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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.

Nissan Sentra gets mean with 240-hp Nismo concept

Nissan's Sentra Nismo Concept made its world debut at the LA Auto Show today as part of the Japanese automaker's intitiative to expand its performance line of factory performance models, and it's packing a turbocharged inline four-cylinder engine with 240 horsepower and 240 pound-feet of torque - that's 110 hp more than the regular Sentra.
Of course, no high-performance version of any car would be complete without the suspension upgrades to handle the power, and Nissan has fitted Nismo-tuned suspension and a limited-slip differential to the little front-wheel-drive sedan. With such an increase in power, Nissan wisely chose to swap out the stock brakes for the Brembo calipers and discs from the 370Z. Larger 225-millimeter-wide tires are wrapped around 19-inch Rays wheels and contained within wider fender flares. The steering and six-speed manual transmission also were tuned by Nismo.
The exterior gets new aerodynamic bits, such as a revised front fascia, a chin spoiler and a new rear spoiler, while the interior gets a nice set of Recaro seats and a leather-and-Alcantara steering wheel. For more information on the Sentra Nismo Concept, check out the press release below, and feel free to head over to the auto show photo gallery to see the car up close.

Mercedes to build CLA at Nissan plant in Mexico [w/poll]

Volkswagen may have paved the way for American customers to get used to the idea of German cars produced in Mexico, but it won't be the only one for long. BMW is said to be considering production of the 1 Series, 3 Series and Mini south of the border, Audi is working on its own factory in San Jose Chiapa, and now Mercedes-Benz is reported to be following suit as well. Only instead of building its own plant, Daimler is tipped to use a Nissan factory in Aguascalientes.
According to a report in Manager Magazin recently cited by Automotive News Europe, that's where Mercedes is considering building the GLA, CLA and another A-Class sedan. Just what the point would be of another sedan based on the A-Class in addition to the CLA, we're not sure, but if Benz can produce the larger CLS in addition to the E-Class and S-Class sedans, we suppose there'd be room for an A-Class sedan alongside the CLA as well.
We're still waiting on confirmation and comment from Mercedes on the prospect, but one way or another, the increase in Mexican production of German automobiles seems to be a foregone conclusion.