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The shares of Nissan on Monday slumped by six per cent in Tokyo trade after the arrest of the firm’s chairman, Carlos Ghosn.
According to Japanese prosecutors, Ghosn under-reported his income by 5billion yen ($44.4m; £34.5m) over five years.
He is also said to have used company assets for personal purposes.
On Monday, Mr Ghosn’s own firm said an internal investigation prompted by a whistleblower had revealed “significant acts of misconduct”.
Nissan is the world’s sixth-largest carmaker and its site in Sunderland is the UK’s biggest car plant. Mr Ghosn also heads up the Japanese-French alliance Renault-Nissan-Mitsubishi.
He is expected to be fired from Nissan after a board meeting on Thursday. The boards of Mitsubishi and Renault were also meeting this week to discuss Mr Ghosn’s future, according to reports.
Shares in Mitsubishi, according to BBC were also down more than 7% in early Tokyo trade, while Renault’s shares lost more than than 8% in Europe.
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