 per cent of the French firm but has no voting rights -- an arrangement that has caused tensions. "There are working theories" on a possible reform of the cross-holding structure between the two firms, a source close to the issue told AFP, adding that "nothing is official". And Nissan faces other challenges, with Bloomberg News reporting that Christina Murray, the executive who led the company's audit, is also resigning, without giving details on why.

Crisis-hit Nissan CEO set to resign as board meets

Former Nissan chief Carlos Ghosn posted bail of 1 billion yen ($9 million) in cash Wednesday, paving the way for his <a href="http://www.wionews.com/world/tokyo-court-grants-ex-nissan-chief-carlos-ghosn-bail-201209">release from a Tokyo detention centre after more than three months</a> in custody.

The auto tycoon is expected to walk out of the custody centre in northern Toyko after the court rejected a last-ditch appeal from prosecutors to block his release.

Dozens of journalists gathered outside the jail in northern Tokyo from dawn on Wednesday, but prosecutors could still prevent the release by filing new allegations against Ghosn, who already faces three charges of financial misconduct.

Overnight, he once again proclaimed his innocence of the charges, which include claims he under-reported his salary and sought to shift personal losses to Nissan's books.

"I am innocent and totally committed to vigorously defending myself in a fair trial against these meritless and unsubstantiated accusations," the 64-year-old said in a statement.

Members of Ghosn's family were also seen entering the building prior to an expected release.

The surprise court ruling granting Ghosn bail came after two unsuccessful previous attempts to win release and was the latest twist in a case that has gripped Japan and the business world since the auto industry titan's November 19 arrest.

Ghosn shook up his legal team last month, hiring renowned defence attorney Junichiro Hironaka, who quickly filed a new bail request.

The court had previously justified Ghosn's ongoing detention, saying he posed a flight risk and could seek to destroy evidence, so Hironaka's bail request offered restrictions intended to win the court's trust.

The bail terms prevent Ghosn from leaving Japan and include other measures restricting his communications.

'The Razor'

Kyodo news agency said the measures will restrict Ghosn's cell phone use and allow him to access a computer only in his lawyer's office during daytime hours on weekdays.

He will also be banned from contacting Nissan executives and other people with links to the allegations against him, the agency reported.

But Kyodo said Ghosn could still attend board meetings at Nissan, where he remains a director if the court gives approval.

His former right-hand man Greg Kelly, who was also detained November 19 on allegations he helped under-report the tycoon's compensation, was freed on bail of 70 million yen ($635,000) on Christmas Day.

Ghosn's prolonged stay behind bars has come under fire internationally and from rights groups.

Speaking to AFP and the French daily Les Echos in January -- his only interview with foreign media so far -- Ghosn said his continued detention "would not be normal in any other democracy".

"Why am I being punished before being found guilty?" he asked.

Under Japanese law, prosecutors can hold a suspect for up to 22 days while they investigate an allegation, and then can apply for repeated one-month stretches of pre-trial detention for each charge eventually levelled.

That means prosecutors could effectively prevent Ghosn from leaving detention despite Tuesday's bail decision if they level new allegations against him, restarting the 22-day detention clock.

In a shake-up of his legal team last month, Ghosn replaced a former prosecutor known as "The Breaker" with Hironaka, who has earned the nickname "The Acquitter" for his court record and "The Razor" for his mental sharpness.

Complex case

Speaking to reporters on Monday, Hironaka had vowed a "completely new legal strategy" to obtain his client's release, and experts said the change of tack appeared to be behind the surprise bail ruling.

"I think the content of the lawyer's application changed the situation," said Japanese lawyer Nobuo Gohara.

Nissan declined to comment on the bail decision, saying it was a matter for courts and prosecutors.

However, it said that an internal probe had "uncovered substantial evidence of blatantly unethical conduct" and that "further discoveries related to Ghosn's misconduct continue to emerge".

"The company's focus is firmly on addressing weaknesses in governance that failed to prevent this misconduct," it added in a statement.

A towering figure once revered in Japan for turning around Nissan's fortunes, Ghosn also forged a successful alliance between Nissan, Mitsubishi Motors and France's Renault.

But his attempts to deepen the alliance caused resentment in some quarters, and Ghosn has claimed the allegations against him are part of a "plot" by opponents of greater integration between the three firms.

Given the number of people involved in the complex case and their wide geographical spread, Hironaka said the case would run over a "very long time span".

