Paying for a string of car recalls and "sluggish" conditions in Europe saw Japanese motor-maker Nissan slash earnings forecasts yesterday.
The manufacturer now expects to make a net profit of ¥355bn (£2.2bn) for the year to next April, down from its earlier forecast of a ¥420bn profit.
Carlos Ghosn, the chief executive, blamed "difficult conditions in Europe, volatile demand in several emerging markets and higher expenses related to recalls".
Nissan was looking to expand both its margins and its share of the global car market to 8 per cent by 2017, but the rapid expansion – with the car maker investing in eight new plants –has resulted in some quality issues leading to a series of recalls.
Like its French partner Renault, Nissan is also shaking up its management structure, moving its chief operating officer to a vice-chairman role and splitting his duties between three other executives.