Nissan ousts chairman following his arrest

Nissan has removed auto industry legend Carlos Ghosn as chairman following his arrest earlier this week on suspicion of financial misconduct at the Japanese carmaker.

The vote by Nissan’s board on Thursday ends Ghosn’s reign at the top of the company dating back nearly two decades and could fracture a powerful alliance that he forged with France’s Renault.

Ghosn was detained by Tokyo prosecutors on Monday following an internal investigation at Nissan (NSANY) that revealed “significant acts of misconduct” over many years, including understating his income in financial reports and misusing company assets. The Brazilian-born executive has not yet commented publicly on the allegations.

In a statement to the Tokyo stock exchange, Nissan said its directors, led by CEO Hiroto Saikawa, voted unanimously to remove Ghosn, and another director, Greg Kelly, from their posts.

Kelly has also been arrested by Tokyo prosecutors after being accused of wrongdoing by the company.

Nissan said it would set up a special committee to improve corporate oversight as well as find a replacement for Ghosn. Nissan did not immediately name an interim chairman.

Renault (RNSDF) earlier this week stopped short of removing Ghosn as its CEO and chairman as it waited for more details of the criminal investigation.

But Mitsubishi Motors (