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Report Nissan's Carlos Ghosn to be arrested by Japan authorities for alleged financial violations
hoffmeister_fan
Kraftwagen König
Man, i used to love early Michael Keaton movies, this and Mr. Mom had me chuckling.
SCOTT27
Lap Time Luminary
Night Shift is good too.
hoffmeister_fan
Kraftwagen König
Been meaning to check that out as I've been told it's good fun.
Soup
Premium
Nissan's Carlos Ghosn reportedly used car maker's money to buy personal homes, pay sister
Nissan's Carlos Ghosn reportedly used car maker's money to buy personal homes, pay sister
Ousted Nissan Motor Co. chairman Carlos Ghosn reportedly used the Japanese automaker's money to buy personal homes in Rio de Janeiro and Beirut and to pay his sister for consulting jobs she did not perform.
Nissan voted Thursday to remove Ghosn from his chairman post, which he had held since June 2001. Ghosn was arrested Monday in Tokyo on suspicion of falsifying financial reports and other corporate misconduct.
Nissan's internal investigation charged Ghosn with under-reporting his income over many years and for using company capital and expenses for personal use.
Details about some of that alleged misconduct are beginning to emerge. The Wall Street Journal has reported that Ghosn used company funds to buy a condominium in Rio de Janeiro and a house in Beirut, citing an unnamed person familiar with Nissan's investigation.
A French citizen born in Brazil, Ghosn, 64, grew up in Lebanon. Nissan provided Ghosn with six houses, including residences in Tokyo and New York, Bloomberg reported, citing a company official who asked not to be identified. The other two homes were in Paris and Amsterdam, Japanese public broadcaster NHK reported.
Mr. Ghosn’s family believed that his residences were corporate housing and that their purchase went through the normal approval channels at Nissan, according to The Wall Street Journal, which cited a person familiar with the Ghosn family.
Ghosn is also suspected of paying his older sister as much as $100,000 annually, a total of $1.7 million over the years, for an advisory contract, although she did no work for the company, Japanese newspaper The Asahi Shimbun reported.
In one instance, Ghosn's sister got $60,000 for advising on the housing in Rio de Janeiro, the Journal reported.
He is suspected of under-reporting $44.6 million in income from 2011 to 2015, according to Tokyo prosecutors.
Also arrested was Greg Kelly, another Nissan executive, who the automaker said in its statement Thursday "has been determined to be the mastermind of this matter, together with" Ghosn. Kelly was also dismissed from his post as representative director.
Ghosn and Kelly will remain on Nissan’s board for now as that decision will be up to shareholders. No date has been set yet for a shareholders meeting.
The scandal goes beyond Nissan. A major international figure in the auto industry, Ghosn is chairman and CEO of the Renault-Nissan-Mitsubishi alliance, as well as chairman of Mitsubishi and chairman and CEO of Renault.
Ghosn served as Nissan’s chief executive from 2001 until last year. He became chief executive of Renault in 2005, leading the two automakers simultaneously. In 2016, he also became chairman of Mitsubishi Motors Corp. after Nissan took it into the alliance.
Renault's acting chief deputy CEO Thierry Bollore, who spoke publicly Thursday night for the first time since Ghosn was sidelined, said the French automaker still plans to release several new models next year.
Acknowledging the “particular situation” the company is in, he pledged his “full commitment” to Renault’s 180,000 workers and its partners and customers. Renault’s board decided not to fire Ghosn, instead installing temporary leadership.
The French government, which owns 15 percent of Renault, is also worried. French Finance Minister Bruno Le Maire said Thursday that France has yet to receive information from Japan about what Ghosn is accused of and insisted on “respect for the presumption of innocence.”
Le Maire told The Associated Press “this turbulence shouldn’t weaken” the Renault-Nissan alliance or its hundreds of thousands of jobs.
Mitsubishi Motors Corp., plans to hold a board meeting next week.
Since his arrest Monday, Ghosn has been held at a Tokyo detention center, under the same Spartan conditions as other detainees, Tokyo deputy prosecutor Shin Kukimoto told reporters Thursday. He gave few details about the case.
Under Japanese law, suspects can be held for 20 days per possible charge without an official indictment.
Additional charges can be tagged on, resulting in longer detentions. Neither has been charged so far.
The maximum penalty upon conviction for violating finance and exchange laws is 10 years in prison, a 10 million yen ($89,000) fine, or both.
Analysts say the future of Nissan’s alliance with Renault may be at stake, though Nissan’s statement Thursday said the company’s leadership was determined to minimize the impact from Ghosn’s case on the partnership. Renault owns 43 percent of Nissan, and Nissan owns 15 percent of Renault.
The economy ministers of Japan and France met in Paris on Thursday to discuss the issue and released a statement saying both sides are committed to supporting the alliance.
Nissan said its board will study setting up a third-party committee to beef up governance in management and compensation at Nissan.
Nissan's Carlos Ghosn reportedly used car maker's money to buy personal homes, pay sister
Ousted Nissan Motor Co. chairman Carlos Ghosn reportedly used the Japanese automaker's money to buy personal homes in Rio de Janeiro and Beirut and to pay his sister for consulting jobs she did not perform.
Nissan voted Thursday to remove Ghosn from his chairman post, which he had held since June 2001. Ghosn was arrested Monday in Tokyo on suspicion of falsifying financial reports and other corporate misconduct.
Nissan's internal investigation charged Ghosn with under-reporting his income over many years and for using company capital and expenses for personal use.
Details about some of that alleged misconduct are beginning to emerge. The Wall Street Journal has reported that Ghosn used company funds to buy a condominium in Rio de Janeiro and a house in Beirut, citing an unnamed person familiar with Nissan's investigation.
