Archive for the ‘Lawsuits/Legal’ Category

Ghosn Affair Hits Nissan’s Bottom Line, Along with Weak Sales

Automaker downgrades future earnings forecast.

by on Feb.12, 2019

Nissan is taking an $83.2 million charge against earnings due to the scandal surrounding Carlos Ghosn.

Nissan Motor Co. warned that its earnings for the fiscal year ending March 31, could be about the lowest the carmaker has seen in six years.

Nissan now expects to earn 410 billion yen, or $3.7 billion, for the fiscal year, a 45% year-over-year decline. It originally projected a 500 billion yen, or $4.5 billion profit.

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The second-largest of the Japanese automakers put most of the blame on sliding sales in the U.S. and China, its two largest markets. But it also revealed that it has logged an $83.2 million charge related to the scandal that began with the arrest last November of its former Chairman Carlos Ghosn. (more…)

Ghosn Reimbursing Renault €50,000 for Wedding Expenses

Former CEO said he didn't know Renault paid for Versailles chateau.

by on Feb.08, 2019

Carlos Ghosn is reimbursing Renault €50,000 for expenses related to his 2016 wedding.

Former Renault-Nissan-Mitsubishi Chairman and CEO Carlos Ghosn is reimbursing Renault €50,000 for a bill the automaker incurred for the use of a chateau at the Palace of Versailles for Ghosn’s lavish wedding in 2016.

Ghosn, who is being detained in Japan and being investigated by French automaker Renault for financial misdeeds, said he was unaware that use of the facility was paid for by Renault. He believed the use of the chateau was part of Renault’s donation to the estate.

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French newspaper Le Figaro reported that Versailles allowed Ghosn to host his 2016 wedding reception on the palace grounds in exchange for Renault’s €2.3 billion donation.  (more…)

First Drive: 2019 Chevrolet Blazer

Politics, rather than vehicle attribute, could prove the focus for some potential buyers.

by on Feb.04, 2019

The 2019 Chevrolet Blazer RS offers a choice of two engines, front drive or two AWD options.

Everything old is new again, it seems, with all sorts of once-forgotten nameplates rising from the dead. That includes the Chevrolet Blazer which will be rolling back into U.S. showrooms in the coming months.

For those who may remember the Blazer as a classically stocky, body-on-frame SUV, the arrival of the 2019 model could come as a big surprise, however. It’s now taking the form of a sleekly styled, car-based crossover that puts emphasis on the word “sport” and only marginally on the idea of off-roadability.

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A couple days of driving the 2019 Chevrolet Blazer through San Diego and the surrounding countryside proved it to be one of the better new entries for those who will never see anything rougher than a gravel road. But the new ute will have to clear a few obstacles, nonetheless, as it has become the cause célèbre for those upset by Chevy parent General Motors’ decision to close three North American assembly plants this year.

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“Plot and Treason” Brought Down Ghosn, Jailed Execs Claims

Former Nissan chairman said claims were concocted for “purpose of getting rid of me.”

by on Jan.30, 2019

Former Renault-Nissan Chief Carlos Ghosn said his arrest and detention is due to "plot and treason."

“Plot and treason get the blame” for the arrest of Nissan’s former chairman Carlos Ghosn, the 64-year-old executive said during his first public comments since being dragged off his corporate jet on Nov. 19.

Ghosn has been held in solitary confinement ever since and looked gaunt during a court hearing earlier this month. Japanese prosecutors have successfully argued against bail for the exec, even though co-defendant Greg Kelly was released on Christmas Day.

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Until now, Ghosn has only been allowed to meet with his lawyers, embassy officials and prosecutors who were interrogating him daily and trying to get him to sign a confession written in Japanese, a language Ghosn does not speak. (more…)

Sweden Approves Volvo JV for Autonomous Car Testing

Zenuity ready to put software to real-world test.

by on Jan.30, 2019

Zenuity, a Volvo Cars joint venture with Veoneer, received approval from the Swedish government to begin autonomous testing on public roads.

A Volvo Cars joint venture has gotten approval to test its software in self-driving cars on Swedish highways at speeds of up to 80 kilometers or 60 miles per hour.

Zenuity, a joint venture between Volvo and Swedish tech company Veoneer, developed software for Level 4 autonomous driving that will be tested in a Volvo car by trained drivers with their hands off the steering wheel. The venture is striving to keep up with rivals in the U.S. and China in the development self-driving vehicles.

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Volvo’s self-driving effort was side-swiped last year when one of its sport utility vehicles, which was being used as a test-bed for Uber’s self-driving venture, was involved in an accident that killed an Arizona pedestrian. A post-accident investigation showed that the advanced-driver assistance features on the Volvo test vehicle had been disabled. (more…)

Nissan Troubles Escalate As SEC Launches Pay Probe

France says Ghosn shouldn’t get “exorbitant” payout.

by on Jan.28, 2019

Carlos Ghosn, former CEO of the Renault-Nissan-Mitsubishi Alliance, and his case in Japan has triggered an investigation by the SEC in the U.S.

