Nissan CEO Turns on Mentor Ghosn in ‘Despair’ Over Misconduct

(Bloomberg) -- He was long the protege of car executive supremo Carlos Ghosn and their close relationship led Hiroto Saikawa to the top job at Nissan Motor Co.

On Monday, in a dramatic unfolding of events, the tables turned. The manager, not even bothering to contain his anger, took the microphone in front of a room full of reporters and said he was struggling to put into words the indignation he felt after uncovering alleged financial misconduct by his mentor and the Nissan chairman, Ghosn.

Click here: Nissan to Oust Iconic Chairman Ghosn After Shock Arrest

“I felt not just that is was regrettable, but much more strongly than that -- I felt indignation and personally, I keenly felt despair,” Saikawa said in prepared remarks before a hastily convened late-night press conference in Yokohama near Tokyo. The Nissan CEO sat alone behind a desk, speaking and taking questions for an hour and a half.

Ghosn, 64, the architect of the two-decade-old Renault-Nissan-Mitsubishi Alliance, stands accused by Nissan of under-reporting compensation to securities regulators in Tokyo and making personal use of company assets.

Le Cost Killer

The Franco-Brazilian executive enjoyed a cult-like following in Japan after saving Nissan from near-bankruptcy, earning the moniker “Le Cost Killer” for his turnaround methods. He’s also viewed as the linchpin of the three-company partnership.

Ghosn’s long tenure appeared to have had a “negative impact” on day-to-day operations, Saikawa explained, adding that the company needed to improve its weak corporate governance.

Taking the helm at Nissan marked the apex of Saikawa’s four-decade career. Following are some key dates: