The reported arrest of Carlos Ghosn is a shocking development for the auto industry

Nissan
CEO Carlos Ghosn speaks during the beginning of the New York
International Auto Show.
Bryan
Thomas/Getty Images

• Carlos Ghosn, a legend in the auto industry
  has reportedly been arrested.
• The longtime leader of the Renault-Nissan alliance allegedly
  engaged in misconduct, CNN reported.
• Ghosn has been considered one of the most effective leaders
  of the past two decades in the car business.

Nissan Motor chairman Carlos Ghosn has been arrested, the Yomiuri
daily said on its website on Monday.

The Japanese automaker said earlier on Monday that Ghosn had used
company money for personal use and that it had been investigating
possible improper practices of Ghosn and Representative Director
Greg Kelly for several months.

Ghosn is one of the most prominent auto executives in the world
and a legend in the industry. He has presided over an alliance
between Nissan and Renault that created a global automotive
powerhouse.

Ghosn, 64, was until last year the CEO and Chairman of Nissan,
when he gave up the CEO role. More recently, Ghosn ascended to
the chairmanship of Mitsubishi, when the struggling
Japanese carmaker joined the alliance.

CNN reported that “Nissan said in a
statement that it had been investigating
Ghosn and another board member for months, and was now
cooperating with Japanese prosecutors.”

The Brazilian-born Ghosn turned around both Renault and Nissan in
the 1990s and early 2000s and is widely considered to be among
the most capable leaders in the industry. Prior to the financial
crisis, Ford courted him take over the American automaker as CEO
(former Boeing executive Alan Mulally wound up getting the job),
and prior to its 2009 bankruptcy, General Motors and activist
investor Kirk Kerkorian agitated to install Ghosn at the top.

If the charges prove true, this would be among the most stunning
scandals and public falls in this history of the car business.

(Reuters reporting by Elaine Lies; Editing by Himani Sarkar)