A French citizen born in Brazil, Ghosn, 64, grew up in Lebanon. Nissan provided Ghosn with six houses, including residences in Tokyo and New York, Bloomberg reported, citing a company official who asked not to be identified. The other two homes were in Paris and Amsterdam, Japanese public broadcaster NHK reported.
Mr. Ghosn’s family believed that his residences were corporate housing and that their purchase went through the normal approval channels at Nissan, according to The Wall Street Journal, which cited a person familiar with the Ghosn family.
Ghosn is also suspected of paying his older sister as much as $100,000 annually, a total of $1.7 million over the years, for an advisory contract, although she did no work for the company, Japanese newspaper The Asahi Shimbun reported.
In one instance, Ghosn's sister got $60,000 for advising on the housing in Rio de Janeiro, the Journal reported.
He is suspected of under-reporting $44.6 million in income from 2011 to 2015, according to Tokyo prosecutors.
Also arrested was Greg Kelly, another Nissan executive, who the automaker said in its statement Thursday "has been determined to be the mastermind of this matter, together with" Ghosn. Kelly was also dismissed from his post as representative director.
Ghosn and Kelly will remain on Nissan’s board for now as that decision will be up to shareholders. No date has been set yet for a shareholders meeting.
The scandal goes beyond Nissan. A major international figure in the auto industry, Ghosn is chairman and CEO of the Renault-Nissan-Mitsubishi alliance, as well as chairman of Mitsubishi and chairman and CEO of Renault.
Ghosn served as Nissan’s chief executive from 2001 until last year. He became chief executive of Renault in 2005, leading the two automakers simultaneously. In 2016, he also became chairman of Mitsubishi Motors Corp. after Nissan took it into the alliance.
Renault's acting chief deputy CEO Thierry Bollore, who spoke publicly Thursday night for the first time since Ghosn was sidelined, said the French automaker still plans to release several new models next year.
Acknowledging the “particular situation” the company is in, he pledged his “full commitment” to Renault’s 180,000 workers and its partners and customers. Renault’s board decided not to fire Ghosn, instead installing temporary leadership.
The French government, which owns 15 percent of Renault, is also worried. French Finance Minister Bruno Le Maire said Thursday that France has yet to receive information from Japan about what Ghosn is accused of and insisted on “respect for the presumption of innocence.”
Le Maire told The Associated Press “this turbulence shouldn’t weaken” the Renault-Nissan alliance or its hundreds of thousands of jobs.
Mitsubishi Motors Corp., plans to hold a board meeting next week.
Since his arrest Monday, Ghosn has been held at a Tokyo detention center, under the same Spartan conditions as other detainees, Tokyo deputy prosecutor Shin Kukimoto told reporters Thursday. He gave few details about the case.
Under Japanese law, suspects can be held for 20 days per possible charge without an official indictment.
Additional charges can be tagged on, resulting in longer detentions. Neither has been charged so far.
The maximum penalty upon conviction for violating finance and exchange laws is 10 years in prison, a 10 million yen ($89,000) fine, or both.
Analysts say the future of Nissan’s alliance with Renault may be at stake, though Nissan’s statement Thursday said the company’s leadership was determined to minimize the impact from Ghosn’s case on the partnership. Renault owns 43 percent of Nissan, and Nissan owns 15 percent of Renault.
The economy ministers of Japan and France met in Paris on Thursday to discuss the issue and released a statement saying both sides are committed to supporting the alliance.
Nissan said its board will study setting up a third-party committee to beef up governance in management and compensation at Nissan.
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Carlos Ghosn's life under arrest: No VIP treatment for Nissan chairman
Carlos Ghosn's life under arrest: No VIP treatment for Nissan chairman
TOKYO -- Nissan Motor Co. Chairman Carlos Ghosn is in custody in Tokyo after his arrest this week for alleged financial improprieties. Japanese prosecutors have been very tight-lipped about details of their investigation. But on Thursday they confirmed Ghosn is not getting VIP treatment and is subject to the same Spartan conditions faced by any other detainee in Japan. A look at what is known about Ghosn's situation:
Q: WHERE IS GHOSN?
A: Prosecutors say Ghosn is detained at the Tokyo Detention House, a 12-story building in downtown Tokyo's Katsushika district. About 3,000 people, mostly pre-trial suspects, defendants and some death row inmates, are held there. It is one of Japan's eight detention centers. The facility's gallows were used in July to hang cult leader Shoko Asahara, the mastermind of a Tokyo subway gassing and other crimes.
Q: WHAT IS LIFE LIKE IN DETENTION?
A: Officials say Ghosn has met with officials from the French Embassy and a lawyer. Under Japan's criminal justice procedures, his counsel is not allowed to attend questioning by prosecutors. Tokyo deputy prosecutor Shin Kukimoto said Ghosn is being treated just like any other detainee, with about eight hours of sleep and three simple meals a day.
Q: WHAT ARE INTERROGATIONS LIKE IN JAPAN?
A: Kukimoto said Ghosn is being questioned for several hours a day in a room with prosecutors and a translator. He gave no further details and would not say if Ghosn has acknowledged the allegations. Japanese investigators once were notorious for lengthy, tough interrogations of suspects denied contact with their lawyers. Conditions have improved in recent years with increased awareness of human rights standards.
Q: WHAT ARE THE ALLEGATIONS AGAINST GHOSN AND POSSIBLE PENALTIES?
