Nissan Shares Fall to Eight-Year Low After Top Executive Decides to Quit

After Jun Seki, number three at Nissan, had informed the company of his decision to leave just weeks after taking the job, Nissan’s stock went plunging more than three per cent on Wednesday.
Sputnik

Seki, currently an executive officer and vice chief operating officer, is expected to become president of major electric components maker Nidec, a source close to Nissan told AFP. Seki was in charge of plans to revive crisis-hit Nissan and his responsibilities will be taken over by Ashwani Gupta, chief operating officer and number two at Nissan.

The automaker is struggling to rebuild itself after former chief Carlos Ghosn’s financial scandal, starting its new management under chief executive and president Makoto Uchida on December 1. Ghosn was arrested for alleged financial misconduct in November 2018 and is awaiting his trial which may start around April.

The company said on Wednesday it “has been on a steady path to regain trust, restore the company’s performance and work on its business transformation, and is already seeing progress. Under the new top management, Nissan will continue to focus on these key areas, which remain our highest priority.”

However, it seems that investors were not convinced as Nissan shares plunged 3.1 percent on the Tokyo Stock Exchange to a low last seen in September 2011. Nidec shares, meanwhile, gained 0.3pc.

Nissan, which is in a three-way alliance with Mitsubishi Motors and France’s Renault, last month slashed its full-year forecast for both sales and profits as it struggles with weak demand in Japan, the US and Europe, as well as the fallout from the arrest of Ghosn.

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