Compounding Carlos Ghosn debacle, Nissan slashes profit outlook
The Japanese car maker expects operating profit for the year to end-March to drop 45% compared to 2018, citing Ghosn as part of the reason
Tokyo — Nissan slashed its full-year profit forecast to its lowest in nearly a decade due to weakness in the US, just as it adjusts to life without Carlos Ghosn and charts its future with alliance partner Renault. The Japanese car maker expects operating profit for the year to end-March to drop 45% compared to the same period in 2018 to ¥318bn ($2.84bn), from a previous forecast for ¥450bn, on expenses related to extending vehicle warranties in the US, its biggest market. Nissan also blamed the arrest of former chair 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 automobile maker’s operating profit forecast in two months, and adds pressure on CEO Hiroto Saikawa just as he works to draw a line under Ghosn’s legacy by overhauling corporate governance and seeking a more equal footing with Renault, Nissan’s biggest shareholder. At its full-year results on May 14, the Nissan will book a...
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