A: Ghosn, who was arrested with Nissan representative director Greg Kelly, is suspected of violating financial reporting laws which carry a maximum penalty of up to 10 years in prison or a fine up to 10 million yen ($89,000) if he is convicted. Some Japanese media accounts describe a conspiracy to hide up to $71 million in compensation from the company and Japanese authorities.
Q: WHAT'S NEXT?
A: Wednesday's court approval of 10-day detention allows prosecutors to keep Ghosn through Nov. 30. They could extend that by another 10 days before having to decide whether to indict him, though they could add new allegations and win more time — 20 days per charge. He is unlikely to be released on bail anytime soon.
Carlos Ghosn's life under arrest: No VIP treatment for Nissan chairman
TOKYO -- Nissan Motor Co. Chairman Carlos Ghosn is in custody in Tokyo after his arrest this week for alleged financial improprieties. Japanese prosecutors have been very tight-lipped about details of their investigation. But on Thursday they confirmed Ghosn is not getting VIP treatment and is subject to the same Spartan conditions faced by any other detainee in Japan. A look at what is known about Ghosn's situation:
Q: WHERE IS GHOSN?
A: Prosecutors say Ghosn is detained at the Tokyo Detention House, a 12-story building in downtown Tokyo's Katsushika district. About 3,000 people, mostly pre-trial suspects, defendants and some death row inmates, are held there. It is one of Japan's eight detention centers. The facility's gallows were used in July to hang cult leader Shoko Asahara, the mastermind of a Tokyo subway gassing and other crimes.
Q: WHAT IS LIFE LIKE IN DETENTION?
A: Officials say Ghosn has met with officials from the French Embassy and a lawyer. Under Japan's criminal justice procedures, his counsel is not allowed to attend questioning by prosecutors. Tokyo deputy prosecutor Shin Kukimoto said Ghosn is being treated just like any other detainee, with about eight hours of sleep and three simple meals a day.
Q: WHAT ARE INTERROGATIONS LIKE IN JAPAN?
A: Kukimoto said Ghosn is being questioned for several hours a day in a room with prosecutors and a translator. He gave no further details and would not say if Ghosn has acknowledged the allegations. Japanese investigators once were notorious for lengthy, tough interrogations of suspects denied contact with their lawyers. Conditions have improved in recent years with increased awareness of human rights standards.
Q: WHAT ARE THE ALLEGATIONS AGAINST GHOSN AND POSSIBLE PENALTIES?
A: Ghosn, who was arrested with Nissan representative director Greg Kelly, is suspected of violating financial reporting laws which carry a maximum penalty of up to 10 years in prison or a fine up to 10 million yen ($89,000) if he is convicted. Some Japanese media accounts describe a conspiracy to hide up to $71 million in compensation from the company and Japanese authorities.
Q: WHAT'S NEXT?
A: Wednesday's court approval of 10-day detention allows prosecutors to keep Ghosn through Nov. 30. They could extend that by another 10 days before having to decide whether to indict him, though they could add new allegations and win more time — 20 days per charge. He is unlikely to be released on bail anytime soon.
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Carlos Ghosn faces Mitsubishi sack as more allegations surface
Carlos Ghosn faces Mitsubishi sack as more allegations surface
Ghosn has not been formally charged and denies the allegations, telling prosecutors he had no intention of under-declaring his compensation.
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 percent 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".
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
Ghosn has not been formally charged and denies the allegations, telling prosecutors he had no intention of under-declaring his compensation.
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 percent 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".
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.
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The Protestant ethic and Carlos Ghosn | The Japan Times
The Protestant ethic and Carlos Ghosn
Carlos Ghosn is gone! His departure from the chairmanship of Nissan and Mitsubishi Motors, however, is still rocking Tokyo. Throughout the past week, Japan’s mainstream media carried, day and night, stories about the poor Lebanese-Brazilian-French corporate executive, who in 2002 was awarded Asia’s Businessman of the Year by Fortune magazine.
For many in Tokyo the news was a shock but not a surprise. Yes, when he first came to Tokyo in 1999, Ghosn surprised ordinary Japanese by revolutionizing the way Nissan did its business as well as by making several million dollars a year — far more than the average executive pay at big Japanese corporations.
However, we do not consider the huge amount of money Ghosn makes as outrageous anymore. What was shocking to us is the amount of money — approximately ¥5 billion — that he allegedly underreported since 2014. Ghosn also reportedly used corporate money to buy residences in the Netherlands and three other countries.
Ghosn was also criticized for allegedly having Nissan pay $100,000 a year to his sister for advisory services that she never provided, and fund his family’s private trips and dining. We were shocked because a great businessman like Ghosn did not keep his private considerations separate from his public life — not by the size of his annual income.
I was appalled, therefore, by the stereotypical views of some Western pundits in Tokyo and abroad, such as that “Nissan’s closed Japan Inc. elements carried out a coup against their skillful but ‘gaijin‘ chairman. No talented foreign executives will come to Tokyo.” Those ignorant observers fail to comprehend what really happened.
The memories of those pundits, like those of U.S. President Donald Trump, are those of the 1980s, when many people thought that “xenophobic” Japan Inc. would not accept anything alien to the culture and the traditions of the indigenous society, which is so closed that the foreigners in Japan are unfairly discriminated against. But they are wrong.
I also doubt media reports in Tokyo that the bad guys were Renault and Ghosn while Nissan was a victim. Ghosn had desperately tried in recent years to bridge the gap and sought an equal alliance between Renault and Nissan, ironically, under his dictatorial governance. Poor Ghosn, trapped in quandary, had to pay a debt of his own.
This entire episode reminds me of the great book written in 1904-05 by Max Weber, a German sociologist. Weber wrote that the capitalism evolved when the Protestant ethic — hard work combined with an ascetic life and saving for the future — influenced traders, merchants, investors and workers in secular Europe.
