Nissan Shares Drop After Lowering Profit Forecast

Nissan Motor Co. stock fell 10.4% percent to 861 yen yesterday in Tokyo trading, the biggest percentage drop since December 2008, when the first ripples of the crisis reached Japan trading. From the close of October 30th, Nissan is actually down 15%.
Nissan going down 1 photo
Photo: original photo created by autoevolution
The reason? Hurt by the massive cost of its recent recalls and slowing demand in emerging markets, Nissan has lowered its forecast for the 2013 financial year ending next March by 15%.

Bloomberg reports that a number of rating agencies and banks like Goldman Sachs, Credit Suisse and Deutsche Bank downgraded Nissan, which meant investors jumped ship and cut their losses.

This weekend, CEO Carlos Ghosn said he is getting rid of the company COO position, which was created in 2005. Further management changes are underway, which will help the company with its quality problems and better focus on cutting costs. They will also focus more on the emerging markets and stand to gain from the modular architecture they developed with Renault.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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