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Nissan officials answer to angry shareholders on red ink, Ghosn scandal

Smoke engulfs the Nissan logo as workers burn tires during a protest in Barcelona, Spain, where the automaker is closing its plant, costing 3,000 direct jobs. (AP/Emilio Morenatti)     TOKYO — Nissan Chief Executive Makoto Uchida told shareholders Monday he is giving up half his pay after the Japanese automaker sank into the red amid plunging sales and plant closures in Spain and Indonesia. Uchida apologized for the poor results and promised a recovery by 2023, driven by cost cuts and new models showcasing electric-car and automated-driving technology. “We will tackle these challenges without compromise,” he said at a live-streamed meeting. “I promise to bring Nissan back on a growth track.” Executives for the company also blasted suggestions in media reports of a conspiracy within the company to oust Carlos Ghosn. The former chairman's 2018 arrest in Japan on financial misconduct charges has led to much speculation that the move was orchestrated by Nissan executives who opposed closer ties with partner Renault. “I know that in books and the media there has been talk about a conspiracy, but there are no facts whatsoever to support this,” Motoo Nagai, chairman of NissanÂ’s auditing committee, told shareholders at the companyÂ’s annual general meeting. Responding to demands from a shareholder to address the speculation, Nagai argued that the investigation into Ghosn was conducted both internally and by outside law firms. All the worldÂ’s automakers have been hurt by nose-diving sales caused by the coronavirus pandemic. But the problems are especially serious for Nissan, which already was fighting to salvage its reputation after the financial misconduct scandal of former star executive Ghosn. Nissan, based in Yokohama, Japan, sank into its first annual loss in 11 years, reporting a 671.2 billion yen ($6.3 billion) loss for the fiscal year that ended in March. It has not given a projection for this fiscal year, citing uncertainties over the virus outbreak. One angry shareholder got up and said executives should give up more of their pay since investors were getting zero dividends. Another said Nissan needed to do more to strengthen its governance, arguing things have been getting worse, not better, since the departure of Ghosn.

Renault's planned luxury sub-brand gets reconsidered

Renault believes there's enough Alpine love to restart that brand with its own model almost immediately. The launch of the Initiale Paris luxury brand it's been mulling, on the other hand, will be more restrained: a report in Autocar says that instead of launching with a first model based on the Mercedes E-Class architecture, Renault is going to introduce an Initiale Paris trim line on the new Clio and Espace. More accurately, that should be 're-introduce and aggressively market,' since Renault has used an Initiale Paris trim over the years since it introduced the concept car (pictured) in 1995, even as recently as the current-generation Laguna Coupe.
Other models will be added after the Clio and Espace, and when Renault can assess what kind of future the trim has, it will decide on the launch of a subsidiary brand. Company CEO Carlos Tavares said we shouldn't hang around waiting for a decision, though, declaring that establishing such a brand - if it even comes to that - "will be a job for at least my successor to worry about, not me."

Nissan X-Trail Takata inflator rupture causes fire in Japan [UPDATE]

UPDATE: Autoblog has received Nissan's official statement about the Takata inflator rupture in Japan. It confirms the details of the case, but contradicts one part of the original story. Nissan says that the vehicle's owner was notified about the recall, but the X-Trail wasn't repaired. We've updated the story to reflect this, and the full statement is embedded below. Nissan is the latest automaker to be directly affected by faulty Takata airbags in its vehicles. In this case, a 2001 X-Trail crossover in Japan caught fire after an accident when its passenger side inflator ruptured, shot out hot shrapnel, and caused the dashboard to ignite. The driver suffered light burns to the cheek during the crash, according to Reuters. Nissan has covered this model of X-Trail under its Takata recall in Japan since April 2013, but a company spokesperson told Reuters that the driver didn't receive the notice. The inflator in the crossover was made at Takata's factory in Moses Lake, WA. This was Nissan's first case in Japan of one of these parts rupturing. While a root cause isn't known, the problem with these components is believed to come from moisture getting into the inflator and causing the propellant to ignite too quickly. The Takata airbag recall has affected millions of vehicles worldwide and has been linked to eight deaths worldwide. In May, Nissan added 1.56 million of its models globally to replace the parts. Subsequently, the company added thousands more for the passenger side in the US and Canada. According to Reuters, the company has called in 813,000 vehicles in Japan, and 85 percent of them have been repaired there. The repair rate in the US has been far lower, though. Takata is producing around a million repair kits a month, but there are 34 million affected vehicles here from 11 automakers. According to a Congressional hearing in early June, it could be years before the whole problem is properly sorted out. Related Video: Nissan Statement Nissan is aware of a June 25 2015 incident in Japan involving improper deployment of a passenger side air bag in a 2001 Nissan X-Trail. The driver of the vehicle reported minor injuries. This vehicle was already subject to a Takata recall and owner notification was made. However, for unknown reasons, the vehicle has not been remedied. Relevant authorities have been notified. This incident is subject to an ongoing investigation and no further information will be available at this time.