Renault row looms as chairman Carlos Ghosn held over £34m pay claims

The company’s chairman and chief executive remains in custody as officials investigate allegations the car industry veteran, who also chairs the boards of Nissan and Mitsubishi, failed to disclose £34.5m to the Japanese authorities.

Nissan has also alleged the executive, known as “Le Cost Killer” for taking a ruthless attitude to business turnarounds, misused company funds.

Nissan, which called in the authorities after an audit inspired by a whistleblower, has refused to divulge the amounts involved in the spending claim though state broadcaster NHK said it included the purchase of homes for Mr Ghosn in four countries.

The scandal will result in him being formally dismissed by the Nissan board on Thursday, the company said.

Its investors got their first chance to react to the news on Tuesday – with shares falling 6% at one stage, alongside those of Mitsubishi.

Mitsubishi, of which Mr Ghosn is also chairman, is also set to cut him loose.

Things were less clear at Renault, in which the French government has a 15% stake.

The country’s finance minister, Bruno Le Maire, left no doubt about his views on Mr Ghosn’s future when he told reporters he was “no longer in a position to lead the group”.

He demanded an interim chief executive was appointed at a Renault board meeting on Tuesday afternoon.

But it later emerged that Mr Ghosn, who is not accused of any wrongdoing in France, had strong support among top management when the Financial Times published a memo to staff it had been sent.

The document quoted chief operating officer Thierry Bollore as saying: “On your behalf, we (the board) would like to state here our full support for our chairman and CEO.”

It also committed Renault’s future to the three-way partnership spearheaded by Mr Ghosn.

Industry observers say the very future of the Nissan, Renault and Mitsubishi alliance – aimed at sharing costs and technology – is threatened by the scale of the alleged wrongdoing.

Nissan’s chief executive admitted Hiroto Saikawa conceded at a news conference on Monday that too much power had been placed in one man’s hands since 2005.Mr Ghosn – the architect of that partnership – is yet to comment on the allegations he faces.

A second Nissan executive, Greg Kelly, also remains in custody on suspicion of aiding Mr Ghosn.

The men can be held without charge for 48 hours in Japan but that can be extended by up to 20 more days. – news.sky.com