When I first read Weber’s book, “The Protestant Ethic and the Spirit of Capitalism,” in 1974, I was almost convinced that the only non-European nations which could embody and substantiate the spirit of capitalism that Weber described, must be the United States and Japan. The U.S. is understandable but why Japan? I will give you the reasons.
Weber wrote that Puritan ethics and ideas influenced the development of capitalism, and that the “spirit of capitalism” is not in a metaphysical sense but is rather a set of values: the “spirit of hard work and progress.” Although Japan has no Protestant traditions, it has cultivated similar ascetic work ethics since the 17th century.
The following is my take on Ghosn’s rise and fall:
1. It was not a coup d’etat by Japan, Inc. against a foreign executive. It was a simple business decision. Renault sent Ghosn to help Nissan 20 years ago. Nissan became strong again and now pays huge dividends to Renault. Renault’s plan to take over Nissan through Ghosn, who finally accepted the idea, was unanimously rejected by Nissan’s board members, including two foreigners. Period.
2. Ghosn could not win the hearts and minds of Japanese employees. The Japan Times on Sunday carried an analysis titled “Is greed good? Ghosn and CEO pay.” The article quoted a Waseda University professor of commerce stating, “Ghosn’s first clash with Japan’s unique view on compensation and corporate life began not long after his arrival,” and “if he took more salary, he would have received more criticism, which is certainly one motivation for covering up his real compensation.”
Make no mistakes. Of course, greed is good in Japan, so long as the executives embody the Protestant ethic values of hard work, an ascetic life, saving for the future and service to the community. What was revealed so far about Ghosn’s public and private life irritated many of Nissan’s Japanese employees.
In other words, if Renault really wanted to take over Nissan, they should have sent the right person for that job, someone who could win the hearts and minds of Nissan’s labor force — mostly Japanese employees. If Renault had done that, there would have been no “coup d’etat” against the chairman they sent to Nissan.
3. Carlos Ghosn was a successful but disrespected businessman.
Ghosn, as “Le Cost Killer” or “Mr. Fix It,” could cut costs by measures such as laying off many employees or by introducing new lean-production systems. His dictatorial style of decision-making, though very successful at the beginning, seems to have eventually alienated his Japanese subordinates.
If Ghosn had practiced the Japanese version of “noblesse oblige,” which means, according to Merriam-Webster, “the obligation of anyone who is in a better position than others — due, for example, to high office or celebrity — to act respectably and responsibly,” he could have stayed in Japan longer.
4. Japan will still have to continue to change.
I am always in favor of the transformation of business cultures in Japan. For Japan to survive the rapidly changing international or domestic business environment, it must continue to always review old traditions and to adapt to new and better styles of doing business.
Having said all the above, I hope Japan will continue to uphold the work ethic that it has cultivated for centuries. If we lose the spirit of hard work with an ascetic life, saving for the future and service to the community, we would just be greedy people, like Ghosn.
The Protestant ethic and Carlos Ghosn
Carlos Ghosn is gone! His departure from the chairmanship of Nissan and Mitsubishi Motors, however, is still rocking Tokyo. Throughout the past week, Japan’s mainstream media carried, day and night, stories about the poor Lebanese-Brazilian-French corporate executive, who in 2002 was awarded Asia’s Businessman of the Year by Fortune magazine.
For many in Tokyo the news was a shock but not a surprise. Yes, when he first came to Tokyo in 1999, Ghosn surprised ordinary Japanese by revolutionizing the way Nissan did its business as well as by making several million dollars a year — far more than the average executive pay at big Japanese corporations.
However, we do not consider the huge amount of money Ghosn makes as outrageous anymore. What was shocking to us is the amount of money — approximately ¥5 billion — that he allegedly underreported since 2014. Ghosn also reportedly used corporate money to buy residences in the Netherlands and three other countries.
Ghosn was also criticized for allegedly having Nissan pay $100,000 a year to his sister for advisory services that she never provided, and fund his family’s private trips and dining. We were shocked because a great businessman like Ghosn did not keep his private considerations separate from his public life — not by the size of his annual income.
I was appalled, therefore, by the stereotypical views of some Western pundits in Tokyo and abroad, such as that “Nissan’s closed Japan Inc. elements carried out a coup against their skillful but ‘gaijin‘ chairman. No talented foreign executives will come to Tokyo.” Those ignorant observers fail to comprehend what really happened.
The memories of those pundits, like those of U.S. President Donald Trump, are those of the 1980s, when many people thought that “xenophobic” Japan Inc. would not accept anything alien to the culture and the traditions of the indigenous society, which is so closed that the foreigners in Japan are unfairly discriminated against. But they are wrong.
I also doubt media reports in Tokyo that the bad guys were Renault and Ghosn while Nissan was a victim. Ghosn had desperately tried in recent years to bridge the gap and sought an equal alliance between Renault and Nissan, ironically, under his dictatorial governance. Poor Ghosn, trapped in quandary, had to pay a debt of his own.
This entire episode reminds me of the great book written in 1904-05 by Max Weber, a German sociologist. Weber wrote that the capitalism evolved when the Protestant ethic — hard work combined with an ascetic life and saving for the future — influenced traders, merchants, investors and workers in secular Europe.
When I first read Weber’s book, “The Protestant Ethic and the Spirit of Capitalism,” in 1974, I was almost convinced that the only non-European nations which could embody and substantiate the spirit of capitalism that Weber described, must be the United States and Japan. The U.S. is understandable but why Japan? I will give you the reasons.
