Archive for the ‘Lawsuits/Legal’ Category

Ghosn To Be Detained 10 Days; Crisis Straining Renault-Nissan Alliance

Penalty could include 10-year prison sentence.

by on Nov.21, 2018

Carlos Ghosn could remain in jain for as long as 10 days. The crisis is putting a strain on the Renault-Nissan Alliance.

Carlos Ghosn, the chairman of Nissan Motor Co., could spend as much as 10 days under detention after being arrested by Japanese authorities early this week for alleged financial misdeeds, according to news reports from Tokyo.

The 64-year-old executive, long one of the most respected leaders in the global auto industry, faces the prospect of being fired this week by Nissan’s board which is set to meet at company headquarters in Yokohama. However, the board of Renault SA, the Nissan alliance partner where Ghosn served as CEO, declined to dismiss Ghosn, at least for the time being, while details of his alleged crimes have yet to be fully disclosed.

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The crisis is putting a strain on the nearly two decade-old relationship between Nissan and Renault, as well as smaller Mitsubishi, the automaker in which Nissan purchased a controlling stake two years ago. Together, the three manufacturers cooperate as the Renault-Nissan-Mitsubishi Alliance coordinating everything from parts purchasing to vehicle manufacturing, though they remain independent entities. (more…)

Carlos Ghosn, Renault-Nissan Savior, Could Bring Their Alliance Tumbling Down

Under arrest in Japan, 64-year-old exec likely to lose his many titles, too.

by on Nov.20, 2018

Carlos Ghosn remains Renault CEO — for now. Company officials appear to allowing the legal process to play out.

It took Carlos Ghosn two decades to transform three independent automakers into one of the world’s best-selling automotive alliances, but with the 64-year-old executive now sitting a Japanese jail, accused of a variety of financial misdeeds, that empire could come crashing down.

On Monday, Nissan broke its silence after completing a months-long investigation it said was “based on a whistleblower report.” Ghosn and another senior executive were arrested as they arrived in Japan from alliance partner Renault’s headquarters in France. The Brazilian-born Ghosn was accused of under-reporting his corporate income by as much as $45 million, while also misappropriating corporate funds.

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“I feel strong anger and disappointment,” Ghosn’s handpicked successor as Nissan CEO Hiroto Saikawa told reporters at Nissan headquarters in Yokohama. “I am very sorry.” (more…)

New NAFTA Faces Tough Road to Approval in Congress

Dems want tougher rules on Mexico, Reps want LGBT protections out.

by on Nov.19, 2018

President Donald Trump's success to NAFTA is facing serious trouble with Democrats and Republicans and may not get passed in its current form.

The new trade agreement with Canada and Mexico that President Donald Trump hailed as a major breakthrough back in August appears headed for serious trouble.

Forty Congressional Republicans have stated they will not vote for the agreement because it includes protections for the LGBT community, according to Politico. The protection for the LGBT community was included in the proposed tentative NAFTA 2.0 at the insistence of negotiators from Canada.

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The Republicans are the majority party in the U.S. House of Representatives, but campaign means the LGBT section means that the Trump administration cannot pass NAFTA 2.0 without Democratic votes. (more…)

Carlos Ghosn Fired by Nissan, Reportedly Arrested for Misconduct

Investigation triggered by whistleblower, automaker confirms.

by on Nov.19, 2018

Nissan Chairman Carlos Ghosn was arrested Japan as part of an investigation about falsifying income and misusing company assets.

One of the most visible faces of the global auto industry has been fired and reportedly arrested, Nissan Chairman Carlos Ghosn accused of financial misconduct.

Once so popular after helping save the then-struggling automaker, Ghosn inspired a widely read Japanese comic book. But on Monday, Tokyo media reported, he was brought in before Japanese prosecutors who are questioning the executive about claims he both falsified income statements and misused company assets. A second senior executive is also facing allegations of corruption.

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“Based on a whistleblower report, Nissan Motor Co., Ltd. (Nissan) has been conducting an internal investigation over the past several months regarding misconduct involving the company’s Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly,” the automaker said in a statement. (more…)

Advanced Driving Systems Can Be Misleading and Don’t Always Work as Promised

Autopilot, ProPilot, Pilot Assist, names can confuse motorists expecting full autonomy.

by on Nov.16, 2018

This Model X crash reveals the short comings of Autopilot and, potentially, other similarly named advanced driver assistance systems.

Soon after Tesla first introduced its Autopilot system in October 2014, videos began popping up on YouTube showing owners doing things like jumping into the back seat while their cars cruised down the highway. Even Tesla CEO Elon Musk was shown in his Model S sedan, hands out of the window, rather than on the steering wheel.

After a couple high-visibility crashes, Tesla now takes pain to make sure its owners know Autopilot isn’t a fully autonomous system – at least not yet. But not everyone seems to be getting the message. And it’s not just Tesla. With Nissan adding ProPilot Assist to some new models and Volvo opting for Pilot Assist.

