MMTOY Mitsubishi Motors Corp (PK)

By Sean McLain 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (April 10, 2019).

TOKYO -- Carlos Ghosn blamed backstabbing Nissan Motor Co. colleagues for the charges he now faces, saying they feared a merger with partner Renault SA.

Nissan executives were "playing a very dirty game," Mr. Ghosn said in a video released by his lawyer. "This is about a plot. This is about a conspiracy. This is about backstabbing." He said he is innocent of the charges.

Mr. Ghosn, the former chairman of Nissan and Renault, had planned to hold a news conference this week, but was prevented from doing so after prosecutors arrested him again on April 4.

Nissan responded to the video by reiterating its view that Mr. Ghosn's own actions led to his arrest. "Aside from any criminal matters, Nissan's internal investigation has uncovered substantial evidence of blatantly unethical conduct" by Mr. Ghosn, a spokesman said.

Mr. Ghosn said Nissan executives had been concerned they could lose their jobs and the Japanese auto maker could lose its independence as he pursued closer ties with Renault, which owns 43.4% of Nissan. The Wall Street Journal previously reported that Mr. Ghosn had been planning to replace Nissan Chief Executive Hiroto Saikawa.

Mr. Ghosn said Nissan executives worked against him "because there was first a fear that the next step of the alliance -- in terms of convergence, in terms of moving towards a merger -- would, in a certain way, threaten some people."

The 7 1/2 minute video was recorded the day before Mr. Ghosn's latest arrest. It originally contained a portion in which Mr. Ghosn named the people he believed were part of a conspiracy, but his legal team decided with Mr. Ghosn's approval to cut it, said Junichiro Hironaka, his lead lawyer.

Mr. Ghosn said he has been the "fiercest defender of the autonomy of Nissan," but believed its independence rested on its performance, which he described as "not good."

In its most recent earnings announcement in February, Nissan lowered its full-year guidance for sales volume, revenue and profit, as sales in Europe and the U.S. sputtered. The U.S. decline was exacerbated by an attempt by Nissan to unwind financial incentives on its cars.

Asked about Mr. Ghosn's assertions, a Nissan spokesman pointed to past statements by Nissan executives. The CEO, Mr. Saikawa, has blamed Mr. Ghosn's efforts to lift market share for an unhealthy growth in incentives on the company's cars.

In arresting Mr. Ghosn again, prosecutors cited suspicions he personally received $5 million of a total $15 million Nissan sent to an overseas distributor, which people familiar with Nissan's investigation have identified as Suhail Bahwan Automobiles of Oman. A representative of Mr. Ghosn has said neither he nor his family personally benefited from any payments by Nissan. The Omani company hasn't responded to requests for comment.

In the video message released Tuesday, Mr. Ghosn said he believed he would be acquitted if he received a fair trial. But he said his lawyers hadn't filled him with confidence that he would get one.

The latest arrest ended a monthlong period in which Mr. Ghosn was out on bail of nearly $9 million. He previously spent 108 days in jail after his surprise arrest in Japan on Nov. 19.

Mr. Ghosn's lawyer said the defense team plans to appeal his latest detention to Japan's Supreme Court, arguing that courts had already decided Mr. Ghosn wasn't a flight risk and there wasn't concern he would destroy evidence.

After Mr. Ghosn's initial arrest, he spent weeks undergoing daily questioning from prosecutors without the presence of his lawyers. "We believe that using this method, where any means necessary is used to find Mr. Ghosn guilty, is against the spirit of due process and a fair trial," said Mr. Hironaka, the lead defense lawyer. Mr. Ghosn has been advised not to speak to prosecutors this time, Mr. Hironaka said.

Jean-Yves Le Borgne, a Paris-based lawyer for Mr. Ghosn, told French TV channel TF1 that his client should be tried in France to ensure he has "the right to impartial justice that respects human rights and the presumption of innocence."

Nick Kostov in Paris contributed to this article.

Write to Sean McLain at sean.mclain@wsj.com

(END) Dow Jones Newswires

April 10, 2019 02:47 ET (06:47 GMT)

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