Shock in Japan as Nissan’s Ghosn held in financial probe

The arrest of Nissan Motor Co.’s chairman Carlos Ghosn on charges he underreported his income and misused company funds caused the company’s shares to tumble and shocked many in Japan who view him as something of a hero.

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Prosecutors said they were holding Ghosn and another Nissan executive for allegedly collaborating to falsify securities statements and underreport Ghosn’s income for five years.

Chief Cabinet Secretary Yoshihide Suga said Tuesday that the government was watching for economic fallout from the scandal at one of the world’s biggest automakers.

Ghosn was arrested Monday and Nissan’s CEO said the company’s board will meet on Thursday to approve his dismissal. Prosecutors refused to say where he was being held in Tokyo.

The Brazilian-born executive was credited with engineering Nissan’s revival over two decades.