Nissan cuts outlook and books Ghosn charges

  • Nissan cuts outlook and books Ghosn charges

Nissan cuts outlook and books Ghosn charges

The company is now looking at operating profit of $4 billion for the year, down from its prior projection, according to the Wall Street Journal.

Upon making his first appearance since his arrest in January, Ghosn has denied any wrongdoing, though results which emerged from a Nissan-Mitsubishi joint investigation found that the former joint chairman received 7.82 million euros in improper payments.

So far the French auto giant has said its internal probe into its former boss has found his pay was in compliance with French law.

The letter sent by Renault's lawyers on January 19 claims that staff at Nissan failed to comply with "standards and rules in force in France, the United States and elsewhere" during the investigation into Mr Ghosn's alleged misconduct.

Strains in the alliance between Renault and Nissan have been laid bare by the publication of a letter from the French carmaker's lawyers accusing its Japanese partner of breaking worldwide law in its inquiry into Carlos Ghosn.

The main factor behind the sharp weakening in profit, however, was the absence of a lift from US tax reforms that sharply boosted Nissan Motor Co.'s earnings in late 2017.

"We were only able to meet 60 percent to 70 percent of our (global) target for the year to the third quarter", Saikawa said. Nissan says it expects to sell 5.6 million units, compared with its prior projection of 5.9 million units, on falling sales in the US and Europe.

Nissan and its domestic rivals, including Toyota Motor Corp, have struggled with sluggish sales and falling profit in North America.

While it has been able to fix some of its profits in North America as inventory reduction of older models enabled it to dial back on heavy USA discounting, falling demand will test Nissan's ability to be disciplined with its incentives. This announcement comes after it was indicted alongside Ghosn with failing to disclose the compensation.

Former head of the alliance Ghosn is being held in Japan on charges he under-reported millions of dollars in pay as head of Nissan.

While it is possible that a Japanese court could order Nissan to pay Ghosn that amount, Saikawa said it was "unlikely" the expense would be realized.