Nissan slashes China profits

Nissan Motors (7201.TYO, NISA.FRA) slashed its full year profit forecast by 20% Tuesday as the auto maker feels the effects of plummeting sales in China, weaker demand in Europe and a highly valued yen, The Wall Street Journal reported. Japan’s second largest car maker by volume cut its net profit forecast from US$4.99 billion to US$4.02 billion. This will fall well below last year’s net profits of US$4.26 billion. Nissan’s announcement followed a similar warning from Honda Motors (HMC.NYSE, 7267.TYO, HNDA.LON, HDM.FRA) last week, which also cited a 20% drop in Chinese sales to US$4.68 billion. A territorial dispute between Asia’s two largest economies disrupted a low-key international meeting on Tuesday. Japanese Prime Minister Toshihiko Noda claimed Chinese officials made an “inappropriate statement,” as they challenged Tokyo’s claims to several disputed islands in the East China Sea. A Japanese official said harsh words were exchanged between Noda and and Chinese Foreign Minister Yang Jiechi.