Weber wrote that Puritan ethics and ideas influenced the development of capitalism, and that the “spirit of capitalism” is not in a metaphysical sense but is rather a set of values: the “spirit of hard work and progress.” Although Japan has no Protestant traditions, it has cultivated similar ascetic work ethics since the 17th century.
The following is my take on Ghosn’s rise and fall:
1. It was not a coup d’etat by Japan, Inc. against a foreign executive. It was a simple business decision. Renault sent Ghosn to help Nissan 20 years ago. Nissan became strong again and now pays huge dividends to Renault. Renault’s plan to take over Nissan through Ghosn, who finally accepted the idea, was unanimously rejected by Nissan’s board members, including two foreigners. Period.
2. Ghosn could not win the hearts and minds of Japanese employees. The Japan Times on Sunday carried an analysis titled “Is greed good? Ghosn and CEO pay.” The article quoted a Waseda University professor of commerce stating, “Ghosn’s first clash with Japan’s unique view on compensation and corporate life began not long after his arrival,” and “if he took more salary, he would have received more criticism, which is certainly one motivation for covering up his real compensation.”
Make no mistakes. Of course, greed is good in Japan, so long as the executives embody the Protestant ethic values of hard work, an ascetic life, saving for the future and service to the community. What was revealed so far about Ghosn’s public and private life irritated many of Nissan’s Japanese employees.
In other words, if Renault really wanted to take over Nissan, they should have sent the right person for that job, someone who could win the hearts and minds of Nissan’s labor force — mostly Japanese employees. If Renault had done that, there would have been no “coup d’etat” against the chairman they sent to Nissan.
3. Carlos Ghosn was a successful but disrespected businessman.
Ghosn, as “Le Cost Killer” or “Mr. Fix It,” could cut costs by measures such as laying off many employees or by introducing new lean-production systems. His dictatorial style of decision-making, though very successful at the beginning, seems to have eventually alienated his Japanese subordinates.
If Ghosn had practiced the Japanese version of “noblesse oblige,” which means, according to Merriam-Webster, “the obligation of anyone who is in a better position than others — due, for example, to high office or celebrity — to act respectably and responsibly,” he could have stayed in Japan longer.
4. Japan will still have to continue to change.
I am always in favor of the transformation of business cultures in Japan. For Japan to survive the rapidly changing international or domestic business environment, it must continue to always review old traditions and to adapt to new and better styles of doing business.
Having said all the above, I hope Japan will continue to uphold the work ethic that it has cultivated for centuries. If we lose the spirit of hard work with an ascetic life, saving for the future and service to the community, we would just be greedy people, like Ghosn.
tristatez28lt1
Tire Trailblazer
Aren't most CEOs these types of decision makers: Marchionne, Diess, Goshn, Todt...I don't think you have time to make friends and listen to everybody. Your way or the highway.
CrunchSlaughtered
RPM Ruler
Make Nissan Japanese again
This is the phrase that stands behind all the allegations
This is the phrase that stands behind all the allegations
CrunchSlaughtered
RPM Ruler
The question is if it is legal. I am sure that all his steps were made after consulting with a team of lawyers
D
Deleted member 25
This is the typical stuff some japanese would use to justify their ultra rigid system.The Protestant ethic and Carlos Ghosn | The Japan Times
The Protestant ethic and Carlos Ghosn
Carlos Ghosn is gone! His departure from the chairmanship of Nissan and Mitsubishi Motors, however, is still rocking Tokyo. Throughout the past week, Japan’s mainstream media carried, day and night, stories about the poor...
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Wall Street Journal says Carlos Ghosn enduring 'bizarre inquisition' in Japan | The Japan Times
This photo taken in June shows a four-tatami-mat room at the Tokyo Detention House in Tokyo's Katsushika Ward, where ousted Nissan Chairman Carlos Ghosn has been detained.
Wall Street Journal says Carlos Ghosn enduring ‘bizarre inquisition’ in Japan
NEW YORK – Ousted Nissan Motor Co. Chairman Carlos Ghosn is enduring a “bizarre inquisition” in Japan, a Wall Street Journal editorial said Tuesday.
He has been “held in detention for days without being charged, interrogated by prosecutors without a lawyer present, and fired from his post amid media leaks claiming he’s guilty of financial malfeasance,” the U.S. business daily wrote.
“Communist China? No, capitalist Japan, where … Ghosn is enduring a bizarre inquisition,” said the editorial printed in the paper’s Tuesday edition and headlined “The Ghosn Inquisition.”
Japan’s judicial system allows detention of suspects for up to 23 days without charges being filed.
“Such treatment is more appropriate for a yakuza mobster than an international CEO with no previous record of fraud or self-dealing,” the editorial said.
The allegations that he underreported his pay in Nissan securities reports are “odd in that Nissan should long have been aware” of the practice, the article noted.
It indicated that behind the arrest was friction between Nissan and its top shareholder and alliance partner, Renault SA.
“You don’t have to be a conspiracy theorist to look at these events and wonder if they are part of a larger effort to end Mr. Ghosn’s plan to merge Nissan with Renault,” said the editorial.
It added that without more transparency in investigations, “the Nissan ambush will stand as a black mark on Japanese business.”
This photo taken in June shows a four-tatami-mat room at the Tokyo Detention House in Tokyo's Katsushika Ward, where ousted Nissan Chairman Carlos Ghosn has been detained.
Wall Street Journal says Carlos Ghosn enduring ‘bizarre inquisition’ in Japan
NEW YORK – Ousted Nissan Motor Co. Chairman Carlos Ghosn is enduring a “bizarre inquisition” in Japan, a Wall Street Journal editorial said Tuesday.