However, he said prosecutors had begun handing over some of their evidence prior to a potential trial.

Former Nissan chief Carlos Ghosn posted bail of 1 billion yen ($9 million) in cash Wednesday, paving the way for his release from a Tokyo detention centre after more than three months in custody.

Former Nissan chief Carlos Ghosn posted bail of 1 billion yen ($9 million) in cash Wednesday, paving the way for his release from a Tokyo detention centre after more than three months in custody. The auto tycoon is expected to walk out of the custody centre in northern Toyko after the court rejected a last-ditch appeal from prosecutors to block his release. Dozens of journalists gathered outside the jail in northern Tokyo from dawn on Wednesday, but prosecutors could still prevent the release by filing new allegations against Ghosn, who already faces three charges of financial misconduct. Overnight, he once again proclaimed his innocence of the charges, which include claims he under-reported his salary and sought to shift personal losses to Nissan's books. "I am innocent and totally committed to vigorously defending myself in a fair trial against these meritless and unsubstantiated accusations," the 64-year-old said in a statement. Members of Ghosn's family were also seen entering the building prior to an expected release. The surprise court ruling granting Ghosn bail came after two unsuccessful previous attempts to win release and was the latest twist in a case that has gripped Japan and the business world since the auto industry titan's November 19 arrest. Ghosn shook up his legal team last month, hiring renowned defence attorney Junichiro Hironaka, who quickly filed a new bail request. The court had previously justified Ghosn's ongoing detention, saying he posed a flight risk and could seek to destroy evidence, so Hironaka's bail request offered restrictions intended to win the court's trust. The bail terms prevent Ghosn from leaving Japan and include other measures restricting his communications. 'The Razor' Kyodo news agency said the measures will restrict Ghosn's cell phone use and allow him to access a computer only in his lawyer's office during daytime hours on weekdays. He will also be banned from contacting Nissan executives and other people with links to the allegations against him, the agency reported. But Kyodo said Ghosn could still attend board meetings at Nissan, where he remains a director if the court gives approval. His former right-hand man Greg Kelly, who was also detained November 19 on allegations he helped under-report the tycoon's compensation, was freed on bail of 70 million yen ($635,000) on Christmas Day. Ghosn's prolonged stay behind bars has come under fire internationally and from rights groups. Speaking to AFP and the French daily Les Echos in January -- his only interview with foreign media so far -- Ghosn said his continued detention "would not be normal in any other democracy". "Why am I being punished before being found guilty?" he asked. Under Japanese law, prosecutors can hold a suspect for up to 22 days while they investigate an allegation, and then can apply for repeated one-month stretches of pre-trial detention for each charge eventually levelled. That means prosecutors could effectively prevent Ghosn from leaving detention despite Tuesday's bail decision if they level new allegations against him, restarting the 22-day detention clock. In a shake-up of his legal team last month, Ghosn replaced a former prosecutor known as "The Breaker" with Hironaka, who has earned the nickname "The Acquitter" for his court record and "The Razor" for his mental sharpness. Complex case Speaking to reporters on Monday, Hironaka had vowed a "completely new legal strategy" to obtain his client's release, and experts said the change of tack appeared to be behind the surprise bail ruling. "I think the content of the lawyer's application changed the situation," said Japanese lawyer Nobuo Gohara. Nissan declined to comment on the bail decision, saying it was a matter for courts and prosecutors. However, it said that an internal probe had "uncovered substantial evidence of blatantly unethical conduct" and that "further discoveries related to Ghosn's misconduct continue to emerge". "The company's focus is firmly on addressing weaknesses in governance that failed to prevent this misconduct," it added in a statement. A towering figure once revered in Japan for turning around Nissan's fortunes, Ghosn also forged a successful alliance between Nissan, Mitsubishi Motors and France's Renault. But his attempts to deepen the alliance caused resentment in some quarters, and Ghosn has claimed the allegations against him are part of a "plot" by opponents of greater integration between the three firms. Given the number of people involved in the complex case and their wide geographical spread, Hironaka said the case would run over a "very long time span". However, he said prosecutors had begun handing over some of their evidence prior to a potential trial.

Ex-Nissan chief Carlos Ghosn pays bail, set to leave Japan cell

A Tokyo court on Tuesday granted ex-Nissan chief Carlos Ghosn bail in a shock decision that could see the auto tycoon freed after more than three months of detention.

