Nissan Shareholders Furious At Company's Dismal Results, Carlos Ghosn Scandal

International Business

Nissan shareholders expressed their anger at the management after the stock prices of Japanese automaker plummeted, and the company registered quarterly losses.

Written By Kunal Gaurav | Mumbai | Updated On:
Nissan

Nissan shareholders expressed their anger at the management after the stock prices of Japanese automaker plummeted, and the company registered quarterly losses following the departure of former Chairman Carlos Ghosn. The shareholders left the meeting one by one demanding the company to quickly fix the sales issue and the executives to even give up their pay.

The company has been facing a crisis situation after Ghosn was arrested in November 2018 and was awaiting trial in Japan before he skipped and bail and escaped to Lebanon. Nissan recently filed a lawsuit against the ousted chairman to claim approximately $90 million used by the accused in alleged fraudulent practices.

Nissan reported a loss of 26 billion yen ($237 million) for October-December, a stark contrast with the 70 billion yen profit recorded the previous year. The company’s sales not only slipped by almost 18 per cent to trillion yen ($23 billion), Nissan also slashed its profit forecast for 2020.

Uchida under pressure to revive Nissan

The new Chief Executive Makoto Uchida is already facing the wrath of shareholders, who has been deputed to revive the ailing company. Uchida apologised to the shareholders for the Ghosn scandal and assured them that a turnaround plan will be announced in May.

“We are in a disastrous situation. It was shocking, and I denounce it,” said Uchida.

Read: Nissan Sales Suffer Blow Amid Controversies And Coronavirus Outbreak

Carlos Ghosn served as chairman and CEO of Renault as well as chairman of Mitsubishi Motors. He was also the chairman of the Renault–Nissan–Mitsubishi Alliance, a strategic partnership between the automobile manufacturers. It is said that Ghosn was working on strengthening Nissan’s relationship with Renault when he got arrested in November 2018.

Read: Nissan Files $90m Lawsuit Against Former Chairman Carlos Ghosn

Ghosn was awaiting trial in Japan on financial misconduct charges after Nissan claimed that the former chairman used the company’s money for personal gain. The National Tax Agency of Japan had reached the conclusion that Ghosn made donations to a Lebanese University and paid consultant’s fees to his sister using Nissan money.

Read: Nissan Sues Ghosn, Seeking Damages For Property, Jet Use

Read: Nissan Revises India Strategy, Plans 1 New Model Every Year; Compact SUV On Anvil

(With AP inputs)

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