Watchdog likely to recommend $22 million fine against Nissan

Watchdog likely to recommend $22 million fine against Nissan
Former Nissan Motor Chairman Carlos Ghosn arrives for a pretrial hearing at the Tokyo District Court. (AFP/File)
Updated 08 December 2019

Watchdog likely to recommend $22 million fine against Nissan

Watchdog likely to recommend $22 million fine against Nissan
  • Automobile manufacturer accused of false reporting on its financial statement

TOKYO: Japan’s markets watchdog will likely soon recommend that the financial regulator fine Nissan Motor Co. about 2.4 billion yen ($22 million) over false reporting on its financial statement, public broadcaster NHK reported on Sunday.

Nissan’s former Chairman Carlos Ghosn was arrested in Tokyo in November last year over allegations of financial misconduct, including understating his salary by around 9.1 billion yen over a period of nearly a decade and temporarily transferring personal financial losses to the books of Nissan, Japan’s No. 2 automaker.

Reuters reported in June that Nissan would be fined up to 4 billion yen and it may receive a reduced fine of around 2.4 billion yen if the automaker filed documentation to the Securities and Exchange Surveillance Commission (SESC) before the formal investigation begins, citing a source.

The fine would cover a four-year period through March 2018, the source previously told Reuters.

Separately, Nissan earlier announced making its US factory and office employees take two days off without pay amid slumping sales. The company’s US sales this year are down 7.8 percent through November. Nissan said nearly all of its 21,000 US workers must take Jan. 2 and 3 off without compensation. A company statement said the furloughs will “optimize business performance and competitiveness.”

All of Nissan’s US factories and offices will be affected by the furloughs including the North American headquarters in Franklin, Tennessee, near Nashville. Nissan and Infiniti dealerships will remain open.

Most Nissan and Infiniti luxury brand models in the US are in a sales slump, including the company’s top seller, the Nissan Rogue compact SUV, with sales down 12.6 percent so far this year.