New allegation filed against Nissan’s Ghosn

New allegation filed against Nissan’s GhosnTokyo – Japanese prosecutors added a new allegation of breach of trust against Nissan’s former chairman Carlos Ghosn on Friday, dashing his hopes for posting bail quickly.
Ghosn and another former Nissan executive, Greg Kelly, were arrested Nov. 19 and charged with underreporting Ghosn’s income by about 5 billion yen ($44 million) in 2011-2015. They also face the prospect of more charges of underreporting Ghosn’s income for other years by nearly 10 billion ($80 million) in total.
The breach of trust allegations were filed a day after a court rejected prosecutors’ request for a longer detention of both men. The new allegation only applies to Ghosn, and Kelly could still be bailed out. A request for bail by Kelly’s lawyer is pending court approval, according to the Tokyo District Court, but his release will have to wait until next week since the request was still in process after office hours Friday.
Prosecutors in a statement Friday alleged that Ghosn in 2008 transferred a private investment loss worth more than 1.8 billion yen ($16 million) to Nissan by manipulating an unspecified “swap” contract. Ghosn also profited by having the company transfer a total of $14.7 million to another company to benefit himself and that company’s owner, who helped in the contract manipulation, prosecutors said. Japan’s NHK public television said the company owner is a Saudi Arabian acquaintance of Ghosn.
Shin Kukimoto, deputy chief prosecutor at the Tokyo District Prosecutors Office, refuse to say if the two transactions were related or how Ghosn illegally profited. He also declined to identify the collaborator or whether the transactions were made overseas.
Ghosn and Kelly are only charged with underreporting Ghosn’s pay over five years, in violation of the Financial Instruments and Exchange Act. They have not been formally charged with an additional allegation of underreporting another 4 billion yen ($36 million) for 2016-2018, for which their first 10-day detention was to expire Thursday.
Prosecutors have been criticized for separating the allegations as a tactic to detain Ghosn and Kelly longer. They say Ghosn and Kelly are flight risks.
The Tokyo District Court, in an extremely rare statement Friday, cited overlapping points of contention and evidence between the two allegations as the reason for Thursday’s decision, NHK said. “There was no compelling reason to justify further extension of their detention.”
The maximum penalty for violating the financial act is up to 10 years in prison, a 10 million yen ($89,000) fine, or both. Breach of trust also carries a similar maximum penalty. The conviction rate in Japan is more than 99 percent for any crime.
Ghosn, 64, was sent by Renault in 1999 to turn around Nissan, then on the verge of bankruptcy, and he led its rise to become the world’s second-largest automaker. The arrest of an industry icon has triggered international attention and the scandal has raised concerns over the financial health of the Japanese automaker and the future of its alliance with Renault SA of France.
Nissan has said its own investigation found serious misconduct including underreporting of Ghosn’s income and misuse of company assets. His downfall is seen by some as a maneuver by others at Nissan to gain power in the alliance.
Ghosn was quoted by his lawyer as saying that he is determined to prove his innocence in court and restore his honor, NHK reported Friday. Ghosn also hopes to hold a news conference when he is released.
Kelly’s wife, Donna Kelly, said in a video message carried by TV Asahi and other networks that her husband was “wrongly accused as part of a power grab” at Nissan. “Greg and Mr. Ghosn fully believe that they did not break the law,” she said.
Nissan dismissed Ghosn as chairman and Kelly as a representative director. It has put off a decision on Ghosn’s replacement.
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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BMW fined $10M, faces criminal probe for engine fires

