Daily Management Review

New Battleground For Nissan & Ghosn Is A Rio Apartment: Reuters


New Battleground For Nissan & Ghosn Is A Rio Apartment: Reuters
After an almost month long drama over the arrest of the former chairman of the of Japanese car maker Nissan Carlos Ghosn over allegations of financial misconduct, at the centre of that controversy is an apartment in Rio de Janeiro in Brazil which reportedly has cash, art works and some personal belongings of Ghosn.  
It is alleged that Ghosn is trying to get back “personal belongings, documents, cash, objects and art pieces” from the apartment in question which Nissan claims it owns. According to the filing in a Brazilian court last week by Nissan, the car maker claims that the apartment could contain evidence of financial misconduct.
This development has made it clear that the battle between Ghosn and Nissan is not only limited to Japan and Tokyo, where Ghosn was arrested on November 19 and later on a formal chargesheet filed against him, but is not set to explode in various parts of the world.
A favorable injunction last week was obtained by Ghosn’s family which was quickly overturned by courts.
According to reports, the apartment is still out of bounds for the Ghosn family, citing sources at Nissan in Brazil. Nissan also negated as incorrect a new published in the Japanese newspaper Nikkei which claimed that another favorable court decision on Monday was alos won by the Ghosn family.
The degree to which Ghosn and Nissan are legally entangled over the access to the apartment in Rio is evident from the previously unreported court papers which the news agency Reuters has reportedly seen. The agency also reported that there are a number of more such apartments that Ghoisn has been using. According to the allegations by Nissan, Ghosn, who has been credited by the auto world of turning around the fortunes of Nissan from the brink of bankruptcy, has not reported the entire compensation that he received from the company for years and amounting to tens of millions of dollars and had also allegedly siphoned off company money and put them to personal use.
According to the court filings, three safes that Nissan has yet to open are present in the Rio apartment. The company also said that those were found while the company was conducting an audit of the apartment after the removal of Ghosn form the company.
The court filing said that the apartment also has “designer furniture, artwork and decorative objects,” Reuters reported. The apartment had p\been purchased in 2011 by a Nissan subsidiary after the Japanese car manufacturer opened up a factory in a city nearby.
Nissan said in the filings that the purpose of purchasing the apartment was to make the trips of Ghosn “become more constant” to Brazil – where he was born and maintains citizenship.