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Crisis-hit Nissan issues fresh profit warning | Business | M&G

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Nissan issued a profit warning on Wednesday, deepening the woes of the Japanese car giant as it seeks to recover from the shock of former boss Carlos Ghosn’s arrest.

The firm downgraded its projection for net profit in the fiscal year to March 2019 from 410-billion yen to 319-billion yen, the second cut in its forecast in recent months.

Another reason was given as “additional expenses arising from the implementation of a warranty extension campaign covering certain vehicles sold in the US market.” Ghosn denies that charge and also insists he is innocent of all allegations against him. His lawyers have filed for bail which the Tokyo District Court is considering.

In a complicated management structure, Renault — 15% of which is held by the French state — owns a 43% stake in Nissan. Ghosn was ousted as head of Nissan and Mitsubishi Motors almost immediately after his arrest and later resigned as chairman and CEO of Renault.

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