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The new car market is experiencing a flood of new advanced driver assistance systems, or ADAS, that claim to help drivers stay in their lanes, brake automatically, and even change lanes by simply tapping the turn signal. But testing by AAA finds that many of these systems don’t work as promised – at least all the time. And, worse, the names manufacturers have chosen may lead to a false sense of security, some motorists believing these systems can but drive all but fully autonomously. (more…)

Automakers on Edge Over Possibility of New Tariffs

Commerce Dept. findings key to Trump administration's plans.

by on Nov.14, 2018

Commerce Secretary Wilbur Ross is leading the Section 232 investigation into whether or not imported automobiles and parts represent a threat to the United States.

While the U.S. midterm elections have passed, carmakers are waiting on a final decision from the Trump administration on the Section 232 investigation. Section 232 of the Trade Expansion Act of 1962 allows the White House to use national security grounds to impose tariffs on vehicles and auto parts imported into the U.S.

The industry’s lobbyists have said they were expecting the U.S. Department of Commerce, which is responsible for the investigation, to issue its ruling soon, perhaps this week well ahead of the February deadline fixed by the statute. The general assumption is the report will offer Trump a chance to impose new tariffs on autos and auto parts made in Europe and Asia.

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The 232 query has become a major issue for the Japanese government of Shinzo Abe, which has spent weeks trying to defuse the administration’s threat to impose tariffs that could have a major impact on the Japanese auto industry. (more…)

Faraday Future Insists it Isn’t Going Away

New plan calls for leaner management, second product, even an IPO – if it can stay in business long enough.

by on Nov.14, 2018

In better days: Jia Yueting and Nick Sampson, helped unveil the FF91 at the 2016 CES.

Only a matter of weeks ago, battery-carmaker Faraday Future seemed ready to turn out the lights, co-founder Nick Sampson resigning and then declaring in a blog post that the company was “effectively insolvent.” But, despite a seemingly endless series of crises, including one that forced it to cancel a planned assembly plant in Nevada, Faraday’s new management team continue to project a surprisingly bullish take on their future.

Late Tuesday, in fact, the California-based company released a statement outlining its plans for the future, which included a new, “lean management” structure, and “fortified product plans” that not only include the original FF91 supercar but a second, more mainstream crossover.

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Of course, there is the minor issue of finding the necessary cash. Faraday’s latest crisis was kicked off when China’s Evergrande Health Industry Group backed out of a deal that was supposed to generate as much as $2 billion in capital. For the moment, the automaker says it is on the hunt for $500 million to get it back on track.

(more…)

Former Tesla Employee Allegedly Embezzled $9.3M from EV Maker

Parulekar allegedly used suppliers to abscond with cash.

by on Nov.12, 2018

A former Tesla employee allegedly embezzled $9.3 million from the company.

A former Tesla Inc. executive was indicted by a federal grand jury indicted for allegedly embezzling $9.3 million by impersonating an employee at a supplier.

According the indictment, Salil Parulekar got Tesla to send money owed to one supplier to another supplier. Once the money was moved, by impersonating an employee at that company he shifted the money into his account.

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Parulekar, who worked for Tesla for four years until 2017, was responsible for overseeing Tesla’s relationship with certain suppliers for various parts and services related to the company’s electric vehicles, according to the Justice Department. (more…)

Denholm Replaces Musk as Tesla Chairman

Appointment could be temporary, as Musk can regain post after three years.

by on Nov.08, 2018

Australian Robyn Denholm will succeed Elon Musk as Tesla's chairman, though he remains CEO.

Australian Robyn Denholm is Tesla’s new chairman, replacing Elon Musk as head of the board of directors following a settlement with the Securities and Exchange Commission that forced the South African-born exec to relinquish his role.

Musk, who will remain chief executive officer of the battery-carmaker, can attempt to regain the chairman’s post, as well, after a three-year hiatus mandated by the SEC settlement. The agreement was reached after the government accused the 47-year-old of lying to investors when, last August, he declared that he had arranged funding to take Tesla private.

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The move will position Denholm as one of the highest-ranking female executives in the auto industry, with General Motors’ Mary Barra the only other woman serving as chairman of a major car manufacturer. Denholm had already been serving as an independent director on the Tesla board since 2014. There is one other woman on the board. (more…)

More UAW, FCA Officials Sentenced in Bribery Scandal

Borman declared no leniency for defendants.

by on Nov.07, 2018

The UAW long tried to maintain a squeaky clean reputation, but the scandal has sorely tarnished its image.

Two former Fiat Chrysler Automobile N.V. officials and one former leader of the United Auto Workers have been sentenced to prison terms, ranging from 12 months to 15 months, for their part in a conspiracy to violate federal labor law.

The sentences imposed on FCA’s Michael Brown and Jerome Durden as well as the UAW’s Keith Mickens come more than two years after the federal government announced indictments triggered by a scheme in which FCA officials used subterfuge to bribe union officials in a bid to secure labor peace.

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Former FCA Vice President Alphons Iacobelli, a central figure in the case, was sentenced to five and a half years in a federal prison, while Monica Morgan, the widow of former UAW VP General Holiefield, one of the central figures in the scheme, was sentenced to 18 months prison earlier this year after pleading guilty to federal tax charges.

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