Nissan boss Carlos Ghosn arrested over misconduct

Nissan chairman Carlos Ghosn has been arrested following shock claims that he under-reported his income and used corporate assets for personal gain, the Japanese car-maker has confirmed.

Accused of "significant acts of misconduct", Ghosn will be sacked on Thursday after an emergency board meeting with high-ranking Nissan executives.

Nissan said it was unable to give further details on the offences Ghosn is accused of but, speaking at a press conference in Japan overnight, Nissan chief executive Hiroto Saikawa said: "I feel despair, indignation and resentment".

Japanese prosecutors have not publicly commented on the arrest of the Nissan chairman.

The Ghosn allegations were reportedly triggered by a whistle-blower and, following an internal investigation that lasted several months, Nissan called in the authorities.

Speculation within the Japanese media suggests Ghosn under-reported his earnings by around five billion yen ($A61 million) over a period of five years.

As well as Ghosn's arrest, Nissan said it also intends to terminate senior executive Greg Kelly, a close aid to the Nissan chair.

Kelly, who was also arrested overnight, is thought to face similar charges to his boss.

As well as being chairman of Nissan, Ghosn is chairman and chief executive of Renault, chairman of Mitsubishi and chair of the Renault-Nissan-Mitsubishi strategic alliance.

Following Ghosn's arrest, Renault shares slumped by an incredible 13 per cent.

Ghosn, who has almost iconic status in Japan, has been one of the world leaders in the motor industry for more than two decades.

Over that period, he has been credited as the saviour of both Renault and Nissan, plucking the latter Japanese car-maker from the brink of bankruptcy and dragging it back to profitability.

Last year, in a bid to further reduce the stratospheric cost of R&D, Ghosn was the architect of adding Mitsubishi to the alliance, in the process creating one of the world's biggest car-makers.

Earning the nickname 'cost-killer', Ghosn was ruthless in his pursuit of profit margins, slashing jobs and closing factories, after Renault bought a controlling stake in Nissan back in 1999.

The new scandal comes just months after Renault shareholders narrowly approved a €7.4 million ($A11.6m) pay package.

It's thought Ghosn's departure will create a huge power vacuum within the Renault-Nissan-Mitsubishi alliance.

Addressing these concerns, French president Emmanuel Macron said he would work with the car-making giant to preserve the stability of Renault as France owns a 15 per cent stake in the French car-maker.

Just over a week ago, Macron and Ghosn announced a new investment in a French factory that will produce the next Renault Trafic and a belated replacement for the Mitsubishi Express van, which is due in Australia in 2020.