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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.

Mitsubishi HQ raided by the Japanese government

Mitsubishi's fuel economy scandal continues to grow, and the Japanese government wants answers. According to Reuters, the Japanese Transport Ministry raided the company's headquarters and a factory in Nagoya today. This raid comes soon after the company revealed that a number of its SUVs were also being sold with incorrect fuel economy ratings. The Japanese government issued a stop-sale on those vehicles a few days ago. This raid also follows an internal investigation conducted by Mitsubishi to discover how this fuel economy scandal happened, and how the practices that led to it were able to continue for 25 years. The internal investigation revealed a few contributing factors that all fell under issues with the company's culture. There was significant pressure throughout the company to reach fuel economy targets and missing them wasn't readily accepted. Questioning decisions of management was also discouraged, and it seemed the different divisions of the company weren't working well together. The findings of this raid have yet to be revealed, but it will be interesting to see how they compare with those of the internal investigation. The Japanese Transport Ministry seems intent on preventing a repeat of this with another company considering that, according to Reuters, it "sent documents to other automakers to enforce compliance with rules for calculating mileage ." Related Video: News Source: Reuters via Automotive News EuropeImage Credit: Julien Amado / Autoblog Quebec Government/Legal Green Mitsubishi Fuel Efficiency investigation

Mitsubishi planning to bring back Lancer as hybrid crossover

It looks like the Mitsubishi Lancer is about to undertake a daring transformation from a ten-year-old sedan to a crossover. The Eclipse has already shed its coupe roots and become the Eclipse Cross, and now it's the Lancer's turn to become a high-rider. The carmaker already teased its future plans with the e-Evolution concept last year (pictured above), again combining a previously successful Mitsubishi nameplate with new crossover intentions. Now, talking to AutoExpress, Mitsubishi's chief operating officer and chief designer both hint of the Lancer taking the shape of the e-Evolution. For Mitsubishi, the Lancer's segment still looks very viable in the next decade, but it doesn't necessarily want to fight the Ford Focus and the VW Golf with a conventional hatchback, let alone a three-box saloon. "We believe we have a solution that could fit the segment", said COO Trevor Mann. "[The segment's] numbers are still expanding in China, so there's appeal. And I think because the segment is so large globally, we've got to take a look at it." The chief designer, Tsunehiro Kunimoto said, "Just because it's C-segment, it doesn't mean it has to be a very conventional hatchback. Maybe we can create a new type of hatchback vehicle. We're thinking quite radically." It is also likely that the Lancer's eventual replacement will use hybrid technology and a Renault-Nissan Alliance platform — and an all-wheel-drive option would still be a nod to the Lancer Evo's heritage, at least partially justifying any use of the Evolution brand. Trevor Mann says the product timeline is largely set until 2025, and the existing crossovers in the portfolio, the Outlander and the Outlander Sport (known elsewhere as the ASX) will get replacements. The company is now directing its attention to the Lancer and the Montero, both of which have last had a major update over ten years ago. The Lancer was phased out in the U.S. last fall after a very long run. Related Video: