Mitsubishi Motors has followed Nissan’s lead and has removed Carlos Ghosn from his role as chairman, following his arrest last week for alleged financial misconduct.
Ghosn's ouster marks the end of his chairmanship of Japanese automakers, just two years after he was praised for bringing a steadying hand to Mitsubishi following a cheating scandal in 2016.
CEO Osamu Masuko will become temporary chairman, the automaker said.
The move comes amid discontent over French partner Renault's role in the 19-year alliance of which Ghosn was the driving force, according to Reuters.
The alliance was created in 1999 when Nissan was rescued from near-bankruptcy, it was enlarged in 2016 to include Mitsubishi and enabled the members to jointly develop products and control costs.
Even as Nissan has recovered and grown rapidly, it remains a junior partner in the shareholding structure.
Renault owns 43 percent of Nissan and the Japanese automaker holds a 15 percent non-voting stake in the French firm. And Nissan is almost 60 percent bigger than Renault by sales.
So far, Renault has refrained from firing Ghosn as chairman and CEO.
Nissan removed Ghosn at a board meeting on Thursday after allegations of understating his income and using company money for personal use.
Ghosn has denied the allegations, public broadcaster NHK reported on Sunday.
Shares in Mitsubishi Motors closed up 3.3 percent ahead of the announcement while Nissan climbed 1.8 percent, outperforming the broader market's 0.8 percent gain.