Nissan lowers profit forecast due to Carlos GhosnFebruary 21, 2019
The Japanese company released its first report after the arrest and resignation of Carlos Ghosn, who led the company for almost 20 years. In its report, Nissan reduces the annual forecast for profits and sales.
So, Nissan plans to sell 5.6 million cars worldwide in the fiscal year ending in March. An earlier forecast promised sales of 5.9 million cars. Net income will fall by almost 20% to 410 billion yen or 3.7 billion US dollars.
The company explained the change in predictions of difficulties in its two largest markets – in the US and Europe, as well as the revealed financial frauds of Carlos Ghosn.
New Nissan executives have a difficult task. Over the course of three quarters of the current fiscal year, sales decreased by 8%, but in January, Nissan sales in the United States in January fell by 19% immediately. CEO Hiroto Saikawa said the company is trying to “add value to its brand” and become more competitive in the United States.
In Europe, the level of sales fell by 13% due to the uncertainty associated with the release of the UK from the European Union and the tightening of regulations regarding emissions in general and diesel engines in particular.
Saikawa was more optimistic about Nissan’s prospects in China, the world’s largest car market. However, in 2018, for the first time in two decades, Nissan sales in the Chinese market fell by 3%. “China is in a state of plateau or in a lull, but in the long run the market will grow,” said Hiroto Saikawa.
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