First drop in car sales since 2009 adds to Nissan woes

Both Nissan and its former chairman Carlos Ghosn have been indicted in Tokyo for under-reporting Ghosn's income. Nissan is also under probe by the United States Securities and Exchange Commission on whether the carmaker accurately disclosed executive
Both Nissan and its former chairman Carlos Ghosn have been indicted in Tokyo for under-reporting Ghosn's income. Nissan is also under probe by the United States Securities and Exchange Commission on whether the carmaker accurately disclosed executive pay.PHOTO: BLOOMBERG
Both Nissan and its former chairman Carlos Ghosn have been indicted in Tokyo for under-reporting Ghosn's income. Nissan is also under probe by the United States Securities and Exchange Commission on whether the carmaker accurately disclosed executive
Both Nissan and its former chairman Carlos Ghosn have been indicted in Tokyo for under-reporting Ghosn's income. Nissan is also under probe by the United States Securities and Exchange Commission on whether the carmaker accurately disclosed executive pay.PHOTO: BLOOMBERG

TOKYO • Nissan Motor reported its first slide in auto sales in almost a decade, adding to the challenges the company faces following the arrest of former chairman Carlos Ghosn in Japan for alleged financial misconduct.

Global deliveries fell 2.8 per cent last year to 5.7 million vehicles, the Japan-based carmaker said in a statement yesterday.

The last time Nissan had a slump was in 2009. By comparison, rival Toyota Motor showed a 2 per cent increase and Volkswagen reported a 0.9 per cent gain for last year.

While carmakers worldwide have been struggling with China, the largest market, contracting for the first time in more than two decades, Nissan's woes were compounded by the fallout since Ghosn's arrest on Nov 19 and prolonged detention.

Both the company and the executive have been indicted in Tokyo for under-reporting his income, threatening to unravel the world's biggest auto alliance - of Nissan, Renault and Mitsubishi Motors - he helped engineer.

Nissan, which is due to announce its earnings for the quarter through last month on Feb 12, is also under probe by financial regulator, the United States Securities and Exchange Commission, on whether the carmaker accurately disclosed executive pay.

BLOOMBERG

Global deliveries fell 2.8 per cent last year to 5.7 million vehicles, the Japan-based carmaker said in a statement yesterday.

A version of this article appeared in the print edition of The Straits Times on January 31, 2019, with the headline 'First drop in car sales since 2009 adds to Nissan woes'. Print Edition | Subscribe