He has been “held in detention for days without being charged, interrogated by prosecutors without a lawyer present, and fired from his post amid media leaks claiming he’s guilty of financial malfeasance,” the U.S. business daily wrote.
“Communist China? No, capitalist Japan, where … Ghosn is enduring a bizarre inquisition,” said the editorial printed in the paper’s Tuesday edition and headlined “The Ghosn Inquisition.”
Japan’s judicial system allows detention of suspects for up to 23 days without charges being filed.
“Such treatment is more appropriate for a yakuza mobster than an international CEO with no previous record of fraud or self-dealing,” the editorial said.
The allegations that he underreported his pay in Nissan securities reports are “odd in that Nissan should long have been aware” of the practice, the article noted.
It indicated that behind the arrest was friction between Nissan and its top shareholder and alliance partner, Renault SA.
“You don’t have to be a conspiracy theorist to look at these events and wonder if they are part of a larger effort to end Mr. Ghosn’s plan to merge Nissan with Renault,” said the editorial.
It added that without more transparency in investigations, “the Nissan ambush will stand as a black mark on Japanese business.”
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23 days later: Getting arrested in Japan | The Japan Times
23 days later: Getting arrested in Japan
Freedom is easy to take for granted — at least until it is taken away from you without warning.
Carlos Ghosn, then-chairman of the alliance between Nissan Motor Co., Renault SA and Mitsubishi Motors Corp., was arrested on Nov. 19 for alleged financial violations.
Two days later, the Tokyo District Court ordered Ghosn to be held for a further 10 days as prosecutors investigate allegations the 64-year-old underreported his pay package.
Ghosn hasn’t been heard from since, leading some to refer to him in jest as “Carlos the Ghost.”
His arrest provides an opportunity to examine issues relating to the legal process that suspects face once they are taken into custody, where prosecutors have up to 23 days to decide whether or not to press formal charges.
Foreign suspects are more likely to be held in custody for the full term, with prosecutors often believing them to be a flight risk.
Criminal defense attorney Makoto Endo once said that Japan’s criminal courts operate on a presumption of “guilty until proven guilty.” Endo said the goal of the system wasn’t to dispense justice, it was to obtain a conviction.
After an arrest, police officers initially have 48 hours to decide what to do with a suspect. In practice, officers will always fingerprint a suspect and take a statement.
The police could decide not to pursue the case and let a suspect go. They could also release a suspect but still send the case to the prosecutors. More likely, they will continue to detain a suspect and press charges.
The next 24 hours are crucial to any case, with prosecutors using this time to decide whether or not to indict a suspect.
Japan’s criminal justice system is famous for its 99 percent conviction rate, although this figure is only correct insofar as it reflects those who have been indicted. Prosecutors routinely drop around 50 percent of the cases they receive.
“Japan’s prosecutors tend to only take slam-dunk cases,” says David Johnson, author of “The Japanese Way of Justice.”
In that first 24 hours, prosecutors typically ask for a suspect to be held for an additional 10 days to ensure evidence isn’t destroyed or the accused doesn’t flee. The court almost always grants this request.
During this time, prosecutors can question suspects up to eight hours a day with no lawyer present. Many suspects are kept in a cell at a police station, although women in Tokyo usually end up at a police station in Harajuku that has heating and air-conditioning.
Mobile phones and personal belongings are confiscated after an arrest and suspects are not given any access to a computer while in custody. They have no way to communicate with the outside world other than talking to their lawyer or visitors.
Suspects are allowed up to three visitors at once, but only one visit each day. Visits are only granted on weekdays and typically limited to 20 minutes. They are monitored by authorities and conversation during a visit can only be conducted in Japanese.
Suspects are generally allowed to shower every other day. The food served in detention has been described as bland and almost inedible.
If suspects don’t confess within the first 13 days, prosecutors will typically ask for an additional 10 days. Bail is seldom granted.
“A suspect’s lawyer can ask for bail but the request is usually denied unless there’s a confession,” defense attorney Hiroyuki Kawai says. “If a suspect doesn’t confess, prosecutors assume there’s a risk that the suspect will tamper with evidence that would convict them, presuming that they’re guilty in the first place. A confession may get a suspect out earlier, but then they’re certainly going to be prosecuted and convicted.”
At the end of the 23 days, prosecutors must decide whether to indict a suspect or release them.
And even if a suspect is released, the police can re-arrest them on different charges and the 23-day process starts from the beginning.
Such practice is standard in murder cases, where suspects are initially placed in custody on charges of “improperly disposing of a corpse,” interrogated for 23 days, indicted and then re-arrested on homicide charges.
This technique is also used in high-profile corporate cases. Mark Karpeles, former CEO of Mt. Gox, was re-arrested at least twice in 2015 after he refused to confess. He maintained his innocence and is still on trial … three years later.
One wonders which path prosecutors will take in Ghosn’s case. Only time will tell.
Dark Side of the Rising Sun is a monthly column that takes a behind-the-scenes look at news in Japan.
23 days later: Getting arrested in Japan
Freedom is easy to take for granted — at least until it is taken away from you without warning.
Carlos Ghosn, then-chairman of the alliance between Nissan Motor Co., Renault SA and Mitsubishi Motors Corp., was arrested on Nov. 19 for alleged financial violations.
Two days later, the Tokyo District Court ordered Ghosn to be held for a further 10 days as prosecutors investigate allegations the 64-year-old underreported his pay package.
Ghosn hasn’t been heard from since, leading some to refer to him in jest as “Carlos the Ghost.”
