Nissan Profit to Drop Below Renault's for First Time in Decade
- Blames higher costs, adverse environment, ‘corporate issues’
- Management shuffle, Japan-France talks overshadow cuts
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Nissan Motor Co. is on track to miss its full-year profit goal, earning less than alliance partner Renault SA for the first time in a decade and underscoring the challenges they face in charting a post-Carlos Ghosn future.
The Japanese carmaker, which has been struggling to reignite earnings and sales while dealing with the fallout from the arrest of its ex-chairman, slashed its preliminary operating profit for the second time to 318 billion yen ($2.8 billion) for the year ended March, from 450 billion yen. The Yokohama-based company cited higher costs related to U.S. warranties, an “adverse operating environment” and the “impact of recent corporate issues on sales.”