Mitsubishi Motors fires Carlos Ghosn, CEO to be interim chairman
Tokyo, Nov 26 (AP): The board of Japanese automaker Mitsubishi Motors, which is allied with Renault and Nissan, voted unanimously Monday to dismiss Carlos Ghosn as its chairman following his arrest last week.
Prosecutors arrested Ghosn on November 19 on suspicion he under-reported his income by USD 44 million over five years.
Nissan Motor Co ousted him as its chairman last week, saying an internal investigation prompted by a whistleblower also found Ghosn misused company money and assets.
Mitsubishi Motors' CEO Osamu Masuko, chosen by the board as acting chairman pending a shareholders' meeting, said Ghosn would not be able to perform his duties, considering his arrest and Nissan's dismissal of him as chairman.
Masuko said he did not know the specifics of the criminal allegations and declined comment on the case.
When asked for his personal view about the situation, Masuko said he was baffled.
"To be honest, I was shocked, and I couldn't believe it," he told reporters at Mitsubishi Motors' showroom at headquarters.
"I still can't figure out why, and I just don't understand."
But Masuko insisted the three-way alliance will persevere, saying it's critical for the automakers' futures, especially in working together on new technologies such as autonomous driving, artificial intelligence and connectivity for vehicles.
"We believe the alliance is needed," Masuko told reporters at Mitsubishi Motors' showroom at headquarters.
"Where the three companies are headed is not confrontation."
Ghosn was central in creating the alliance, but would have had to leave eventually, he said, adding just that the "timing had come sooner."
Renault has kept Ghosn as chief executive, while appointing an interim chair while the company awaits more information about the allegations against him.
The disruptions over Ghosn's case have added to worries about the future of the alliance between Renault, Nissan and Mitsubishi, whose status as the most recent addition could be more precarious.
European media have speculated that the case against Ghosn was partly driven by a desire to fend off moves to merge Renault and Nissan and keep the company under Japanese control.
Resentment within the Japanese automaker against Ghosn's pay and power may also have played a role.
Ghosn has been a dominant force in the Japanese auto industry for nearly two decades.
He led the addition of Mitsubishi into the alliance in 2016 after the smaller automaker was embroiled in an inspections reporting scandal.
Nissan holds a 34 per cent stake in Mitsubishi.
Japanese media, citing unidentified sources, are reporting that Ghosn and Greg Kelly, an executive who was arrested on suspicion of collaborating with him, are asserting their innocence. Ghosn has not commented publicly.
The two executives have not yet been charged. Under Japanese law, a suspect can be held in custody for up to three weeks per suspected charge without any charges being filed.
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Siddaramaiah seeks Centre's urgent intervention over commercial LPG cylinder shortage
Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Tuesday sought the Centre's urgent intervention to ensure supply of adequate commercial LPG cyclinders to hotels and restaurants in Bengaluru.
He said hotels, restaurants and catering establishments in the city would be forced to suspend operations if supplies are not restored, affecting a large number of students and working professionals who depend on them for regular meals.
In his letter to Union Minister of Petroleum and Natural Gas Hardeep Singh Puri, he also requested him to issue appropriate directions to the oil marketing companies to address the current supply constraints that would help ease the situation.
Referring to the March 9 order issued by the Ministry of Petroleum and Natural Gas prioritising LPG supply for domestic consumers, Siddaramaiah said while the intention behind the order to ensure uninterrupted LPG supply to households across the country is well understood and appreciated, its implementation appears to have led to an unintended shortage of commercial LPG in Bengaluru.
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He cited that several hotels and restaurant associations in the city have reported that they are unable to procure commercial LPG cylinders, and many establishments are expressing concern that they may have to temporarily shut operations if supplies are not restored soon.
Bengaluru has a large ecosystem of small restaurants, mess facilities, and catering units that serve lakhs of people every day.
According to him, as per the discussions held with the oil marketing companies, the state's commercial LPG demand has traditionally been supported by supplies from the three OMCs-IOCL (around 500-550 MT per day), HPCL (around 300 MT per day) and BPCL (around 230 MT per day) and the sudden disruption of this supply is now severely affecting hotels, catering establishments and other commercial users in Bengaluru.
Any disruption to their functioning will have a direct impact on daily life in the city, he said.
"This issue also affects a large number of students and working professionals who live away from their homes and depend on hotels and mess facilities for regular meals. In addition, Choultries (wedding halls), hostels, and event venues that rely on commercial LPG for food preparation are also facing uncertainty, particularly with scheduled social and community events," the chief minister said in the letter.
Given the scale of dependence on commercial LPG in a metropolitan city like Bengaluru, Siddaramaiah sought the union minister's intervention to ensure that adequate commercial LPG supply is made available to hotels, restaurants, choultries, community halls and any other pure commercial establishments.
"Appropriate directions to the oil marketing companies to address the current supply constraints would help ease the situation. A timely resolution will help ensure that businesses continue to operate smoothly while also avoiding inconvenience to thousands of people who rely on these services on a daily basis," he added.
