Nissan Stock Dips 6% After Japan Nabs Chairman for Evading Tax, Embezzling
Yicai Global
/SOURCE : yicai
Nissan Stock Dips 6% After Japan Nabs Chairman for Evading Tax, Embezzling

 (Yicai Global) Nov. 21 -- Tokyo police yesterday arrested Carlos Ghosn, chairman of Yokohama-based Nissan Motor, for allegedly violating Japanese financial laws. His apprehension dragged the Japanese carmaker's share [TYO:7201] price down 6 percent. The stock rallied in today's morning trading, however, clawing back over 1 percent.

Carlos Ghosn, Nissan Motor's chairman, was arrested by Tokyo authorities for violating Japanese financial law yesterday, pushing the company's stock [TYO:7201] price down 6 percent that day, though it rose over 1 percent in today's morning trading.

Ghosn, who is also chairman and chief executive of France's Renault, chief executive and chairman of Japan's Nissan and chairman of the country's Mitsubishi Motors -- thus head of the triple alliance that sells one in nine cars in the world -- faces charges of forging financial documents to divert the company's funds for private use and tax evasion by underreporting personal income in an amount that may run to nine figures.

Reporters gather in front of Nissan's headquarters in Yokohama, Japan on Nov. 19.

Hiroto Saikawa, Nissan's chief executive, apologizes for the scandal at the company's press briefing in its Yokohama headquarters on Nov. 19.

Nissan holds a press conference on the scandal in Yokohama on Nov. 19.

Editor: Ben Armour

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Keywords: Nissan , Renault , Carlos Ghosn