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Auditor had questioned Nissan on payments in Ghosn scandal, source says

TOKYO — Nissan's auditor had repeatedly questioned transactions at the heart of allegations of financial misconduct by former chief Carlos Ghosn, but Nissan said they were proper, a person with direct knowledge of the matter said on Wednesday. Ernst & Young ShinNihon LLC questioned Nissan's management several times, chiefly around 2013, about purchases of overseas luxury homes for Ghosn's personal use and of stock-appreciation rights that were conferred on him. But the Japanese automaker said the transactions and financial reporting were appropriate, the source told Reuters on condition of anonymity. The revelation shows Nissan and its auditor were discussing the transactions, in apparent contrast with Nissan's contention that the alleged misreporting of benefits for Ghosn was masterminded by Ghosn and a key lieutenant. A spokesman for EY ShinNihon, the Japanese affiliate of global accounting firm Ernst & Young, said he could not comment on specific cases. A Nissan spokesman declined to comment. Ghosn was arrested on Nov. 19 as he arrived in Japan. Prosecutors accuse him of falsifying Nissan's annual reports to understate by about half his total compensation of some 10 billion yen ($90 million) over several years. The high-profile former executive has denied the allegations, according to Japanese media. Ghosn remains in custody and is unable to speak publicly. He is represented by former prosecutor Motonari Otsuru, according to Japanese media. Otsuru's law firm declined to comment on Wednesday, and Otsuru has not responded to requests for comment. Nissan has largely pinned the blame on Ghosn and Greg Kelly, a former representative director who was arrested along with Ghosn on the same allegations. "As a result of the investigation, we are certain these two are the masterminds," CEO Hiroto Saikawa told a news conference on Nov. 19, referring to Ghosn and Kelly. He declined to say whether others at Nissan were involved in the alleged wrongdoing. An internal investigation is ongoing, and Nissan says it is cooperating with prosecutors. Nissan and Mitsubishi Motors have removed Ghosn as chairman in the wake of his arrest. The French member of the three-firm alliance, Renault, retains him as chairman and CEO.

Mitsubishi Mirage fuel economy challenge winner duct tapes his way to 74.1 MPG

There's a lesson to be learned from the Mitsubishi Motors' Extreme MPG Hypermiling Challenge: if you want to get your 2014 Mirage to get over 74 miles per gallon, apply duct tape. During the recent event, which ran from Las Vegas, NV to Cypress, CA (where Mitsubishi has its North American HQ), a number of journalists were "allowed to make very minor modifications to their cars from production form." Their solution was to put some colored duct tape over some of the gaps in the front fascia sheetmetal as a way to try and reduce aerodynamic drag. A combination of expertly applied sky blue tape on a Kiwi Green Mirage and careful driving allowed About.com's Aaron Gold to reach 74.1 mpg in the contest. That beat out Popular Mechanics' Mike Austin (driving a Plasma Purple Mirage) and Autobytel's Joni Gray (Sapphire Blue) who tied for second with an average mpg rating of 68.5. The $12,995 car's official EPA fuel economy ratings are 37 city/44 highway/40 combined (continuously-variable transmission model). You can read the Autoblog review of the '14 Mirage here, check out the press release below and keep an eye out for a 30-minute video version of the event on Cars.TV soon. About.com's Aaron Gold Crowned the Winner in Mitsubishi Motors' Extreme MPG Hypermiling Challenge by Achieving an Amazing 74.1 MPG in his 2014 Mitsubishi Mirage Cypress, California, March 13, 2014 – Aaron Gold of About.com, with an astounding fuel efficiency of 74.1 mpg driving his Kiwi Green 2014 Mitsubishi Mirage, finished today with the highest MPG in the Mitsubishi Motors Extreme MPG Hypermiling Challenge. Following Aaron in the 275-mile trek from Las Vegas, Nevada to the Mitsubishi Motors North America, Inc. (MMNA) headquarters in Cypress, California was Mike Austin from Popular Mechanics in his Plasma Purple Mirage and Joni Gray of Autobytel in her Sapphire Blue Mirage. Amazingly, both Mike and Joni tied with an average fuel economy rating of 68.5 mpg. "This was such an exciting event, to have such knowledgeable colleagues in our industry to push the limit to see how high of an MPG can be achieved in our 2014 Mirage," stated Don Swearingen, Executive Vice President of MMNA. "I never figured I'd come in over 70 MPG!" said winner Aaron Gold of About.com. "All three of us kept our speeds down; I think keeping my eyes way down the road, planning ahead and avoiding sudden changes of speed was what gave me the edge.

France's Macron says Renault-Nissan partnership is a 'jewel' to be strengthened

TOKYO — French President Emmanuel Macron on Wednesday called for further synergies and alliances to strengthen the Renault-Nissan partnership in a global market. "The Renault-Nissan alliance is a jewel in the industry," Macron told French expatriates in Tokyo. "We created a giant which we must not only preserve but develop synergies and alliances to strengthen it in the face of international competition." His comments appeared to leave open the possibility both of a deeper integration of the 20-year-old Renault-Nissan alliance, which has been shaken by the scandal over its former chief Carlos Ghosn, and tie-ups with other manufacturers. Last month, Renault and Italian-American group Fiat Chrysler Automobiles (FCA) announced they were in merger talks. But the discussions were called off after FCA grew frustrated with the role the French state was playing, especially its need to secure agreement from Nissan over how to move the merger forward. Since the break-off of the FCA talks, Renault executives have been looking to rebuild ties with Nissan, which is keen to reduce the influence the French state has in the alliance via its 15% stake in Renault. Renault owns 43% of the Japanese automaker, which in turn holds a 15%, non-voting stake in its partner. Nissan on Tuesday threw cold water on hopes for a quick fix to strained relations with France's Renault SA , saying inequality between the partners could unravel their two-decade-old automaking alliance. Macron said on Wednesday France would remain vigilant that Carlos Ghosn's presumption of innocence and the former Renault-Nissan leader's rights to defend himself in a Japanese lawcase are respected. "It's not up to the French president to interfere publicly in a judicial case," Macron said. "Japanese justice is independent." "We will be vigilant, just like with all our citizens across the world who have to answer to the law, through consular activity, so that the defendant's rights and presumption of innocence are respected in that case."