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Scandal-hit Nissan’s profit tumbles | The West Australian

Nissan’s July-September profit tumbled to half of what it earned the year before as sales and brand power crumbled following the arrest of its former chairman, Carlos Ghosn.

Japanese car maker’s fiscal second-quarter profit totalled 59 billion yen ($A790 million), down from 130 billion yen in 2018.

Quarterly sales slipped nearly 7.0 per cent to 2.6 trillion yen, falling globally, including in the key US, European and Japanese markets.

Ghosn was arrested in November 2018. He is out on bail but faces strict limits on its activities. It’s unclear when his trial might start.

The allegations against Ghosn include under-reporting of promised compensation and breaching trust in making dubious payments

Nissan has also been charged as a corporate entity. The company has vowed to improve governance, corporate culture and ethical standards.

But worries linger over leadership at the maker of the March subcompact, Leaf electric car and Infiniti luxury models. Ghosn had tremendous power at Nissan for nearly two decades.

Hiroto Saikawa, his successor, stepped down in September after acknowledging he had received dubious income. Saikawa has not been charged. Nissan has said that an internal investigation found the money he received was not illegal.

Another Nissan veteran, Makoto Uchida, was named as Saikawa’s successor, effective December 1.

Uchida has headed Nissan’s China business, a key market for global automakers. He has not yet appeared before reporters to explain the company’s strategy or policies.

Also Tuesday, Nissan slashed its full year profit forecast through March 2020 to 110 billion yen from the earlier estimate of 170 billion yen, citing poorer sales and unfavourable currency rates.

A recovery was coming, officials said.

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