Japanese automaker Nissan posts loss amid pandemic, scandal

TOKYO (AP) — Nissan posted a loss of 44.4 billion yen ($421 million) in the last quarter as the pandemic slammed profitability and the Japanese automaker fought to restore a brand image tarnished by a scandal centered on its former star executive Carlos Ghosn.

Nissan Motor Co. had a profit of 59 billion yen in July-September of 2019.

Yokohama-based Nissan reported Thursday its quarterly sales dipped to 1.9 trillion yen ($18 billion) from 2.6 trillion yen a year earlier.

Nissan officials said its global sales are expected to recover to pre-pandemic levels by December, if improvements continue at the current pace.

Chief Executive Makoto Uchida promised the company will work hard to recover and become “a trusted company,” delivering products that will be praised as “Nissan-like.”

A section of Nissan's earnings report addressed the Ghosn case. Former Nissan executive Greg Kelly is standing trial in Tokyo District Court on allegations of violating the Financial Instruments and Exchange Act in not fully disclosing Ghosn’s compensation.

Ghosn, who says he is innocent, jumped bail and fled to Lebanon, which has no extradition treaty with Japan. Kelly also says he is innocent.

Nissan, as a company, is not fighting the criminal charges and has paid an administrative penalty of 1.4 billion yen ($13 million).

The company reiterated Thursday that it took what happened seriously and has taken steps to improve governance.

In its report, Nissan accused Ghosn of misusing company assets for personal use, such as spending $27 million of company funds to buy homes in Beirut and Rio de Janeiro, improper use of the company jet and donating $2 million to universities in Lebanon.

Nissan is suing Ghosn, demanding 10 billion yen ($95 million) in damages.

The company is still...