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Nissan itself will be indicted alongside Ghosn, report says

Prosecutors in Tokyo are expected to file charges against Nissan itself alongside an expected indictment against former Chairman Carlos Ghosn as part of the ongoing financial misconduct case. That's according to a report from Japan's Nikkei business daily, which does not identify its sources. Charges are also likely against Greg Kelly, a member of Nissan's board of directors who was taken into custody with Ghosn Nov. 19 after Japanese authorities questioned the former chairman aboard a corporate jet at the Tokyo Haneda airport. Monday is the deadline when prosecutors must either indict the two executives, release them or arrest them on new allegations. Both men are accused of under-reporting salaries in five annual reports that stretch through the fiscal year that ended in March 2015. The Nikkei says they'll also be arrested on new allegations of misstating financial information for the subsequent three business years. Nissan would be charged for not preventing the alleged crime. Both men have reportedly denied the allegations. In response to the Nikkei report, a spokesman for Nissan told Automotive News the company had "identified serious misconduct related to the reporting of Mr. Ghosn's compensation" and was cooperating with investors. The turmoil over Ghosn prompted the automaker to scrap plans to unveil a long-awaited longer-range Leaf electric car at the L.A. Auto Show last week. Ghosn is accused of conspiring to understate his income by about half the 10 billion yen (about $88 million) over the period. Reports say the issue relates to deferred compensation that Nissan CEO Hiroto Saikawa reportedly signed off on but may not have understood. The company didn't report the deferred compensation in Japanese securities filings as it is required, since the money is considered a future liability against the company. Automotive News cites an unnamed source who says Nissan has identified some $80 million in unreported deferred compensation promised to Ghosn. Nissan's board voted Nov. 22 to oust him as chairman, and Mitsubishi followed suit days later. Ghosn remains the CEO and chairman of Renault, however. Under Ghosn's guidance, Nissan and Renault joined forces in 1999 when Nissan was teetering toward bankruptcy. Mitsubishi joined on in 2016, with all three members able to jointly develop products and control costs. He had reportedly been pushing for deeper ties, including a possible merger between Nissan and Renault at the urging of the French government.

Maine is actively deregistering imported Mitsubishi Delicas — but why?

Some weird things are going on in Maine. The Maine Bureau of Motor Vehicles (BMV) is actively deregistering Mitsubishi Delicas that were imported to the United States and previously registered in Maine under the well-known 25-year federal import rule. The folks at Crankshaft Culture brought this news to our attention and published a fairly detailed report at the beginning of the month. Ever since seeing that, we’ve been trying to track down more answers from the Maine BMV and Maine Secretary of StateÂ’s office. HereÂ’s a summary of whatÂ’s transpired so far. Crankshaft Culture did the digging on the Mitsubishi Delica Owners Club Facebook page, and uncovered that Maine has been sending letters out to folks in the state who currently own Delicas. Those letters unequivocally state that “this vehicle is not eligible for motor vehicle registration in Maine and may not be operated on the public highway.” It then goes on to demand owners remove the plates from the Delicas and return them to the BMV. Furthermore, it states that “the registration may not be used as proof of ownership to sell this vehicle as an automobile.”  So no, Maine is not exactly mincing words. Of course, the question here is: Why? Why is Maine deregistering Mitsubishi Delicas? These vans were imported under the federal 25-year import law. We know this rule, but hereÂ’s a quick refresher from the Customs and Border ProtectionÂ’s website: “A motor vehicle that is at least 25 years old can be lawfully imported into the U.S. without regard to whether it complies with all applicable DOT Federal Motor Vehicle Safety Standards.” Theoretically, thatÂ’d make any Delicas over 25 years old legal to import here, along with pretty much any other contraption you want to bring that is old enough. Maine told us that itÂ’s only targeting pre-1995 Delicas, so thereÂ’s no time discrepancy. We went to the Maine Secretary of State to learn what is going on. The answers are slightly confusing, so bear with us. In short, Maine considers the Delica to be an "off-road vehicle." MaineÂ’s law — Title 29-A — is very clear with “off-road vehicles.” It reads: “Off-road vehicles may not be registered in accordance with this Title.” OK. Next question. What does Maine consider to be an “off-road vehicle?” And how does the Delica qualify? HereÂ’s where a brand-new modification (LD 1433 Sections 1-8) to Title 29-A comes into play.

Carlos Ghosn: What misconduct is he accused of?

TOKYO — Japan was shocked by news that Nissan Motor Co. Chairman Carlos Ghosn, who was widely respected for rescuing the carmaker from near bankruptcy, was arrested on Monday for alleged financial misconduct. Nissan said that Ghosn, who is also chairman and CEO of Renault and chairman of Mitsubishi Motors, would be fired from his post as Nissan chairman on Thursday. What is Carlos Ghosn accused of? Nissan CEO Hiroto Saikawa told a packed press conference on Monday night that the company had found that Ghosn had been using corporate money for personal purposes and under-reporting his income for years in official company filings to the Tokyo Stock Exchange. Another board member, Greg Kelly, was also deeply involved in the misconduct, Nissan said. Saikawa said he couldn't elaborate as the cases are being investigated by prosecutors, who have declined to comment. Prosecutors said that Ghosn and Kelly conspired to understate Ghosn's compensation over five years starting in fiscal 2010 as being about half of the actual 9.998 billion yen ($88.9 million). Public broadcaster NHK said Nissan paid billions of yen to buy and renovate homes for Ghosn in Rio, Beirut, Paris and Amsterdam, citing unnamed sources. The properties had no business purpose and were not listed as benefits in TSE filings, NHK said. Ghosn, 64, has not been formally charged. The Asahi newspaper reported that he and Kelly had submitted to prosecutors' questions after getting off a plane on Monday afternoon at Tokyo's Haneda Airport. Saikawa confirmed they had been arrested. Ghosn and Kelly have not been seen since, and their exact whereabouts are not known. Suspects are typically taken to the Tokyo Detention Center, which is linked to the Tokyo District Public Prosecutors Office. How did this come to light? Nissan's Saikawa said Ghosn's alleged improprieties came to light through a whistleblower, after which the company began an internal investigation and informed prosecutors. Japanese media reports say the informant is a member of Nissan's legal department. The Asahi reported, without citing sources, that the informant gave the prosecutors information in a plea bargain, implying the person may have provided evidence in exchange for a lighter sentence. How much control did Carlos Ghosn have? After becoming CEO of struggling Nissan in 2001, Ghosn was hailed as the automaker's savior by implementing an aggressive cost-cutting plan.