The court set the bail at one billion yen ($9 million), but prosecutors are likely to appeal the decision and could even file additional allegations against Ghosn to keep him from leaving detention.

It was the latest twist in a case that has kept Japan and the business world gripped since the tycoon's shock arrest on November 19 over suspicions of financial misconduct.

The court has previously said Ghosn's continued detention was justified because he posed a flight risk and could seek to tamper with evidence.

Ghosn and his lawyers have argued that neither of those is the case, and he even offered to wear a tracking bracelet and hire guards to monitor his whereabouts, pledging to stay in Japan.

The surprise decision came after Ghosn's new lead defence lawyer, Junichiro Hironaka, told reporters he had filed a "convincing" application for bail that contained fresh elements.

Hironaka, who has a reputation for securing acquittals for high-profile clients in a country where almost all court cases end in conviction, offered greater surveillance of Ghosn and a limit on his electronic communications to win bail.

But the court had previously shown no inclination to end the lengthy pre-trial detention, which has drawn some criticism internationally and from rights groups.

Prosecutors have defended his detention while they investigate three charges of financial misconduct, two involving alleged under-reporting of his salary and a third over a complex scheme in which Ghosn allegedly sought to transfer his losses to Nissan's books.

And they are likely to appeal the bail decision, though the courts have previously ruled against the prosecutors when they sought to extend Ghosn's detention as allegations against him were being investigated.

Under Japanese law, prosecutors can hold a suspect for up to 22 days while they investigate an allegation, and then can apply for repeated one-month stretches of pre-trial detention for each charge that is eventually levelled.

That means prosecutors could effectively prevent Ghosn from leaving detention despite today's bail decision if they level new allegations against him, starting the 22-day detention clock.

'Mediaeval rules'

On Monday, Ghosn's family said in a statement they would appeal to the United Nations Human Rights Council.

The family slammed Japan for its "mediaeval rules", in a statement read out by a lawyer representing Ghosn's wife Carole, who has previously described her husband's detention conditions as "deplorable".

The tycoon has denied all the allegations against him, and in an interview with AFP he slammed his continued detention.

"Why am I being punished before being found guilty?" Ghosn asked, speaking to AFP and the Les Echos daily in January from his detention centre.

The refusal to grant him bail "would not be normal in any other democracy", he said.

Ghosn's new lawyer Hironaka, who has earned the nickname "the acquitter" for his court record and the "razor" for his mental sharpness, vowed a "completely new legal strategy" to obtain his client's release.

Hironaka has also taken aim at Nissan, raising questions as to why the Japanese firm brought a case to prosecutors over incidents that allegedly took place more than 10 years ago.

A towering figure once revered in Japan for turning around Nissan's fortunes, Ghosn also forged a successful alliance between Nissan, Mitsubishi Motors and France's Renault.

But his attempts to deepen the alliance caused resentment in some quarters, and Ghosn has claimed the allegations against him are part of a "plot" by opponents of greater integration between the three firms.

Given the number of people involved in the complex case and their wide geographical spread, Hironaka said the case would run over a "very long time span".

However, he said prosecutors had begun handing over some of their evidence prior to a potential trial.

A Tokyo court on Tuesday granted ex-Nissan chief Carlos Ghosn bail in a shock decision that could see the auto tycoon freed after more than three months of detention.