His arrest provides an opportunity to examine issues relating to the legal process that suspects face once they are taken into custody, where prosecutors have up to 23 days to decide whether or not to press formal charges.
Foreign suspects are more likely to be held in custody for the full term, with prosecutors often believing them to be a flight risk.
Criminal defense attorney Makoto Endo once said that Japan’s criminal courts operate on a presumption of “guilty until proven guilty.” Endo said the goal of the system wasn’t to dispense justice, it was to obtain a conviction.
After an arrest, police officers initially have 48 hours to decide what to do with a suspect. In practice, officers will always fingerprint a suspect and take a statement.
The police could decide not to pursue the case and let a suspect go. They could also release a suspect but still send the case to the prosecutors. More likely, they will continue to detain a suspect and press charges.
The next 24 hours are crucial to any case, with prosecutors using this time to decide whether or not to indict a suspect.
Japan’s criminal justice system is famous for its 99 percent conviction rate, although this figure is only correct insofar as it reflects those who have been indicted. Prosecutors routinely drop around 50 percent of the cases they receive.
“Japan’s prosecutors tend to only take slam-dunk cases,” says David Johnson, author of “The Japanese Way of Justice.”
In that first 24 hours, prosecutors typically ask for a suspect to be held for an additional 10 days to ensure evidence isn’t destroyed or the accused doesn’t flee. The court almost always grants this request.
During this time, prosecutors can question suspects up to eight hours a day with no lawyer present. Many suspects are kept in a cell at a police station, although women in Tokyo usually end up at a police station in Harajuku that has heating and air-conditioning.
Mobile phones and personal belongings are confiscated after an arrest and suspects are not given any access to a computer while in custody. They have no way to communicate with the outside world other than talking to their lawyer or visitors.
Suspects are allowed up to three visitors at once, but only one visit each day. Visits are only granted on weekdays and typically limited to 20 minutes. They are monitored by authorities and conversation during a visit can only be conducted in Japanese.
Suspects are generally allowed to shower every other day. The food served in detention has been described as bland and almost inedible.
If suspects don’t confess within the first 13 days, prosecutors will typically ask for an additional 10 days. Bail is seldom granted.
“A suspect’s lawyer can ask for bail but the request is usually denied unless there’s a confession,” defense attorney Hiroyuki Kawai says. “If a suspect doesn’t confess, prosecutors assume there’s a risk that the suspect will tamper with evidence that would convict them, presuming that they’re guilty in the first place. A confession may get a suspect out earlier, but then they’re certainly going to be prosecuted and convicted.”
At the end of the 23 days, prosecutors must decide whether to indict a suspect or release them.
And even if a suspect is released, the police can re-arrest them on different charges and the 23-day process starts from the beginning.
Such practice is standard in murder cases, where suspects are initially placed in custody on charges of “improperly disposing of a corpse,” interrogated for 23 days, indicted and then re-arrested on homicide charges.
This technique is also used in high-profile corporate cases. Mark Karpeles, former CEO of Mt. Gox, was re-arrested at least twice in 2015 after he refused to confess. He maintained his innocence and is still on trial … three years later.
One wonders which path prosecutors will take in Ghosn’s case. Only time will tell.
Dark Side of the Rising Sun is a monthly column that takes a behind-the-scenes look at news in Japan.
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Carlos Ghosn arrest lays bare frustration at Nissan
Carlos Ghosn arrest lays bare frustration at Nissan
With Carlos Ghosn's arrest, frustrations over the tycoon's management style have burst into the open within Nissan, with some staff also weary of playing second fiddle to Renault and its French-state backers.
Rumblings within Nissan have grown in intensity since the beginning of the year, analysts say, as the 64-year-old Brazil-born Frenchman appeared to be moving towards a complete merger with Renault that would be unpopular in the Japanese firm.
Renault is the dominant player in the alliance, owning 43 percent of Nissan stock, but the Japanese firm now brings more turnover to the table -- only intensifying a power-struggle between the firms.
One former staff member who worked for Nissan for 10 years told on condition of anonymity: "Internally, we felt the tensions, even if they didn't appear on the outside."
Some Nissan staff increasingly had the impression their hard-won profits were being used to prop up their French ..
For example, there was some resentment when the Nissan Micra was ordered to be built in a Renault factory just outside Paris or when the Nissan Rogue crossover destined for the US market was constructed by a South-Korean Renault subsidiary.
"Bringing services together is wonderful but in practice, it is not that easy. Renault and Nissan people started saying that the integration Ghosn was leading us towards will not work," said the former employee.
Another staff member, speaking to public broadcaster NHK, was even more blunt.
"I don't feel any merit to working with Renault. In my opinion, many Nissan employees feel they don't want to work with Renault," he said.
Ghosn also drew fire with some in Japan for what was perceived as a lavish lifestyle and brash management style -- both of which run counter to Japanese corporate culture.
The staff member cited by NHK complained that Ghosn prohibited employees from receiving gifts or being wined and dined, and that the former chairman had ordered them to submit a written pledge to this effect.
Another former employee told AFP that Ghosn put "incredible" pressure on his staff.
"He humiliated people in public all the time with massive tellings-off in front of everyone. No one could say anything but resentment grew."
Ghosn is under arrest on suspicion of understating his income by around $44 million over five years. He denies the allegations and has not been able to make any public defence as he languishes in a Tokyo detention centre.
Nissan CEO Hiroto Saikawa denounced his former mentor in an emotional press conference, saying that too much power had been concentrated in the hands of one person.
According to a Nissan insider, Saikawa has also raised concerns of governance within the three-way alliance, which was the top-selling auto group last year.
"No matter what subject we wanted to discuss with Renault, we always had to go through Ghosn," Saikawa told staff Monday, according to someone present.