BMW fined $10M, faces criminal probe for engine firesBMW AG is facing a criminal probe in South Korea after investigators concluded the manufacturer concealed fire hazards and delayed recalls for a problem that has dented sales and its reputation in the Asian country.
South Korea’s transport ministry plans to ask prosecutors to investigate the German carmaker, the ministry said in a statement on Monday. Korea also fined BMW 11.2 billion won ($10 million) for belatedly recalling 22,670 vehicles. The team that’s been investigating BMW since August found defects that could cause coolant to leak and set the engine on fire.
The move threatens to prolong the Munich-based company’s woes in a country where there have been nearly 40 cases of BMW fires reported this year. The carmaker, which has recalled 1.6 million vehicles worldwide over the issue, has seen its sales in Korea fall about 10 percent during the first 11 months of the year as videos went viral of the luxury cars being engulfed in flames.
BMW’s Korea branch apologized in a statement released after the announcement and said it will cooperate with ongoing investigations.
The Korean probe adds to the challenges at BMW as it prepares to begin a new year fraught with potential hazards from a trade war between the U.S. and China, and a drop in car sales in China, the world’s biggest car market. BMW is also raising spending to develop new electric and self-driving vehicles. The strains have been evident, with the Stoxx Europe 600 Automobiles & Parts Index having declined about 27 percent this year and both BMW and rival Daimler AG lowering 2018 profit targets.
The BMW defect also prompted the carmaker to do a voluntary recall of 323,700 vehicles in Europe, with about 96,000 of those in Germany. BMW had said it would begin replacing starting Aug. 20 the EGR coolers and modules in the recalled cars covering 42 models, including the popular 520d and 320d produced between 2011 and 2016.
BMW shares closed 0.1 percent higher on Friday in Frankfurt, the last trading day before the Christmas holiday, trimming losses to 17 percent for the year.
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Ghosn’s detention puts Japan justice system under microscope

Ghosn’s detention puts Japan justice system under microscopeTokyo – Since his arrest on suspicion of falsifying financial reports, Nissan’s former Chairman Carlos Ghosn has been sitting in a humble cell for more than a month, interrogated day in and day out, without a lawyer present.
His case is drawing attention to the criminal justice system in Japan, where there is no presumption of innocence and the accused can be held for months before trial. The system, sometimes called “hostage justice,” has come under fire from human rights advocates.
When a court denied Tokyo prosecutors’ request to detain Ghosn another 10 days on Dec. 20, it was so unusual that the Japanese media reported he might be released. But such speculation was dashed when prosecutors rearrested him a day later on suspicion of breach of trust, tagging on a new set of allegations centered on Ghosn’s shifting personal investment losses of some 1.8 billion yen ($16 million) to Nissan Motor Co. On Sunday, a court approved prosecutors’ request to detain him through Jan. 1.
But his plight is routine in Japan. People have signed confessions, even to killings they never committed, just to get out of the ordeal.
A trial could be months away and could drag on even longer. And his chances aren’t good: The conviction rate in Japan is 99 percent.
Those close to Ghosn and his family say he is asserting his innocence. But it is unclear when release may come for Ghosn, who led a two-decade turnaround at Nissan from near-bankruptcy. Tokyo prosecutors consider Ghosn, a Brazilian-born Frenchman of Lebanese ancestry, a flight risk.
Other nations may have legal systems that are criticized as brutal and unfair. The U.S., for instance, has its share of erroneous convictions, police brutality and dubious plea bargains. But, in the U.S., a person is presumed innocent, has the right to have an attorney present and gets freed within 72 hours if there is no charge.
Carl Tobias, a professor at the University of Richmond’s School of Law, said such a longtime detention is highly unusual in the U.S.
“Each time the government reaches a deadline where Ghosn might be released, the government files new allegations and rearrests,” he said.
Deputy Chief Prosecutor Shin Kukimoto said prosecutors are merely doing their job of “trying to carry out a proper investigation.”
When asked by a reporter about “hostage justice,” he replied: “We are not in a position to comment on how the law has been designed.”
Under such a system, those who insist on innocence end up getting detained longer. Once the rearrest processes run out and a suspect is formally charged, bail is technically possible but often denied until the trial starts because of fears about tampered evidence.
“It is good that the world will learn how wrong Japan’s criminal system is through the case of this famous person. It is something even many Japanese don’t know,” says Seiho Cho, a lawyer in Tokyo and an expert on criminal defense. “Countless people have gone through horrible experiences.”
A famous case is Iwao Hakamada, a professional boxer, who served 48 years in prison, mostly on death row after he signed a confession under questioning and was convicted of killing a family of four. He was freed in 2014 after DNA tests determined blood at the crime scene wasn’t Hakamada’s, and a court ruled police had likely planted evidence. Boxing champions had rallied on his behalf.
A true-life story of a man who refused to sign a confession that he groped a woman on a crowded commuter train became a popular 2007 movie “I Just Didn’t Do It,” directed by Masayuki Suo. The film depicts a five-year legal battle for exoneration, highlighting the burden of proof of innocence was on the accused.
In the U.S., defense lawyers tend to be vocal, but in Japan, it is fairly standard – as in the case of Ghosn – for them to stay silent, especially before trial, because that’s considered better for the suspects. Lawyers are allowed to visit clients in detention.
Ghosn has been formally charged in the initial set of allegations, underreporting his income by about 5 billion yen ($44 million) for five years through 2015. The maximum penalty for violating Japan’s financial laws is 10 years in prison, a 10 million yen ($89,000) fine, or both.
Greg Kelly, an American Nissan executive who was arrested with Ghosn, has been similarly charged with collaborating on underreporting Ghosn’s income. Kelly was not rearrested on the latest breach of trust allegations. Kelly’s U.S. lawyer says he is innocent and abided by company policy.
Nissan has also been charged as a legal entity, but no person besides Ghosn and Kelly has been charged or arrested. Nissan executives repeatedly say an internal investigation that began in the summer showed clear and serious wrongdoing, which went unnoticed for so long because of complex schemes “masterminded” by Ghosn and Kelly.
They went to the prosecutors, resulting in the surprise Nov. 19 arrests, and are cooperating closely with the investigation.
Being accused of a crime is devastating in a conformist insular society like Japan. Family members also become targets of discrimination, spurned for marriage and ostracized. Some commit suicide.
Cho, the lawyer, said the long detention and trial mean people lose their jobs, reputation, sometimes their families. But he still had this advice: Whatever you do, don’t confess to anything you didn’t do as that just makes it worse.
“Don’t ever compromise on your innocence,” he said.
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Ford to recall 410K F-Series pickups for fire risk

