Nissan cuts profit forecast for second time as Ghosn scandal weighs

Nissan has warned it expects annual profits to be at their weakest since its 2009/10 financial year as costs mount and sales are hit in the wake of the Carlos Ghosn scandal.

The Japanese firm issued the second cut to its guidance in as many months, saying that operating profit in the year to March this year was now likely to be 45% down on 2018/19 at $2.8bn.

Just last month it had predicted weaker profits of $4bn.

The company blamed the cost of extending vehicle warranties in the US, its biggest market, amid a wider slowdown in sales globally.

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It also alluded to the effects of negative publicity since Mr Ghosn was first arrested on financial misconduct charges last November.

Its former chairman, who denies any wrongdoing, is currently back in jail after a short period of freedom awaiting news on a fresh bail application.

Prosecutors in Tokyo announced a series of fresh charges against him on Monday, accusing Mr Ghosn of trying to enrich himself to the tune of $5m.

He claims to be the victim of a corporate smear campaign in Japan over plans to merge Nissan with its biggest shareholder and partner firm Renault, which Mr Ghosn also ran before his arrest.

Asked on Monday whether the firm would consider a full tie-up, Nissan chief executive Hiroto Saikawa told reporters: "Now is not the time to think of such things.

"At the moment we are focused on improving Nissan's earnings performance. Please give us time to do that."