This is an "uneven" situation that must be addressed, added Saikawa.
In many ways, Saikawa's shift in attitude towards Ghosn reflects the wider growing dissatisfaction within Nissan.
Known as one of "Ghosn's children" -- who owed his career to the tycoon -- Saikawa began to distance himself from his mentor in 2017, feeling that Ghosn had left him alone to deal with a vehicle inspection scandal that broke that year.
Adding to tension is the involvement of the French government, which holds a 15-percent stake in Renault.
"France wants Nissan," screamed a headline in the Nikkei business daily in July.
The Japanese firm was badly shaken in 2015 when Emmanuel Macron, then economy minister, raised Paris's stake in Renault to increase voting power.
Current French Economy Minister Bruno Le Maire has stressed that there should be no changes in the make-up of the alliance, which states that Renault appoints the boss.
Koji Endo, an auto sector analyst at SBI Securities, told AFP: "Emotionally, people at Nissan seem to be angry against Renault and Ghosn and they will probably claim there has to be some change in equity relationships."
However, moving towards a more equal relationship will be "very difficult... because of the influence of the French government," added the expert.
Nissan would have to convince Renault and Paris to boost the Japanese firm's stake in the alliance, he noted.
"I understand that Nissan wants to do that, but in reality I don't think it can be done in a short period of time," he told AFP.
The official line is that the Ghosn arrest should not have an impact on the day-to-day operations either at Nissan or within the Alliance.
But another auto sector expert, Takaki Nakanishi, said the situation within the alliance was "serious."
"The confidence to work together has completely disappeared," said Nakanishi.
Carlos Ghosn arrest lays bare frustration at Nissan
With Carlos Ghosn's arrest, frustrations over the tycoon's management style have burst into the open within Nissan, with some staff also weary of playing second fiddle to Renault and its French-state backers.
Rumblings within Nissan have grown in intensity since the beginning of the year, analysts say, as the 64-year-old Brazil-born Frenchman appeared to be moving towards a complete merger with Renault that would be unpopular in the Japanese firm.
Renault is the dominant player in the alliance, owning 43 percent of Nissan stock, but the Japanese firm now brings more turnover to the table -- only intensifying a power-struggle between the firms.
One former staff member who worked for Nissan for 10 years told on condition of anonymity: "Internally, we felt the tensions, even if they didn't appear on the outside."
Some Nissan staff increasingly had the impression their hard-won profits were being used to prop up their French ..
For example, there was some resentment when the Nissan Micra was ordered to be built in a Renault factory just outside Paris or when the Nissan Rogue crossover destined for the US market was constructed by a South-Korean Renault subsidiary.
"Bringing services together is wonderful but in practice, it is not that easy. Renault and Nissan people started saying that the integration Ghosn was leading us towards will not work," said the former employee.
Another staff member, speaking to public broadcaster NHK, was even more blunt.
"I don't feel any merit to working with Renault. In my opinion, many Nissan employees feel they don't want to work with Renault," he said.
Ghosn also drew fire with some in Japan for what was perceived as a lavish lifestyle and brash management style -- both of which run counter to Japanese corporate culture.
The staff member cited by NHK complained that Ghosn prohibited employees from receiving gifts or being wined and dined, and that the former chairman had ordered them to submit a written pledge to this effect.
Another former employee told AFP that Ghosn put "incredible" pressure on his staff.
"He humiliated people in public all the time with massive tellings-off in front of everyone. No one could say anything but resentment grew."
Ghosn is under arrest on suspicion of understating his income by around $44 million over five years. He denies the allegations and has not been able to make any public defence as he languishes in a Tokyo detention centre.
Nissan CEO Hiroto Saikawa denounced his former mentor in an emotional press conference, saying that too much power had been concentrated in the hands of one person.
According to a Nissan insider, Saikawa has also raised concerns of governance within the three-way alliance, which was the top-selling auto group last year.
"No matter what subject we wanted to discuss with Renault, we always had to go through Ghosn," Saikawa told staff Monday, according to someone present.
This is an "uneven" situation that must be addressed, added Saikawa.
In many ways, Saikawa's shift in attitude towards Ghosn reflects the wider growing dissatisfaction within Nissan.
Known as one of "Ghosn's children" -- who owed his career to the tycoon -- Saikawa began to distance himself from his mentor in 2017, feeling that Ghosn had left him alone to deal with a vehicle inspection scandal that broke that year.
Adding to tension is the involvement of the French government, which holds a 15-percent stake in Renault.
"France wants Nissan," screamed a headline in the Nikkei business daily in July.
The Japanese firm was badly shaken in 2015 when Emmanuel Macron, then economy minister, raised Paris's stake in Renault to increase voting power.
Current French Economy Minister Bruno Le Maire has stressed that there should be no changes in the make-up of the alliance, which states that Renault appoints the boss.
Koji Endo, an auto sector analyst at SBI Securities, told AFP: "Emotionally, people at Nissan seem to be angry against Renault and Ghosn and they will probably claim there has to be some change in equity relationships."
However, moving towards a more equal relationship will be "very difficult... because of the influence of the French government," added the expert.
Nissan would have to convince Renault and Paris to boost the Japanese firm's stake in the alliance, he noted.
"I understand that Nissan wants to do that, but in reality I don't think it can be done in a short period of time," he told AFP.
The official line is that the Ghosn arrest should not have an impact on the day-to-day operations either at Nissan or within the Alliance.
But another auto sector expert, Takaki Nakanishi, said the situation within the alliance was "serious."
"The confidence to work together has completely disappeared," said Nakanishi.
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