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Nissan's Ghosn crisis

French prosecutors open probe into Ghosn wedding

Use of Versailles suspected of being reward for Renault charitable donation

Former auto executive Carlos Ghosn held his wedding at the Grand Trianon at Versailles in October 2016. (Nikkei montage/Reuters)

PARIS -- French prosecutors have launched an investigation into allegations that former Renault Chairman Carlos Ghosn received improper benefits from the historic Chateau de Versailles.

The probe, reported by AFP, marks the first such inquiry into Ghosn's activity in France. The former executive, who also served as chairman at Nissan Motor and Mitsubishi Motors, is expected to hold a news conference as early as this week in Tokyo.

The new development has the potential to affect public opinion in France.

In February, Renault alerted French prosecutors to a sponsorship deal that had been signed with Versailles in June 2016. In what is suspected to have been a returned favor for a charitable donation, Ghosn held his wedding at the Grand Trianon at Versailles in October that year.

The prosecution is looking into whether the 50,000 euro rental fee for the palace was waived for Ghosn's personal benefit.

Renault, Nissan and Mitsubishi are in the process of establishing a new management scheme following Ghosn's departure, and will hold a joint news conference at Nissan's Yokohama headquarters on Tuesday.

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