Nissan top executive Munoz resigns amid broadened Ghosn probe

Jose Munoz, who was the automaker’s chief performance officer and head of its China operations, had been a ‘person of interest’ in Nissan’s widening internal investigation. (Reuters)
Updated 12 January 2019
0

Nissan top executive Munoz resigns amid broadened Ghosn probe

  • In a statement, Nissan said that Munoz had ‘elected to resign’ from the company, effective immediately
  • The scandal has sent shockwaves through the automotive industry and has escalated tensions between Nissan and Renault

TOKYO: One of Nissan’s top executives has resigned, further rattling the Japanese automaker’s management team as it broadens an investigation into ousted Chairman Carlos Ghosn’s alleged financial misconduct.
Jose Munoz, widely considered as a close ally to Ghosn and a possible successor to lead the automaking partnership between Nissan and France’s Renault, had been a “person of interest” in Nissan’s widening internal investigation.
The 53-year-old, who was Nissan’s chief performance officer and head of its China operations, made the announcement in a LinkedIn post on Friday. In a statement, Nissan said that Munoz had “elected to resign” from the company, effective immediately. It declined to offer details.
He becomes the latest executive casualty since Nissan in November removed Ghosn as chairman and fired representative director Greg Kelly.
The resignation deals another blow to the Japanese automaker, which is grappling with the scandal at a time when it is struggling to shore up profitability in the US and expand aggressively in China.
Reuters had reported earlier on Friday that the Japanese automaker was looking into decisions made in the US by Munoz who led Nissan’s North American operations from 2016 to 2018.
“Unfortunately, Nissan is currently involved in matters that have and will continue to divert its focus,” Munoz said in his post.
“As I have repeatedly and recently made clear to the company, I look forward to continuing to assist Nissan in its investigations.”
People with knowledge of the issue have said that Munoz, who had been placed on a leave of absence earlier in the month, had not been co-operating with the internal investigation.
Ghosn, once the most celebrated executives in the auto industry and the anchor of Nissan’s alliance with Renault, remains in custody in a Tokyo detention center since his initial arrest in late November.
Ghosn has been indicted on two counts of under-reporting his income, and aggravated breach of trust for temporarily shifting personal investment losses worth ¥1.85 billion ($17 million) to Nissan.
The scandal has sent shockwaves through the automotive industry and has escalated tensions between Nissan and Renault, where Ghosn remains CEO and chairman.
Munoz joined the automaker in 2004 in Europe and led its significant expansion in North America after the global financial crisis. Since then, Nissan has succeeded in raising its market share in the US and posted record sales.
Earlier this year, Nissan tapped Munoz to oversee its operations in China where it plans to ramp up sales over the next few years.
Since then, the world’s largest auto market has been showing signs of a slowdown, prompting the automaker to cut local production plans in the coming months.


Abu Dhabi aims to lure start-ups with investment in new technology hub

Updated 24 March 2019
0

Abu Dhabi aims to lure start-ups with investment in new technology hub

  • The initiative will help Abu Dhabi reduce reliance on oil
  • Mubadala hopes to attract Chinese and Indian companies

ABU DHABI: Abu Dhabi will commit up to $272 million to support technology start-ups, it said on Sunday, in a dedicated hub as part of efforts to diversify its economy.

US tech giant Microsoft will be a strategic partner, providing technology and cloud services to the businesses that join the hub as the capital of the United Arab Emirates continues its push to reduce reliance on oil revenue.
Abu Dhabi derives about 50 percent of its real gross domestic product and about 90 percent of central government revenue from the hydrocarbon sector, according to ratings agency S&P.
The emirate launched a $13.6 billion stimulus fund, Ghadan 21, in September last year to accelerate economic growth. Ghadan means tomorrow in Arabic. The new initiative, named Hub 71, is linked to Ghadan will also involve the launch of a $136 million fund to invest in start-ups, said Ibrahim Ajami, head of Mubadala Ventures, the technology arm of Mubadala Investment Co.
The goal is to have 100 companies over the next three to five years, Ajami said. “The market opportunities in this region are immense,” he added.
Mubadala, with assets of $225 billion and a big investor in tech companies, will act as the driver of the hub, located in the emirate’s financial district.
Softbank will be active in the hub and support the expansion of companies in which it has invested, Ajami said, adding that Mubadala is also aiming to attract Chinese and Indian companies, among others.
Mubadala which has committed $15 billion to the Softbank Vision Fund, plans to launch a $400 million fund to invest in leading European technology companies.
Incentives mapped out by the government include housing, office space and health insurance as part of the $272 million commitment, Ajami said.
Abu Dhabi will also announce a new research and development initiative on Monday linked to the Ghadan 21 plan, according to an invitation sent to journalists.