Nissan reports drop in profit, taking stake in Mitsubishi

TOKYO (AP) — Nissan, which is taking a 34 percent stake in scandal-ridden Japanese rival Mitsubishi Motors, suffered a 40 percent plunge in January-March profit as sales dipped and currency perks faded.

Chief Executive Carlos Ghosn announced Thursday that Nissan will spend 237 billion yen ($2.2 billion) to become the top investor in Mitsubishi Motors by purchasing newly issues shares.

Nissan shares dropped 1.4 percent in Tokyo trading as Japanese media reported that a deal with Mitsubishi was imminent.