A Tokyo court on Tuesday granted ex-Nissan chief Carlos Ghosn bail in a shock decision that could see the auto tycoon freed after more than three months of detention. The court set the bail at one billion yen ($9 million), but prosecutors are likely to appeal the decision and could even file additional allegations against Ghosn to keep him from leaving detention. It was the latest twist in a case that has kept Japan and the business world gripped since the tycoon's shock arrest on November 19 over suspicions of financial misconduct. The court has previously said Ghosn's continued detention was justified because he posed a flight risk and could seek to tamper with evidence. Ghosn and his lawyers have argued that neither of those is the case, and he even offered to wear a tracking bracelet and hire guards to monitor his whereabouts, pledging to stay in Japan. The surprise decision came after Ghosn's new lead defence lawyer, Junichiro Hironaka, told reporters he had filed a "convincing" application for bail that contained fresh elements. Hironaka, who has a reputation for securing acquittals for high-profile clients in a country where almost all court cases end in conviction, offered greater surveillance of Ghosn and a limit on his electronic communications to win bail. But the court had previously shown no inclination to end the lengthy pre-trial detention, which has drawn some criticism internationally and from rights groups. Prosecutors have defended his detention while they investigate three charges of financial misconduct, two involving alleged under-reporting of his salary and a third over a complex scheme in which Ghosn allegedly sought to transfer his losses to Nissan's books. And they are likely to appeal the bail decision, though the courts have previously ruled against the prosecutors when they sought to extend Ghosn's detention as allegations against him were being investigated. Under Japanese law, prosecutors can hold a suspect for up to 22 days while they investigate an allegation, and then can apply for repeated one-month stretches of pre-trial detention for each charge that is eventually levelled. That means prosecutors could effectively prevent Ghosn from leaving detention despite today's bail decision if they level new allegations against him, starting the 22-day detention clock. 'Mediaeval rules' On Monday, Ghosn's family said in a statement they would appeal to the United Nations Human Rights Council. The family slammed Japan for its "mediaeval rules", in a statement read out by a lawyer representing Ghosn's wife Carole, who has previously described her husband's detention conditions as "deplorable". The tycoon has denied all the allegations against him, and in an interview with AFP he slammed his continued detention. "Why am I being punished before being found guilty?" Ghosn asked, speaking to AFP and the Les Echos daily in January from his detention centre. The refusal to grant him bail "would not be normal in any other democracy", he said. Ghosn's new lawyer Hironaka, who has earned the nickname "the acquitter" for his court record and the "razor" for his mental sharpness, vowed a "completely new legal strategy" to obtain his client's release. Hironaka has also taken aim at Nissan, raising questions as to why the Japanese firm brought a case to prosecutors over incidents that allegedly took place more than 10 years ago. A towering figure once revered in Japan for turning around Nissan's fortunes, Ghosn also forged a successful alliance between Nissan, Mitsubishi Motors and France's Renault. But his attempts to deepen the alliance caused resentment in some quarters, and Ghosn has claimed the allegations against him are part of a "plot" by opponents of greater integration between the three firms. Given the number of people involved in the complex case and their wide geographical spread, Hironaka said the case would run over a "very long time span". However, he said prosecutors had begun handing over some of their evidence prior to a potential trial.

Tokyo court grants ex-Nissan chief Carlos Ghosn bail on $9 million

The board of automaker Nissan meets Monday to discuss replacing <a href="http://www.wionews.com/world/carlos-ghosn-suspected-of-shifting-personal-investment-losses-to-nissan-report-179699">former chairman Carlos Ghosn</a> after his arrest for financial misconduct, as tensions grow in the firm's alliance with Renault.

The Japanese company removed Ghosn from his post last month after he was detained on allegations of under-reporting his salary.

But it appears unlikely to agree Monday on a permanent replacement for him, in part because of open discord in its alliance with French automaker Renault.

Nissan itself faces charges for allegedly submitting financial documents that understated Ghosn's pay, and Renault is now reportedly seeking more sway on the Japanese firm's board.

The Wall Street Journal reported Sunday that Renault urged Nissan in a letter to hold a shareholders meeting to discuss Renault's representation on the firm's nine-member board and within its top management.

It warned that Nissan's indictment "creates significant risks to Renault, as Nissan's largest shareholder, and to the stability of our industrial alliance", the Journal reported.

A source with knowledge of the issue confirmed that Nissan had received the letter and was planning an extraordinary shareholders' meeting in January.

Renault's letter is the latest sign of the tensions in the alliance that groups the firm with Nissan and Mitsubishi Motors -- a partnership that Ghosn forged and was often credited with holding together.

While Nissan and Mitsubishi Motors quickly removed Ghosn from leadership positions after his arrest, Renault has kept the auto executive on as CEO and chairman.

And while Nissan CEO Hiroto Saikawa launched a broadside against his former mentor shortly after his arrest, describing his "dark side", Renault has approached the allegations more cautiously.

The decision on replacing Ghosn at Nissan is being led by an advisory committee that includes a former Renault executive, and Japanese media reports suggested it was unlikely to reach a decision on Monday.

"It slows things down, but it isn't the end of the world," a source close to the issue told AFP.

"We need to let them talk and decide properly. That's more important than rushing."&nbsp;

The company is instead likely to announce new governance measures intended to address criticism that it failed to prevent Ghosn's alleged misconduct.

As his former employer wrangles over his replacement, Ghosn remains in the one-man cell at a Tokyo detention centre he has occupied since his shock arrest on November 19.

