Nissan Motor Co. withdrew its dividend outlook and said it’s now undecided on a payout, an unexpected blow to top shareholder Renault SA. The Japanese automaker, which slashed its profit and sales outlook for the current fiscal year to March, had already cut its dividend earlier this year. On Nov. 12, it withdrew its outlook for a 40 yen-per-share payout for the year in a filing to the Tokyo Stock Exchange. Renault shares fell 1% in Paris trading.
The French automaker stands to lose the most because it owns 43% of Nissan. The Yokohama-based manufacturer is conserving cash as it embarks on 12,500 job cuts globally, and cost reductions aren’t happening soon enough to blunt the impact of weaker demand, higher raw materials costs and unfavorable currency trends. Makoto Uchida, who takes over as chief executive officer next month, inherits the monumental task of restoring Nissan’s brand image and rolling out new cars that appeal to retail customers.