Ford to recall 410K F-Series pickups for fire riskDetroit – Ford is recalling more than 874,000 F-Series pickups with engine block heaters in the U.S. and Canada because they can catch fire.
The recall covers certain F-150s from the 2015 through 2019 model years, as well as the 2017 through 2019 F-250, 350, 450 and 550.
The company says in documents posted Friday on the U.S. National Highway Traffic Safety Administration website that water and contaminants can get into the heater cable and cause corrosion. That can cause electrical shorts and possible fires. Engine block heaters warm the engines so they can start and warm up faster in extreme cold temperatures.
The company says the risk of fire happens only when the block heater cable is plugged into an electrical outlet.
Ford has received three reports of fires in Canada, but none in the U.S. Minor property damage was reported in one incident, but there haven’t been any reports of injuries, Ford said in a statement.
Dealers will inspect and seal the cable or replace the heaters if needed. The recall is expected to start in the U.S. on Jan. 7.
F-Series pickups are the top-selling vehicle in the United States.
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Window tint legalization bill rolls to Snyder’s desk

Window tint legalization bill rolls to Snyder’s deskLansing — The Michigan Senate on Thursday gave final approval to legislation that would loosen restrictions on tinted windows and rear-view mirror decorations like fuzzy dice.
Under the proposal, approved in a narrow 20-18 vote and now headed toward Gov. Rick Snyder’s desk, motorists could have modest tint on their driver- and passenger-side windows, so long as it allows roughly 70 percent of light to pass through.
All of the Senate Democrats voted against the proposal except Sen. Ian Conyers of Detroit. Eight Republicans also opposed the measure, including Sens. Patrick Colbeck of Canton Township, James Marleau of Lake Orion and Mike Shirkey of Clarklake.
Current law allows only a four-inch tint strip at the top of those windows and the front windshield, an allowance would be extended to six inches under the legislation.
The proposal would allow cars to have darker tint on their rear windshield and rear side windows allowing roughly 25 percent of visible light to pass through.
It wasn't apparent how many drivers were getting ticketed under the current law. “It is not known how much revenue potentially could be lost as a result of the bill's reduced civil infractions, but it is expected to be minimal,” according to a Senate Fiscal Agency analysis.
The legislation would also lift a blanket prohibition on operating a motor vehicle if there is any object that obstructs the vision of the driver, including decorations hanging from rear-view mirrors.
joosting@detroitnews.com
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Unifor, UAW turn up the heat on GM