Prosecutors have already charged him with under-reporting his pay by around $44 million over the five years to 2015, and are also investigating claims he under-reported it further in the last three years.

He will be detained until at least December 20, when prosecutors will either file new charges or request another 10-day detention period while they continue investigations.

A range of additional claims of financial misconduct have been made against Ghosn, including using Nissan funds to purchase homes around the world, though prosecutors have yet to level those accusations formally.

He and his former right-hand man Greg Kelly, who is also under arrest, reportedly deny any wrongdoing.

The charges have sparked a legal battle over Ghosn's flat in Rio de Janeiro, with Nissan trying to prevent his family members from accessing the property and removing items.

A Brazilian court authorised relatives to access the apartment, despite claims from Nissan that they were removing corporate documents.

Ghosn's arrest marked a stunning reversal of fortune for the Franco-Brazilian-Lebanese tycoon, once revered in Japan for effectively rescuing Nissan from insolvency.

He helped engineer the alliance between Nissan, Renault and Mitsubishi, creating a partnership that sold more cars than any other globally last year.&nbsp;

The board of automaker Nissan meets Monday to discuss replacing former chairman Carlos Ghosn after his arrest for financial misconduct, as tensions grow in the firm's alliance with Renault.

The board of automaker Nissan meets Monday to discuss replacing former chairman Carlos Ghosn after his arrest for financial misconduct, as tensions grow in the firm's alliance with Renault. The Japanese company removed Ghosn from his post last month after he was detained on allegations of under-reporting his salary. But it appears unlikely to agree Monday on a permanent replacement for him, in part because of open discord in its alliance with French automaker Renault. Nissan itself faces charges for allegedly submitting financial documents that understated Ghosn's pay, and Renault is now reportedly seeking more sway on the Japanese firm's board. The Wall Street Journal reported Sunday that Renault urged Nissan in a letter to hold a shareholders meeting to discuss Renault's representation on the firm's nine-member board and within its top management. It warned that Nissan's indictment "creates significant risks to Renault, as Nissan's largest shareholder, and to the stability of our industrial alliance", the Journal reported. A source with knowledge of the issue confirmed that Nissan had received the letter and was planning an extraordinary shareholders' meeting in January. Renault's letter is the latest sign of the tensions in the alliance that groups the firm with Nissan and Mitsubishi Motors -- a partnership that Ghosn forged and was often credited with holding together. While Nissan and Mitsubishi Motors quickly removed Ghosn from leadership positions after his arrest, Renault has kept the auto executive on as CEO and chairman. And while Nissan CEO Hiroto Saikawa launched a broadside against his former mentor shortly after his arrest, describing his "dark side", Renault has approached the allegations more cautiously. The decision on replacing Ghosn at Nissan is being led by an advisory committee that includes a former Renault executive, and Japanese media reports suggested it was unlikely to reach a decision on Monday. "It slows things down, but it isn't the end of the world," a source close to the issue told AFP. "We need to let them talk and decide properly. That's more important than rushing." The company is instead likely to announce new governance measures intended to address criticism that it failed to prevent Ghosn's alleged misconduct. As his former employer wrangles over his replacement, Ghosn remains in the one-man cell at a Tokyo detention centre he has occupied since his shock arrest on November 19. Prosecutors have already charged him with under-reporting his pay by around $44 million over the five years to 2015, and are also investigating claims he under-reported it further in the last three years. He will be detained until at least December 20, when prosecutors will either file new charges or request another 10-day detention period while they continue investigations. A range of additional claims of financial misconduct have been made against Ghosn, including using Nissan funds to purchase homes around the world, though prosecutors have yet to level those accusations formally. He and his former right-hand man Greg Kelly, who is also under arrest, reportedly deny any wrongdoing. The charges have sparked a legal battle over Ghosn's flat in Rio de Janeiro, with Nissan trying to prevent his family members from accessing the property and removing items. A Brazilian court authorised relatives to access the apartment, despite claims from Nissan that they were removing corporate documents. Ghosn's arrest marked a stunning reversal of fortune for the Franco-Brazilian-Lebanese tycoon, once revered in Japan for effectively rescuing Nissan from insolvency. He helped engineer the alliance between Nissan, Renault and Mitsubishi, creating a partnership that sold more cars than any other globally last year.

Nissan meets to replace Ghosn, as tensions with Renault grow

Top executives from Mitsubishi Motors gather on Monday to sack Carlos Ghosn as chairman over alleged financial misconduct that the once-revered tycoon denies, as further allegations leaked out against him.

