Nissan profits in freefall while Renault insists on merger

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Operating profit plunged 45 percent to 318 billion yen ($ 2.9 billion) during the year-end in March, said the Japanese automaker in a statement. Revenues fell 3 percent to about 11.6 trillion yen ($ 105 billion), while vehicle sales declined 4.4 percent to 5.5 million yen.

Nissan President Hiroto Saikawa said during the presentation of his results that "the difficulties will continue for the foreseeable future".

Nissan (NSANF) The operating profit forecast for the fiscal year up to March 2020 would fall to $ 230 billion ($ 2.1 billion), which is well below analysts' expectations. Actions in Nissan (NSANF) closed 3% in Tokyo.
The disappointing results show that Nissan is struggling to get out of the arrest of its former president Ghosn, his last president, late last year. The alliance created by Ghosn between Renault (RNLSY)Nissan and Mitsubishi Motors have been shocked by its charge of alleged financial misconduct.

Renault president Jean-Dominique Senard "has an idea in mind: integration or merger," Saikawa told reporters.

"What we have said to Mr. Senard is that it is not the right time to discuss this matter," added Saikawa, noting that he and several other board members have been involved in this case. Nissan's administration consistently opposed the merger.

Nissan sells more cars and generates more revenue than Renault, but the French company holds a much larger stake in its Japanese partner than the other way around.

Renault refused to comment on the information that it wants to merge the two car manufacturers under a new holding company.

Ghosn is now under house arrest in Tokyo, where he faces charges of financial misconduct and allegations that he would have underestimated his income for years and abused his position by transferring losses related to personal investments in Nissan.

Ghosn denies the charges against him, claiming that fears of a merger had provoked a revolt against Nissan and led to his ouster.
Carlos Ghosn says that he is the victim of a conspiracy on the part of a stabbed man. Nissan Execs

Nissan's poor performance sparked questions on Tuesday as to whether Saikawa would soon begin.

A journalist asked him if he should resign so Nissan could make a fresh start, said Saikawa. The board of directors of the company and the shareholders would have to take this decision into account.

"In due course, we would like to hand over to a successor, and for the moment, I can not say more," he said.

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