Thursday 23 May 2019

Nissan slashes its full-year profit forecast

Automotive

Former Nissan Motor Chairman Carlos Ghosn
Former Nissan Motor Chairman Carlos Ghosn

Independent.ie newsdesk

Nissan has slashed its full-year profit forecast to its lowest in nearly a decade due to weakness in the United States, just as it adjusts to life without Carlos Ghosn and charts its future with alliance partner Renault.

The Japanese carmaker expects operating profit for the year ended March to drop 45pc versus a year earlier to JPY318bn (€2.5bn), from a previous forecast for JPY450bn, on expenses related to extending vehicle warranties in the US, its biggest market.

Nissan also blamed the arrest of former chairman Ghosn for tarnishing its brand and contributing to the decline in profit to the lowest since the year ended March 2010.

This is the second cut to the carmaker's operating profit forecast in two months, and adds pressure on CEO Hiroto Saikawa just as he works to draw a line under Mr Ghosn's legacy by overhauling corporate governance and seeking a more equal footing with Renault, Nissan's biggest shareholder.

Reuters

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