At an emergency meeting in Tokyo, "it is to be proposed to the Board of Directors to promptly remove Ghosn from his position as... chairman," said the Japanese firm, the third company in the powerful alliance also involving Nissan and Renault.

Following his stunning arrest last Monday, the 64-year-old Brazil-born Frenchman began his second week in a Japanese detention centre facing allegations he under-reported his salary to the tune of $44 million over several years.

He has not been formally charged and denies the allegations, telling prosecutors he had no intention of under-declaring his compensation.

Fellow executive Greg Kelly, described as the mastermind behind the alleged misconduct, has also reportedly denied the allegations, stressing that his boss's compensation was paid in an appropriate fashion.

The board of Nissan decided unanimously on Thursday to oust Ghosn as chairman, a spectacular fall from grace for the dynamic businessman credited with turning around the firm's once-flagging fortunes by tying its fate to Renault.

The executives made their decision "based on the copious amount and compelling nature of the evidence of misconduct presented," said a company spokesman.

According to local media, Nissan formed a "secret" cell within the firm to look into the alleged financial misdeed.

Executives accelerated the probe amid concerns Ghosn was working on a fully-fledged merger between Nissan and Renault, Kyodo News said without naming its sources.

Renault is the dominant partner in the alliance, holding 43 per cent of the shares in Nissan, but the Japanese firm outsells its French counterpart -- sparking concern in Tokyo about the balance of power.

Together, the three-way alliance is the world's top-selling car company, with some 10.6 million vehicles rolling off the production line. It employs around 450,000 people worldwide.

Renault, which is 15-percent owned by the French state, has decided to stick by Ghosn for now, appointing an interim boss while the current CEO and chairman is "incapacitated."

'Conspiracy theory'

France's economy minister Bruno Le Maire has urged the Japanese firm to share "quickly" whatever evidence it has gathered and stressed Ghosn will stay at the helm of Renault "until there are tangible charges."

However, Le Maire also said "I do not believe in a conspiracy theory" amid talk of a so-called "palace coup" within Nissan to prevent Ghosn merging the firm with Renault.

Nissan's CEO Hiroto Saikawa spoke to staff on Monday to address the issue. Saikawa, who rose through the Nissan ranks under Ghosn's wing, has already spoken of his "great resentment and dismay" at the allegations.

Meanwhile, further claims continued to leak out in the Japanese media of Ghosn's alleged misconduct.

Officially, prosecutors are looking into allegations that he understated his income by around five billion yen ($44 million) between June 2011 and June 2015.

But the Asahi Shimbun said authorities are planning to re-arrest him on charges of understating his income by a further three billion yen -- for a total of $71 million -- for the following three fiscal years.

Under Japanese law, suspects can face additional arrest warrants, which can result in heavier penalties. The current allegations could see Ghosn facing 10 years behind bars and/or a 10-million-yen fine.

Separately, Kyodo has reported that Nissan paid $100,000 annually since 2002 to Ghosn's sister for a fictive "advisory" role.

And the Mainichi Shimbun reported on Monday that Ghosn used Nissan's corporate money to pay a donation to his daughter's university and also charged family trips to the company.

Top executives from Mitsubishi Motors gather on Monday to sack Carlos Ghosn as chairman over alleged financial misconduct that the once-revered tycoon denies, as further allegations leaked out against him.

