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Carlos Ghosn was on verge of release — so prosecutors file new allegation

TOKYO — Japanese prosecutors added a new allegation of breach of trust against Nissan's former chairman Carlos Ghosn on Friday, dashing his hopes for posting bail quickly. Ghosn and another former Nissan executive, Greg Kelly, were arrested Nov. 19 and charged with underreporting Ghosn's income by about 5 billion yen ($44 million) in 2011-2015. They also face the prospect of more charges of underreporting Ghosn's income for other years by nearly 10 billion ($80 million) in total. The breach of trust allegations were filed a day after a court rejected prosecutors' request for a longer detention of both men. The new allegation only applies to Ghosn, and Kelly could still be bailed out. A request for bail by Kelly's lawyer is pending court approval, according to the Tokyo District Court, but his release will have to wait until next week since the request was still in process after office hours Friday. Prosecutors in a statement Friday alleged that Ghosn in 2008 transferred a private investment loss worth more than 1.8 billion yen ($16 million) to Nissan by manipulating an unspecified "swap" contract. Ghosn also profited by having the company transfer a total of $14.7 million to another company to benefit himself and that company's owner, who helped in the contract manipulation, prosecutors said. Shin Kukimoto, deputy chief prosecutor at the Tokyo District Prosecutors Office, refuse to say if the two transactions were related or how Ghosn illegally profited. He also declined to identify the collaborator or whether the transactions were made overseas. Ghosn and Kelly are only charged with underreporting Ghosn's pay over five years, in violation of the Financial Instruments and Exchange Act. They have not been formally charged with an additional allegation of underreporting another 4 billion yen ($36 million) for 2016-2018, for which their first 10-day detention was to expire Thursday. Prosecutors have been criticized for separating the allegations as a tactic to detain Ghosn and Kelly longer. They say Ghosn and Kelly are flight risks. The maximum penalty for violating the financial act is up to 10 years in prison, a 10 million yen ($89,000) fine, or both. Breach of trust also carries a similar maximum penalty. The conviction rate in Japan is more than 99 percent for any crime. Ghosn was sent by Renault in 1999 to turn around Nissan, then on the verge of bankruptcy, and he led its rise to become the world's second-largest automaker.

Carlos Ghosn's new lawyer, 'the Razor,' starts slashing

TOKYO — Carlos Ghosn's new lawyer took aim at Nissan, prosecutors and courts on Wednesday, dismissing the charges against the ousted chairman as an internal company matter and saying Japan was out of step with international norms by keeping his client in jail. "This should have been dealt with as an internal matter," Junichiro Hironaka, nicknamed the Razor, said at his first press briefing. Ghosn, who was arrested in November over alleged financial misconduct and remains in detention in a Tokyo jail, picked a new team last week with long-time defense attorney Hironaka as a key member to replace Motonari Otsuru, a lawyer who once ran the prosecutor's office investigating him. Hironaka's combative style contrasts with the low-key approach adopted by media-shy Otsuru. Ghosn's switch to an aggressive legal strategy came after his attempts to win bail failed and just before lawyers were due to sit down with prosecutors and judges for the first time to hash out a schedule for pre-trial discovery meetings, where prosecutors will reveal evidence and submit a list of witnesses. Hironaka said he didn't know why Ghosn picked him, but added that Ghosn probably wanted an experienced criminal lawyer as the case moved toward trial. The 73-year-old defense attorney is reputed for winning high profile cases, including the acquittal of a senior lawmaker, Ichiro Ozawa, on financial misconduct charges. He also helped free a senior bureaucrat Atsuko Muraki who was jailed for four months on corruption charges fabricated by prosecutors. Yet, even with greater legal firepower the former Nissan Motor Co boss faces a criminal justice system where only three out of every 100 defendants pleading not guilty are acquitted. Neither does Japan have a plea-deal mechanism that would allow Ghosn to agree to lesser charges for a lighter sentence. "The change in lawyers means a change in style, but the legal strategy will still be the same. I don't think it increases Ghosn's chance of an acquittal," said Masashi Akita, a defense lawyer at Shin-Yu Law Office in Osaka, ahead of Wednesday's comments by Hironaka. Ghosn has lost his perch atop an automotive alliance trio of French carmaker Renault SA and Japanese automakers Nissan and Mitsubishi Motors Corp. Attempts to win bail, including an offer to wear a GPS ankle bracelet and hire security guards to stop him trying to tamper with evidence, failed.

Mitsubishi looks to crossovers and EVs for US success

Say what you will about Mitsubishi, but the Japanese automaker is slowly seeing a resurgence here in the United States. December 2015 marked the company's twenty-second consecutive month of year-over-year sales increases, and looking at last year as a whole, Mitsubishi's sales were up 23 percent over 2014. Ken Konieczka, Mitsubishi's vice president of sales operations, says that in order to stay successful, the company will bet big on crossovers and electric vehicles in the coming years. And that means a relatively aggressive product plan here in the US. First up, a brand-new CUV will launch in early 2018, previewed by the eX Concept that debuted at last year's Tokyo Motor Show (pictured). Konieczka says Mitsubishi is making room for this new crossover in its lineup – the Outlander will slowly get bigger, and the Outlander Sport will get smaller. The production version of the eX will slot between those two. Speaking of the Outlander siblings, both will be replaced in the next five years. A new, larger Outlander will arrive in 2019, and the smaller Outlander Sport will arrive in 2020. To fulfill the electric side of the business, Konieczka confirms the next Outlander Sport will sprout an EV variant, and the Outlander plug-in hybrid will launch in the United States later in 2016, as a 2017 model. As for the rest of the company's portfolio, Mitsubishi will offer the updated Mirage hatchback and new G4 sedan later this year. The future for the Lancer, however, looks grim. Konieczka says Mitsubishi still can't find an OEM partner to help create and produce a new Lancer, and our gut says the compact sedan will be phased out in the very near future. "We made a lot of mistakes," Konieczka admits, saying Mitsubishi was "spread too thin [and] had too many models" in the past. This new, more focused approach on EVs and crossovers certainly sounds promising, and will hopefully help Mitsubishi continue its slow growth here in the US market. Still, we won't know for sure until the new products actually reach showrooms. But for now, at least, things are steadily on the rise.