Nissan became 'out of control' with their power: Flemington Family of Brands Chairman

The arrest of Nissan Chairman Carlos Ghosn will encourage other whistleblowers to come forward, according to Steve Kalafer, Flemington Family of Brands Chairman.

“Everybody now feels empowered to speak freely,” Kalafer said during an interview on FOX Business’ “Countdown to the Closing Bell” on Tuesday.

Ghosn, one of the most high-profile automotive executives, was arrested in Japan following an internal investigation revealing serious financial irregularities sending shockwaves through the auto industry.

Kalafer, who has 42 years of experience as an auto retailer, said Nissan has performed in nefarious business practices.

“Corruption could either be a prosecutor’s act or it can be unethical behavior, he said. “Nissan has acted in unethical ways dealing with their employees, their dealers and their customers.”

Nissan’s chairman and its representative director Greg Kelly reduced the disclosed amount of Ghosn’s compensation by hiding the company’s compensation amounts from the Tokyo Stock Exchange securities report.

Kalafer said the auto company became “out of control” with the power over their dealers and their employees.

“There was never allowable decent in corporate headquarters,” Steve Kalafer said.

Nissan apologized to its shareholders and stakeholders in a statement saying, “Nissan will continue its work to identify governance and compliance issues, and to take appropriate measures.”