The rapid fall from grace of  automotive legend Carlos Ghosn is reverberating throughout the industry and casts a shadow over the future of the Renault-Nissan-Mitsubishi alliance, the largest automotive group in the world that he created and led. It also sets up a standoff between Japanese and French authorities. Last week, Ghosn was arrested in Japan for allegedly underreporting his pay as chairman of Nissan and using company assets for personal purposes. He reportedly has denied the allegations . Ghosn was ousted from both Nissan and Mitsubishi, where he was also chairman, but he retains his job as chairman and CEO of Renault. Meanwhile, French authorities said they are waiting to see evidence of the executive’s alleged improprieties. Ghosn is a French citizen and the French government holds a 15% stake in Renault, which owns 43% of Nissan. Nissan has a 15% non-voting stake in Renault and owns 34% of Mitsubishi. Ghosn is an industry icon who led the turnaround at both Nissan and Renault.…