Shares in Renault have plunged 10% on Monday after chairman and chief executive has been sacked.

Carlos Ghosn, who is also the chairman of Nissan (TYO: 7201), has been fired by both car manufacturers and has reportedly been arrested in Tokyo after under-reporting his salary.

The report had been revealed by a whistleblower following an in-depth internal investigation into the chairman and chief executive.

Nissan said in a statement: “Over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation.”

“Also, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed.”

“Nissan deeply apologises for causing great concern to our shareholders and stakeholders. We will continue our work to identify our governance and compliance issues, and to take appropriate measures.”

Shares in Renault (ETR: RNL) hit a four-year low and the group’s market value plummeted from €2 billion (£1.78 billion) to €17 billion.

Trading in the group’s shares have ceased trading for the day.

Ana Nicholls, who is an analyst at the Economist Intelligence Unit, said: “The ousting of Carlos Ghosn is not only shocking in itself, but it also brings to a head a question that has long hung over the alliance – how it will survive his departure.”

“The strong bond between the French and Japanese carmakers depends partly on cross-shareholdings but even more on Ghosn’s huge personal influence,” she added.

Nissan has said it will hold a press conference later on Monday.

Shares in Nissan are trading -0.45% (1301GMT).