Nissan Motor Co. on Wednesday lowered its full-year profit projection for the business year through next March, owing to costs associated with a decades-long scandal involving the automaker using uncertified staff to carry out final safety checks on its cars.
The Yokohama-based automaker lowered its group operating profit from an earlier estimate of 685 billion yen (6.01 billion U.S. dollars) for the year to March 2018, to 645 billion yen (5.66 billion U.S. dollars), with its net profit outlook set at 535 billion yen.
Nissan's profit outlook, based on an expected uptick of sales netting 11.8 trillion yen, the equivalent of a 0.7 percent increase compared to a year earlier, is down more than 19 percent from the last business year.
For the fiscal first-half through September, meanwhile, the embattled automaker said its operating profit tanked 17 percent from a year earlier to 281.83 billion yen.
The hefty drop was owing in part to the automaker's recall of some 1.2 million vehicles after the inspection scandal came to light.
Losses were also incurred due to legal expenses connected to Takata Corp. and its faulty air bag inflators, which have led to some fatalities and affected a number of prominent global automakers including Nissan.
Nissan Chief Executive Officer Hiroto Saikawa reiterated his apology for the inspection scandal, telling a press conference Wednesday that "I deeply apologize for undermining public confidence.
"We will make all-out efforts to win back trust."
Saikawa said that production and shipment has restarted at all six plats here after a suspension for about a fortnight, but the results of an external probe into its uncertified inspections that were to be reported to the transport ministry would be delayed due to more recalls and operations restarting.
On Tuesday, it was revealed that Japan's second-biggest carmaker by volume may have given inaccurate information to the transport ministry in an inspection in September which first brought to light the automaker's use of uncertified staff to carry out final safety checks on cars.
Keiichi Ishii, minister of land, infrastructure, transport and tourism, told a press conference here that the automaker's dealings with the ministry's inspection in September had been "inappropriate" which could add to Nissan's woes surrounding the scandal.
Ishii said he "will respond harshly if specific facts are confirmed," with reference to whether a criminal complaint would be filed against Nissan following its slew of misconducts.
He also blasted the firm for routinely using unqualified staff for final vehicle inspections which has undermined ministry-standard procedures for certified technicians.
Nissan halted shipments and production at all six of its assembly plants here in October, after it was revealed that uncertified inspections were still occurring even after the scandal first came to light in September.
The transport ministry has been conducting inspections at Nissan's plants as it steps up measures to ensure the beleaguered automaker's practice of using uncertified staff to carry out safety checks is curbed and preventative measures put in place.
Such measures include Nissan carrying out final inspections on vehicles in areas that are not connected to other inspection lines, and external probes being carried out on a weekly basis.
The final inspections conducted on vehicles by unqualified personnel at Nissan led to the automaker issuing a domestic recall of some 1.2 million cars sold in Japan over the past three years and a suspension of production of domestic automobiles.
According to an internal investigation at Nissan, it was revealed that improper final inspections on vehicles had become an inherent practice at the Yokohama-based automaker and dates back as far as 20 years.
The new independent inspection protocol and probes will lead to a possibly lengthy drop in vehicle production, informed sources have said.
Nissan's ongoing scandal, along with those related to Kobe Steel and another Japanese automaker, Subaru Corp., have severely diminished domestic and international confidence in Japan's once stellar manufacturing industry.
Subaru Corp. on Monday slashed its full-year group earnings forecast for the current business year, owing to costs associated with its lengthy practice of uncertified vehicle inspections.
Subaru is gearing up to issue a recall this month on around 255,000 vehicles after it was revealed in late October that final vehicle inspections had also been carried out by uncertified staff.
The Yokohama-based automaker lowered its group operating profit from an earlier estimate of 685 billion yen (6.01 billion U.S. dollars) for the year to March 2018, to 645 billion yen (5.66 billion U.S. dollars), with its net profit outlook set at 535 billion yen.
Nissan's profit outlook, based on an expected uptick of sales netting 11.8 trillion yen, the equivalent of a 0.7 percent increase compared to a year earlier, is down more than 19 percent from the last business year.
For the fiscal first-half through September, meanwhile, the embattled automaker said its operating profit tanked 17 percent from a year earlier to 281.83 billion yen.
The hefty drop was owing in part to the automaker's recall of some 1.2 million vehicles after the inspection scandal came to light.
Losses were also incurred due to legal expenses connected to Takata Corp. and its faulty air bag inflators, which have led to some fatalities and affected a number of prominent global automakers including Nissan.
Nissan Chief Executive Officer Hiroto Saikawa reiterated his apology for the inspection scandal, telling a press conference Wednesday that "I deeply apologize for undermining public confidence.
"We will make all-out efforts to win back trust."
Saikawa said that production and shipment has restarted at all six plats here after a suspension for about a fortnight, but the results of an external probe into its uncertified inspections that were to be reported to the transport ministry would be delayed due to more recalls and operations restarting.
On Tuesday, it was revealed that Japan's second-biggest carmaker by volume may have given inaccurate information to the transport ministry in an inspection in September which first brought to light the automaker's use of uncertified staff to carry out final safety checks on cars.
Keiichi Ishii, minister of land, infrastructure, transport and tourism, told a press conference here that the automaker's dealings with the ministry's inspection in September had been "inappropriate" which could add to Nissan's woes surrounding the scandal.
Ishii said he "will respond harshly if specific facts are confirmed," with reference to whether a criminal complaint would be filed against Nissan following its slew of misconducts.
He also blasted the firm for routinely using unqualified staff for final vehicle inspections which has undermined ministry-standard procedures for certified technicians.
Nissan halted shipments and production at all six of its assembly plants here in October, after it was revealed that uncertified inspections were still occurring even after the scandal first came to light in September.
The transport ministry has been conducting inspections at Nissan's plants as it steps up measures to ensure the beleaguered automaker's practice of using uncertified staff to carry out safety checks is curbed and preventative measures put in place.
Such measures include Nissan carrying out final inspections on vehicles in areas that are not connected to other inspection lines, and external probes being carried out on a weekly basis.
The final inspections conducted on vehicles by unqualified personnel at Nissan led to the automaker issuing a domestic recall of some 1.2 million cars sold in Japan over the past three years and a suspension of production of domestic automobiles.
According to an internal investigation at Nissan, it was revealed that improper final inspections on vehicles had become an inherent practice at the Yokohama-based automaker and dates back as far as 20 years.
The new independent inspection protocol and probes will lead to a possibly lengthy drop in vehicle production, informed sources have said.
Nissan's ongoing scandal, along with those related to Kobe Steel and another Japanese automaker, Subaru Corp., have severely diminished domestic and international confidence in Japan's once stellar manufacturing industry.
Subaru Corp. on Monday slashed its full-year group earnings forecast for the current business year, owing to costs associated with its lengthy practice of uncertified vehicle inspections.
Subaru is gearing up to issue a recall this month on around 255,000 vehicles after it was revealed in late October that final vehicle inspections had also been carried out by uncertified staff.
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