Shares hit on claim Nissan Renault chairman Carlos Ghosn faces arrest

Renault (LSE: 0NQF.L - news) shares have hit their lowest level in almost four years amid an unconfirmed report its chairman and chief executive Carlos Ghosn faces arrest.

The businessman, who is also chairman of Nissan, was reported by the Japanese newspaper Asahi to be facing questions about alleged violations of financial law in the country.

It said prosecutors were investigating whether he had understated his personal income on financial statements, adding that he had agreed to speak to the inquiry team voluntarily.

Nissan said it was checking the report before making any public comment while the Tokyo District Public Prosecutors Office declined to comment.

Trading in Nissan shares had ceased for the day in Japan when the newspaper published its story.

Renault shares were up to 12% lower in early deals in France. That marked their lowest level since December 2014.

Mr Ghosn is seen by many observers as the most powerful executive in the automotive industry.

He oversees the alliance involving Nissan, Renault and Mitsubishi (LSE: 7035.L - news) and has led recoveries at all three brands.

Mr Ghosn, who was born in Brazil, made his name after taking the top job at Nissan in 2001 and was credited with leading its fightback from near bankruptcy.

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