Unifor, UAW turn up the heat on GMThe unions representing U.S. and Canadian auto workers are intensifying their public campaign to keep open five General Motors Co. plants in North America.
As Canadian trade union Unifor argued its case Thursday at GM's Renaissance Center headquarters to keep open the automaker’s Oshawa Assembly Plant in Ontario, the United Auto Workers organized a vigil at the endangered Detroit-Hamtramck Assembly plant.
Unifor National President Jerry Dias said in a press conference in Windsor following his meeting with GM that the conversation was “frustrating,” but says GM did not “unilaterally shut the door.” Dias said the automaker has promised to consider Unifor's concerns and come back with any decisions by Jan. 7.
Unifor's summit with GM leaders comes as the union used four-page ads in Detroit newspapers to chastise the automaker for manufacturing in Mexico at the same time it readies to idle one plant in Canada and four plants plants in the U.S. next year. Unifor amped up efforts to keep Oshawa Assembly running last week with the launch of a social media campaign dubbed #SaveOshawaGM.
Dias held up the front-page wraparound ad during a press conference after his meeting with GM and said it was a message for the automaker and for workers in the U.S.
“The problem isn’t with the American auto worker,” Dias said. “We are standing here with American auto workers that are going to be impacted, and we are here to stand hand in hand with our sisters and brothers who work for GM in the U.S.”
Meantime, the UAW organized a vigil at GM's Detroit-Hamtramck Assembly, which will wind down production entirely by June 1, affecting some 1,350 union-represented workers at the plant. Workers at Detroit-Hamtramck build the Buick LaCrosse, Cadillac CT6, Chevrolet Impala and plug-in hybrid Chevrolet Volt, all of which will permanently cease production next year.
Workers at Oshawa build the Chevrolet Impala and Cadillac XTS, which will be discontinued when production of those vehicles stops at the end of 2019. GM has not yet allocated new product to the plant, which is also winding down production of previous-generation Chevrolet Silverado and GMC Sierra pickups.
Unifor has asked GM to consider continuing production of the older trucks while it looks for a longer-term option.
“The GM restructuring decisions are extremely difficult for Oshawa, but we believe the best approach is to work together to support our employees including support for local training and transition initiatives in the Durham Region,” GM said in an emailed statement following the Thursday meeting with Unifor. “We remain committed to Canada and will continue to engage in dialogue with Unifor.”
Oshawa and Detroit-Hamtramck are among the five plants in the U.S. and Canada GM said it would idle next year as part of a sweeping restructuring of its manufacturing operations and workforce. GM will also cut some 8,000 white-collar jobs by leveraging about 6,000 layoffs. The other U.S. plants include Warren Transmission, Baltimore Operations in Maryland and the Lordstown Complex in northeast Ohio.
Lordstown, which builds the soon-to-be-discontinued Chevrolet Cruze, has become the object of Tesla CEO Elon Musk's desire after he told Lesley Stahl of CBS's “60 Minutes” that he may be interested in using Lordstown as his electric car company looks to grow.
GM's Lordstown plant is not currently for sale. Union representation at the facility poses a problem for Musk, who has fended off UAW-organizing efforts at Tesla's only assembly plant in Fremont, Calif. But Morgan Stanley analyst Adam Jonas said in a report Thursday that he sees a potential for Tesla in Lordstown.
“We merely ask investors to play out a scenario where Elon Musk potentially makes an offer to save the Lordstown plant (saving thousands of jobs in the Lordstown/Youngstown region) that is slated to be shut down over a dispute about EV incentives and labor union negotiations,” Jonas wrote. “In our opinion, given the parties involved in this story … we think there is a distinct possibility that the event path could evolve into something with greater significance for the stocks involved.”
The Detroit automaker said last week it would be able to offer new positions to roughly 2,700 of the 2,800 active U.S. hourly employees affected by the plant idlings. For Canadian workers, GM says it is working with dealers, local colleges and other employers to train and help secure jobs for impacted workers.
“The simple reality is we need to find a solution,” Dias said. Unifor's “campaign will escalate, it will not die down.”
nnaughton@detroitnews.com
Twitter: @NoraNaughton
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First self-driving Uber returns since pedestrian death