Top executives from Mitsubishi Motors gather on Monday to sack Carlos Ghosn as chairman over alleged financial misconduct that the once-revered tycoon denies, as further allegations leaked out against him. At an emergency meeting in Tokyo, "it is to be proposed to the Board of Directors to promptly remove Ghosn from his position as... chairman," said the Japanese firm, the third company in the powerful alliance also involving Nissan and Renault. Following his stunning arrest last Monday, the 64-year-old Brazil-born Frenchman began his second week in a Japanese detention centre facing allegations he under-reported his salary to the tune of $44 million over several years. He has not been formally charged and denies the allegations, telling prosecutors he had no intention of under-declaring his compensation. Fellow executive Greg Kelly, described as the mastermind behind the alleged misconduct, has also reportedly denied the allegations, stressing that his boss's compensation was paid in an appropriate fashion. The board of Nissan decided unanimously on Thursday to oust Ghosn as chairman, a spectacular fall from grace for the dynamic businessman credited with turning around the firm's once-flagging fortunes by tying its fate to Renault. The executives made their decision "based on the copious amount and compelling nature of the evidence of misconduct presented," said a company spokesman. According to local media, Nissan formed a "secret" cell within the firm to look into the alleged financial misdeed. Executives accelerated the probe amid concerns Ghosn was working on a fully-fledged merger between Nissan and Renault, Kyodo News said without naming its sources. Renault is the dominant partner in the alliance, holding 43 per cent of the shares in Nissan, but the Japanese firm outsells its French counterpart -- sparking concern in Tokyo about the balance of power. Together, the three-way alliance is the world's top-selling car company, with some 10.6 million vehicles rolling off the production line. It employs around 450,000 people worldwide. Renault, which is 15-percent owned by the French state, has decided to stick by Ghosn for now, appointing an interim boss while the current CEO and chairman is "incapacitated." 'Conspiracy theory' France's economy minister Bruno Le Maire has urged the Japanese firm to share "quickly" whatever evidence it has gathered and stressed Ghosn will stay at the helm of Renault "until there are tangible charges." However, Le Maire also said "I do not believe in a conspiracy theory" amid talk of a so-called "palace coup" within Nissan to prevent Ghosn merging the firm with Renault. Nissan's CEO Hiroto Saikawa spoke to staff on Monday to address the issue. Saikawa, who rose through the Nissan ranks under Ghosn's wing, has already spoken of his "great resentment and dismay" at the allegations. Meanwhile, further claims continued to leak out in the Japanese media of Ghosn's alleged misconduct. Officially, prosecutors are looking into allegations that he understated his income by around five billion yen ($44 million) between June 2011 and June 2015. But the Asahi Shimbun said authorities are planning to re-arrest him on charges of understating his income by a further three billion yen -- for a total of $71 million -- for the following three fiscal years. Under Japanese law, suspects can face additional arrest warrants, which can result in heavier penalties. The current allegations could see Ghosn facing 10 years behind bars and/or a 10-million-yen fine. Separately, Kyodo has reported that Nissan paid $100,000 annually since 2002 to Ghosn's sister for a fictive "advisory" role. And the Mainichi Shimbun reported on Monday that Ghosn used Nissan's corporate money to pay a donation to his daughter's university and also charged family trips to the company.

Carlos Ghosn faces Mitsubishi sack as more allegations surface

Japanese car firm <a href="http://www.wionews.com/world/nissan-ceo-tells-staff-feels-dismay-at-ghosn-scandal-179100">Mitsubishi Motors today</a>&nbsp;sacked Carlos Ghosn, 64, as chairman&nbsp;over alleged financial misconduct at the Japanese-based car company.

"During today's board meeting, it was decided that he is dismissed as chairman," the company said in a statement.

The <a href="http://www.wionews.com/business-economy/nissan-board-sacks-carlos-ghosn-as-chairman-media-178798">high-profile ex-chairman was arrested</a> last week after reports of financial mismanagement emerged. The eight-member Mitsubishi board met at the Yokohama headquarters in Tokyo to dismiss Ghosn. The meeting was attended by several hundred staff members which was presided by CEO Hiroto Saikawa.

Nissan CEO Hiroto Saikawa had said earlier that concentration of power in Ghosn meant there was a lack of direct communication between the other alliance board members, Reuters reported.

Ghosn allegedly underreported his salary to the tune of&nbsp; $44 million between June 2011 and June 2015. The company said Ghosn was ousted "based on the copious amount and compelling nature of the evidence of misconduct presented."

Japanese media reports said authorities are planning to re-arrest him on charges of understating his income totaling $71 million. According to local media reports, Nissan has formed a secret cell within the company to look into the alleged financial misconduct of Ghosn.

However, France has decided to stand by Ghosn for now, it has appointed Thierry Bollore as the interim CEO of Renault. The Mitsubishi-Nissan-Renault trinity is one of the biggest car entity in the world selling over 10 million cars worldwide employing thousands of employees.

Ghosn faces 10 years imprisonment according to Japanese law. Ghosn has denied the allegations.

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Japanese car firm Mitsubishi Motors today sacked Carlos Ghosn, 64, as chairman over alleged financial misconduct at the Japanese-based car company. "During today's board meeting, it was decided that he is dismissed as chairman," the company said in a statement.

