clearn.png
Thursday July 9th, 2020 11:34PM

Scandal-hit Nissan sinks into losses as sales plummet

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — Nissan, reeling from a scandal over its former superstar executive Carlos Ghosn, sank into red ink in the latest quarter as its vehicle sales fell around the world, and the Japanese automaker slashed its profit forecast for the year.

Nissan Motor Co. reported Thursday a loss of 26 billion yen ($237 million) for October-December, a reversal from the 70 billion yen profit recorded a year earlier.

Quarterly sales slipped nearly 18% to 2.5 trillion yen ($23 billion), as Nissan's vehicle sales fell in Japan, the U.S., Europe and China.

Chief Executive Makoto Uchida told reporters at Nissan's Yokohama headquarters that a turnaround plan was in place, with details to be released in May.

“The situation has worsened, but there is no moment to waste as we must keep investing in future products,” he said. “We are headed in the right direction, but it will take time.”

He acknowledged Thursday's results didn't take into account possible damage from production halts in China caused by the new virus outbreak, and further downward revisions may be coming.

Nissan's plants in China have halted, although preparations are underway to resume production later in the month. But whether such restarts can happen remains uncertain, not just for Nissan but also other manufacturers in China.

Some production was being scaled back at Nissan's Japan plants, although that was to be made up when the supply chain recovers, possibly next month, according to Nissan.

Nissan slashed its profit forecast for the fiscal year through March 2020, to 65 billion yen ($592 million), falling far short of its earlier forecast for a 110 billion yen ($1 billion) profit.

It now expects to sell 5.05 million vehicles globally for the fiscal year, a decrease of 4% from the previous forecast.

Shareholders will get zero yen in dividends for the latest quarter.

Nissan's brand has been badly tarnished by Ghosn's arrest in late 2018 on charges of under-reporting future compensation and of breach of trust in diverting company money for personal gain.

Ghosn, who has repeatedly said he is innocent, skipped bail late last year and is now in Lebanon. He held a news conference and accused Nissan officials of a conspiracy against him.

He has said Nissan and some Japanese government officials sought to block his attempts to realize a fuller merger with alliance partner Renault SA of France.

Nissan has sought to distance itself from the allegations against Ghosn. It filed a civil suit this week against him seeking damages. His lawyers have not yet commented on the suit.

In it, Nissan is accusing Ghosn of improperly using Nissan money for such things as overseas homes, use of corporate jets and consulting fees paid to Ghosn's sister.

Nissan as a company must also stand trial in the criminal case in Japan.

Japan does not have an extradition treaty with Lebanon and so Ghosn's trial likely won't go forward here.

Greg Kelly, an American former executive at Nissan who was implicated in the charges against Ghosn, will stand trial.

A date for the trial has not been set.

Ghosn has said he fled because he could not get a fair trial. The conviction rate in Japan is higher than 99%.

Uchida took over the helm of the manufacturer of the Leaf electric car, Infiniti luxury models and the X-Trail SUV in December, replacing Ghosn's successor, Hiroto Saikawa.

Saikawa tendered his resignation last year after acknowledging dubious income, although he said he did not know about the pay until later.

___

Yuri Kageyama on Twitter: https://twitter.com/yurikageyama

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Scandal-hit Nissan sinks into losses as sales plummet
Nissan, reeling from a scandal over its former superstar executive Carlos Ghosn, says it sank into red ink for the latest quarter as its vehicle sales fell around the world
5:00AM ( 15 minutes ago )
UK regulators probe Barclays CEO's link to Jeffrey Epstein
Britain’s financial watchdog is investigating whether Barclays chief executive Jes Staley disclosed full details of his relationship with the late convicted sex offender Jeffrey Epstein
4:49AM ( 26 minutes ago )
Airbus CEO sees no short-term benefit from Boeing MAX woes
Airbus' chief executive says his company sees no short-term benefit from Boeing's troubles with its grounded 737 MAX because the competing A320 is sold out years ahead
4:47AM ( 28 minutes ago )
Associated Press (AP)
Cruise ship turned away in other ports anchors off Cambodia
A cruise ship that was turned away elsewhere over virus fears has anchored off Cambodia, which is checking the health of its 2,200 passengers and crew
3:07AM ( 2 hours ago )
EU chief von der Leyen to testify at German defense inquiry
The European Commission's president will testify before a German parliamentary committee investigating whether there was wrongdoing in the use of external experts during her time as defense minister
2:51AM ( 2 hours ago )
Warren Buffett's son helps Colombia kick cocaine curse
The eldest son of billionaire investor Warren Buffett is spending $200 million to help Colombia kick its cocaine curse
12:01AM ( 5 hours ago )
AP Business
Pope avoids question of married priests in Amazon document
Pope Francis has refused to approve the ordination of married men to address the priest shortage in the Amazon
6:53PM ( 10 hours ago )
Argentina and IMF discuss debt in shadow of 2001 crisis
Argentina has been here before: recession, growing poverty, high inflation, billions of dollars in debt, a looming deadline for repayment and simmering anger toward the International Monetary Fund
5:29PM ( 11 hours ago )
Solid earnings send stock indexes higher on Wall Street
Stocks are closing broadly higher on Wall Street Wednesday, driving the S&P 500 and Nasdaq indexes to more record highs
5:10PM ( 12 hours ago )
AP Business - Corporate News
UK regulators probe Barclays CEO's link to Jeffrey Epstein
Britain’s financial watchdog is investigating whether Barclays chief executive Jes Staley disclosed full details of his relationship with the late convicted sex offender Jeffrey Epstein
4:49AM ( 26 minutes ago )
Airbus CEO sees no short-term benefit from Boeing MAX woes
Airbus' chief executive says his company sees no short-term benefit from Boeing's troubles with its grounded 737 MAX because the competing A320 is sold out years ahead
4:47AM ( 28 minutes ago )
China reports 254 new virus deaths, cases, using new method
China has reported 254 new daily deaths and a spike in new daily virus cases of 15,152, after new methodology was applied in the hardest-hit province of Hubei as to how cases are categorized
4:43AM ( 32 minutes ago )
Asian shares mostly lower as new China virus cases spike
Asian shares are mostly lower as reported cases of the new virus jumped in Chins
4:30AM ( 45 minutes ago )
Airbus shows loss for 2019 due to big bribery settlement
Plane maker Airbus lost money last year because of a big bribery settlement
4:27AM ( 48 minutes ago )