Nissan says it is facing a probe by the SEC looking into the accuracy of its executive pay disclosures, a probe stemming from the arrest of former Nissan Motor Co. Chairman Carlos Ghosn last November in Japan.

The former executive has been held since Nov. 19, in the Tokyo Detention Center on multiple charges, including allegations that he failed to disclose about $88 million in income. Nissan has also been charged by Japanese prosecutors in connection with the alleged scheme.

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“We have received an inquiry and are cooperating fully,” the automaker said in a statement e-mailed to TheDetroitBureau.com that added, “We cannot provide further details.” (more…)

Nissan CEO Saikawa to Resign to Improve Alliance

No timetable set for his departure.

by on Jan.25, 2019

Nissan CEO Hiroto Saikawa plans to resign in the near future to ease the tensions between Renault and Nissan.

Nissan CEO Hiroto Saikawa plans to step down from his post now that Carlos Ghosn has resigned as chairman and CEO of Renault. The move is designed to make the transition into the next phase of the partnership between Nissan and Renault easier.

Ghosn, who has been in jail on financial corruption charges, resigned two days ago after the French government began to apply pressure to Renault’s governing board to replace him. In the wake of his arrest last November, Ghosn was fired from his position as chairman of Nissan and Mitsubishi.

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Saikawa, a former Ghosn protégé, is thought to have played a critical role in bringing the charges leveled against Ghosn to authorities, hoping to use the case to leverage greater autonomy from Renault, as TheDetroitBureau.com previously reported. The French company holds a controlling 43.4% stake in its alliance partner and has been exploring the idea of merging the two manufacturers entirely. (more…)

Government Shutdown May Hurt Automakers Soon

FCA delayed intro of new Ram 3500 HD due to EPA closure.

by on Jan.25, 2019

FCA CEO Mike Manley said the government shutdown is delaying the sale of the new Ram 3500 HD.

The government shutdown is now in its 34thday. The longest-ever shutdown has impacted 800,000 government employees, making it difficult for them to pay bills, buy groceries and meet day-to-day financial obligations.

The ongoing fight between President Donald Trump and Democrats has also impacted the public at-large through longer lines at airports, closure of National Parks and the delay of at least one new vehicle model.

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Environmental Protection Agency employees are part of the shutdown, including those responsible for performing the various tests necessary for new vehicle models in the EPA labs in Ann Arbor, Michigan. Without the certifications, the vehicles don’t meet federal regulations and cannot be sold. (more…)

Renault Replaces Ghosn as He Languishes in Tokyo Jail

But Ghosn could get millions – when freed – for leaving company voluntarily.

by on Jan.24, 2019

Jean-Dominique Senard, left, and Thierry Bollore are Renault's new chairman and CEO respectively.

Renault has moved ahead and named both a new chairman and a new CEO, replacing Carlos Ghosn who continues to be held in a Tokyo jail on financial corruption charges.

Jean-Dominique Senard will serve as the French automaker’s new chairman, while Thierry Bollore, a long-time lieutenant of Ghosn’s will become its new CEO. The appointments came just hours after Ghosn formally tendered his resignation as Renault’s chief. Renault and its top shareholder, the French government, had, until recently, stood behind Ghosn despite his arrest in Japan, but the latest move reflects the likelihood the 64-year-old executive won’t be released anytime soon.

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Ghosn was arrested on Nov. 19, shortly after his corporate jet touched down at Tokyo’s Haneda Airport. He has been accused of multiple crimes, including concealing as much as $88 million in income. But he could stand to earn millions more as a result of his decision to voluntarily resign from Renault, according a Bloomberg report. (more…)

Ghosn Denied Bail, Now in 3rd Month of Detention

Court offers no explanation; family plans appeal.

by on Jan.22, 2019

Carlos Ghosn's bid to secure bail failed. He remains in Japanese custody.

More than two months after he was whisked off a corporate jet and taken to a detention center in Tokyo, former Nissan Chairman Carlos Ghosn will remain in custody as he faces multiple charges of corruption, a Japanese court has ruled.

The 64-year-old executive offered to wear an ankle monitor, hire security guards and take other steps if released on bail, but the Tokyo District Court went along with prosecutors who demanded that Ghosn remain in custody. His family now plans an appeal.

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There is a growing likelihood that the once high-flying executive could remain in custody until his trial begins, something that may not happen for six months or more, according to his lawyer, former Japanese prosecutor Motonari Ohtsuru. The court offered no explanation for its decision on Monday but at a previous hearing on Jan. 8, it indicated concerns that Ghosn might try to flee the country or take steps to destroy evidence. (more…)