Nissan slashes profit amid Ghosn scandal, lagging sales

TOKYO – Nissan has lowered its profit forecast for the fiscal year through March as the Japanese automaker, contends with slowing sales and the fallout from the loss of its former chairman, Carlos Ghosn.

Nissan Motor Co. said Wednesday it expects to post a 319 billion yen profit ($2.9 billion) for the fiscal year, marking a 22 per cent drop from its earlier 410 billion yen ($3.7 billion) profit forecast earlier.

Nissan said the drop resulted from costs in the U.S. and falling sales due to “corporate issues.”

Ghosn was arrested in November and is facing charges of underreporting his income and breach of trust. He was released on bail in March and is awaiting another court decision on bail after his re-arrest on April 4. He says he is innocent.