Mon. Aug 26th, 2019

Nissan gains 45% less in the middle of the storm due to the Ghosn case

Nissan gana el 45% menos en medio de la tormenta por el caso Ghosn

The Japanese Nissan obtained between April and December 2018 a net benefit of 2,538 million euros, 45.2% less year-on-year and cut its forecasts for the entire year. In the results have impacted the fall of 2.1% of sales, to 4.02 million units, especially by the decrease in the United States (8.4%) and Europe (13.2%).

The company blames the downs on reputational damage to its image due to the Ghosn case; to the entry into force of the new international protocol for WLTP emissions for light vehicles, which has limited demand; the uncertainty of Brexit, which weighs on demand in Europe; and that it no longer has the momentum of Trump's tax reform that did benefit it in the past.


Revise the sales and profit forecasts downwards

This Tuesday is the first results that Nissan publishes after the arrest in Japan on November 19 of former President Carlos Ghosn for allegedly not having declared part of his income and having violated Japan's business regulations by using it to cover personal losses and make unjustified payments.

In the quarter from October to December, after the outbreak of the scandal, it registered a profit of 564 million euros, 76.7% less, mainly due to a decrease in sales in the United States.

All this has weighed on the forecasts of the brand, which have been revised downwards. Thus, it expects to pocket a profit of 3,286 million in its fiscal year, which ends in March, 18% less. Sales, on their part, will fall 3.3% in relation to the previous forecast, to 24,415 million euros.


Aiming 74 million euros for the agreements with Ghosn

The company has valued in 73.8 million euros the payments supposedly agreed with the former president, which he would receive upon retirement. Ghosn is accused of not having declared part of his compensation at the head of Nissan Motor in two periods, between March 2011 and the same month of 2015, and between March 2015 and 2018.

The 64-year-old executive is also accused of violating Japanese business regulations by using Nissan to cover a series of personal financial losses. The arrest of its chief executive led Nissan to dismiss Ghosn as president and Saikawa to take the lead.

Regarding the alliance with Renault, Saikawa has been open to working with the new managers of the firm and stated that in the future he wants to "polish the value of the alliance" and "develop it further". In this sense, he showed his desire to discuss and "review if necessary" the Alliance 2022, the current strategic plan in the Renault-Nissan and Mitsubishi alliance.

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