Sluggish sales, sluggish profits

Despite its ongoing restructuring efforts, Nissan Motor Co. Ltd. expects operating profits for the fiscal year to fall below earlier projections. Nissan's fiscal year ended March 31. The Japanese automaker, which had projected consolidated operating profits of $900 million on sales of $62 billion, says it fell short due to sluggish domestic sales. Nissan, which recently appointed Chief Operating Officer Carlos Ghosn as president, plans to reduce the number of its models in Japan. It is likely to cut the number of domestic nameplates by 25% from the current 40. Nissan also reportedly has defined its truckmaking unit, Nissan Diesel Motor Co. Ltd., as a "noncore" business. Although officials did not say so, insiders believe the "noncore" label indicates that the automaker intends to sell the unprofitable unit. Renault SA, which has a controlling interest in Nissan Motor and has led the automaker's restructuring plan, also owns a 22.5% stake in Nissan Diesel.