Carlos Ghosn has long demonstrated strong leadership as head of Nissan Motor. It is almost certain that his arrest will force the automaker to review its business strategy.
Ghosn was arrested on Monday on suspicion of underreporting his income by 5 billion yen, or about 44 million dollars. Another Nissan executive, Greg Kelly, was also apprehended.
Nissan's President Hiroto Saikawa told reporters on Monday that he believes the power concentrated in the hands of one person was one of the factors behind the incident.
Ghosn moved from French automaker Renault to its partner Nissan in 1999 to rescue the then-ailing the Japanese carmaker using cost-cutting means.
He has worked to maintain the alliance between Nissan, Mitsubishi Motors and Renault, of which the French government is a major shareholder.
Nissan plans to launch a panel of third-party experts and others as soon as possible to look into the case.