Japanese car firm Mitsubishi Motors today sacked Carlos Ghosn, 64, as chairman over alleged financial misconduct at the Japanese-based car company. "During today's board meeting, it was decided that he is dismissed as chairman," the company said in a statement. The high-profile ex-chairman was arrested last week after reports of financial mismanagement emerged. The eight-member Mitsubishi board met at the Yokohama headquarters in Tokyo to dismiss Ghosn. The meeting was attended by several hundred staff members which was presided by CEO Hiroto Saikawa. Nissan CEO Hiroto Saikawa had said earlier that concentration of power in Ghosn meant there was a lack of direct communication between the other alliance board members, Reuters reported. Ghosn allegedly underreported his salary to the tune of $44 million between June 2011 and June 2015. The company said Ghosn was ousted "based on the copious amount and compelling nature of the evidence of misconduct presented." Japanese media reports said authorities are planning to re-arrest him on charges of understating his income totaling $71 million. According to local media reports, Nissan has formed a secret cell within the company to look into the alleged financial misconduct of Ghosn. However, France has decided to stand by Ghosn for now, it has appointed Thierry Bollore as the interim CEO of Renault. The Mitsubishi-Nissan-Renault trinity is one of the biggest car entity in the world selling over 10 million cars worldwide employing thousands of employees. Ghosn faces 10 years imprisonment according to Japanese law. Ghosn has denied the allegations. ×

Mitsubishi sacks Carlos Ghosn over alleged financial misconduct

Mitsubishi Motors Corp overstated the fuel economy on eight of its vehicle models, in addition to four others the embattled Japanese automaker admitted to earlier this year, the Nikkei newspaper reported on Tuesday. 
 
Japan&#39;s transport ministry, which had been investigating the fuel economy on Mitsubishi models including the Pajero SUV, would report its findings as early as Tuesday, the Nikkei said, citing an unnamed source. 
 
The Nikkei said the company would likely withdraw the affected vehicles from the market to revise its catalogues, a process which could take about two to three weeks. Compensation to customers was a possibility, it added. 
 
Both Mitsubishi and the transport ministry declined to comment on the report. Shares in the automaker slipped 0.8 per cent in early trade. 
 
Japan&#39;s sixth-largest automaker has been struggling to recover after admitting in April that it had falsified the fuel economy on two of its minivehicle models, along with two similar models produced for Nissan Motor Co. 
 
The scandal led to a suspension of sales for nearly three months, and prompted a slump in Mitsubishi`s market value. The company sought financial assistance from Nissan, which agreed to buy a controlling one-third stake for $2.2 billion. 
 
An internal investigation has uncovered poor communication, slack governance and pressure on resource-starved engineers as the root of Mitsubishi&#39;s problems.&nbsp; 
 
Mitsubishi said last month that the resulting slump in domestic sales led to a 75 per cent plunge in first-quarter operating profit, while the company said it booked an extraordinary loss of 125.9 billion Yen ($1.24 billion) in the first quarter as a result of the cheating. 
 
(Reuters)

The Japanese automaker is struggling to recover its image after admitting in April that it had falsified fuel economy on four other models

Mitsubishi Motors Corp overstated the fuel economy on eight of its vehicle models, in addition to four others the embattled Japanese automaker admitted to earlier this year, the Nikkei newspaper reported on Tuesday. Japan's transport ministry, which had been investigating the fuel economy on Mitsubishi models including the Pajero SUV, would report its findings as early as Tuesday, the Nikkei said, citing an unnamed source. The Nikkei said the company would likely withdraw the affected vehicles from the market to revise its catalogues, a process which could take about two to three weeks. Compensation to customers was a possibility, it added. Both Mitsubishi and the transport ministry declined to comment on the report. Shares in the automaker slipped 0.8 per cent in early trade. Japan's sixth-largest automaker has been struggling to recover after admitting in April that it had falsified the fuel economy on two of its minivehicle models, along with two similar models produced for Nissan Motor Co. The scandal led to a suspension of sales for nearly three months, and prompted a slump in Mitsubishi`s market value. The company sought financial assistance from Nissan, which agreed to buy a controlling one-third stake for $2.2 billion. An internal investigation has uncovered poor communication, slack governance and pressure on resource-starved engineers as the root of Mitsubishi's problems. Mitsubishi said last month that the resulting slump in domestic sales led to a 75 per cent plunge in first-quarter operating profit, while the company said it booked an extraordinary loss of 125.9 billion Yen ($1.24 billion) in the first quarter as a result of the cheating. (Reuters)