Nissan cuts outlook and books Ghosn charges

Renault names new chairman, CEO to replace Ghosn

FBN’s Cheryl Casone on Renault naming a new chairman and CEO to replace Carlos Ghosn.

Nissan Motor has cut its forecast for both profit and vehicle sales.

Continue Reading Below

In addition, the automaker booked $84 million in charges related to the costs of deferred compensation to former Chairman Carlos Ghosn.

The company is now looking at operating profit of  $4 billion for the year, down from its prior projection, according to the Wall Street Journal.

Nissan’s operating margin is expected to fall to 3.9 percent from the prior projection of 4.5 percent.

Impacting profit is the lowered outlook for sales volume. Nissan says it expects to sell 5.6 million units, compared with its prior projection of 5.9 million units, on falling sales in the U.S. and Europe.

The amount of salary expense for Ghosn reflects what the company sees as compensation that was promised, but not yet paid.

Advertisement

Prosecutors have charged the former chairman with failing to report this amount in eight years of Nissan financial reports.

Ghosn was arrested on Nov. 19.

Source: Read Full Article