First self-driving Uber returns since pedestrian deathUber Technologies Inc., which halted its self-driving car program after the death of a pedestrian in March, will return one or two self-driving cars to public roads in Pittsburgh on Thursday, the company said.
Uber said it received the all-clear from the Pennsylvania Department of Transportation this week. The self-driving car program has been suspended as the National Transportation Safety Board investigated the pedestrian fatality in Tempe, Arizona, and as state officials reviewed Uber’s authorization.
This is the first time Uber is returning autonomous vehicles to public roads since the accident. In order to collect data, Uber had previously deployed some autonomous vehicles in manual mode, meaning that human drivers were operating them at all times. On Thursday, Uber will also deploy cars in San Francisco and Toronto in the manual, human-driven mode.
True autonomous testing will resume in Pittsburgh, but it will be more limited than before. Uber’s cars will drive at speeds of 25 miles per hour or below, the company said. Uber announced a number of other safety measures, including improvements to braking, operator training and driver monitoring.
“Over the past nine months, we’ve made safety core to everything we do,” said Eric Meyhofer, head of Uber’s Advanced Technologies Group.
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Steering failure complaints in some Ram pickups probed

Steering failure complaints in some Ram pickups probedDetroit – The U.S. National Highway Traffic Safety Administration is investigating complaints that the steering can fail on some Ram pickup trucks.
The investigation covers about 200,000 Ram 2500s from the 2015 and 2016 model years.
The government agency said Thursday that it has two complaints that the linkage between the steering box to the front wheels can come apart.
One owner complained that the problem happened while rounding a curve at 65 to 70 mph. The driver lost steering and the truck went off the right side of the road, hitting ditches before stopping on the shoulder. One injury was reported.
In both cases the problem was traced to a mechanism used to align the steering system.
Investigators will determine how often the problem happens and whether a recall is needed.
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Canadian union to GM: 'Keep our plants open'

Canadian union to GM: 'Keep our plants open'The trade union that represents Canada's autoworkers is using General Motors Co.'s hometown newspapers to deliver a message as top union officials arrive in Detroit on Thursday to meet with the automaker's leaders.
“U.S. and Canadian workers made GM,” reads the front page of an advertisement wrapping the Thursday editions of The Detroit News and Detroit Free Press. “Why should our jobs and our products go to Mexico? Keep our plants open.”
Unifor, a Canadian general trade union representing auto workers at GM's endangered Oshawa, Ontario, plant and elsewhere, is using the ad to urge GM to reconsider plans that would see four plants in the U.S. and one in Canada idled next year.
Inside, the four-page ad speaks directly to the automaker: “GM, if you sell here you have to build here.” The back page of the ad is designed to be displayed in a window with the text, “I support GM workers.”
Ahead of its trip to Detroit, Unifor held a rally on the Detroit River in Windsor on Wednesday, in view of GM's Renaissance Center headquarters. Unifor officials are expected to meet with GM at the headquarters to discuss the future of the Oshawa Assembly plant as well as other GM operations in Canada.
“GM made commitments to invest in Canada but instead seems intent on continuing to bleed away Canadian production and jobs while it continues to expand in Mexico,” Unifor National President Jerry Dias said in a statement confirming the Thursday meeting with GM officials. “Unifor will be making it clear that if GM expects to sell in Canada then it needs to build in Canada.”
Both the United Auto Workers and Unifor have criticized GM for building abroad too many vehicles sold in the U.S. and Canada. The unions — and federal lawmakers — have lambasted GM for its decision to build the upcoming Chevrolet Blazer at its plant in Ramos, Mexico. The UAW also challenged GM's ability to “unallocate” the plants outside of contract negotiations.
GM already imports from Mexico the Chevrolet Equinox, Trax and Cruze hatchback, as well as the GMC Terrain. The automaker imports one vehicle from China, the Buick Envision. Its three Buick Regal models are assembled in Germany, and its compact Buick Encore SUV is built in South Korea.
On the Monday after Thanksgiving, when some workers were still on holiday vacation, GM announced a sweeping restructuring of its workforce and manufacturing operations that would stop production at five plants and would cut some 8,000 white-collar jobs. The U.S. plants include Detroit-Hamtramck Assembly, Warren Transmission, the Lordstown Complex in northeast Ohio, and Baltimore Operations in Maryland.
The Detroit automaker said last week it would be able to offer new positions to roughly 2,700 of the 2,800 active U.S. hourly employees affected by the plant idlings. For Canadian workers, GM is working with dealers, local colleges and other employers to train and help secure jobs for impacted workers.
“I understand how GM's recent news is affecting our colleagues, families and communities,” GM CEO Mary Barra wrote in a Friday tweet. “Our focus remains on helping employees … We're committed to doing the right thing, for the future of GM and our people.”
nnaughton@detroitnews.com
Twitter: @NoraNaughton
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