Wednesday, 8 November 2017

Nissan cuts operating profit forecast after Japan recall

Japan's Nissan has reduced its full-year profit forecast as a safety inspection scandal hit earnings.

The carmaker expects operating profit of 645bn yen ($5.7bn; £4.3bn) for the year to March 2018, down from previous guidance of 685bn yen.

It also saw a sharp drop in operating profit for the three months to September owing to weakness in the US.

It recalled 1.2 million cars in the domestic market last month after flaws in safety checks were discovered.

At a media briefing in Yokohama on Wednesday, Nissan chief executive Hiroto Saikawa gave a long bow of apology and vowed to "regain the trust" in the wake of the scandal.
"I would like to express my apologies to customers, business partners, dealers and all the people who have been supporting Nissan," he said.

Japan's second-largest carmaker suspended local production for about three weeks after it revealed uncertified workers carried out final vehicle inspection checks for decades. On Wednesday, it resumed production at all six of its domestic assembly plants.

BBC     News.

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