TOKYO: Nissan yesterday launched a sweeping management overhaul to “rejuvenate” its top ranks while slashing its full-year profit forecast, as the Japanese automaker cited a sluggish European market and vehicle recall costs.
The firm now expects to earn 355bn yen ($3.62bn) in the fiscal year to March, down from an earlier 420bn yen forecast.
Despite the slimmed-down forecast, Japan’s number-two automaker said its half-year net profit rose 6.5 percent from a year ago as sales jumped 14.7 percent.
“Nissan’s results reflect improved demand for our new products in Japan and the Americas,” chief executive Carlos Ghosn said.
“This was offset by difficult conditions in Europe, volatile demand in several emerging markets and higher expenses related to recalls.”
Japanese automakers, once lauded for their quality and safety, have been stung in recent years as they recalled millions of defective vehicles.
The management shakeup yesterday at Nissan, maker of the Altima sedan and luxury Infiniti brand, included replacing its number-two position with a trio of executives.
Ghosn, 59, widely credited with rescuing a near-bankrupt Nissan when he took over more than a decade ago, said the firm needed fresh blood in its top ranks. “Everyone understands the company needs to rejuvenate itself,” he said from Nissan’s headquarters near Tokyo.
The announcement came about two months after Ghosn announced a broad management restructuring at Renault — he is also chief executive of the French carmaker, which owns more than 40 percent of Nissan.
Ghosn brushed off questions about his own retirement, saying it was up to shareholders and Nissan’s board. “I can assure you there will be a time when I’ll be replaced, but it’s more a decision which will be up to the owners of the company,” he said.
Earlier yesterday, Nissan said it sold 2.43 million cars over the half-year period, down 1.5 percent on-year, as sales in China, the world’s biggest vehicle market, fell 8.3 percent. Europe slid 6.1 percent but North America jumped 13.8 percent, the company said.
China has been a key question mark for Japanese automakers, particularly Nissan which counts on the country for about one-quarter of its sales, far higher than its domestic rivals.
AFP
