Nissan Motor Co. Ltd. CEO Carlos Ghosn reportedly has put a stop on shareholders’ bonus payments as a penalty for Nissan’s depressed results in fiscal 2006.
Nissan saw its first profit decrease in seven years when it reported fiscal year results in April, marking the first time since Ghosn took over Nissan in 1999 that the auto maker has seen an earnings decline.
Ghosn, speaking at Nissan’s annual shareholders meeting in Yokohama, Japan, today, tells a record turnout of 2,100 company shareholders that Nissan and French auto maker Renault SA do not plan to expand their alliance to include a third auto maker anytime soon.
“Today, our shareholders, both from Nissan and Renault, consider that extending the alliance is more a risk than an opportunity,” Ghosn tells those gathered, The Associated Press reports.
Ghosn also denies any knowledge of the French government moving to sell its shares in Renault, which are seeing historic levels in June as speculation increases that such a move might occur.
Additionally, he dismisses any notion Nissan is interested in Ford Motor Co.’s Jaguar and Land Rover brands, which are in play, saying their high price tags outweigh any possible returns.
Meanwhile, Ghosn says Nissan will announce annual dividend targets when it releases its new mid-term business plan in April 2008.
Nissan says it will pay a dividend of ¥40 ($0.32) for the fiscal year ending March 31.
