NISSAN MOTOR CO LTD 
TOKYO (Reuters) - Mitsubishi Motors Corp (>> MITSUBISHI MOTORS CORPORATION) on Wednesday forecast an annual net loss of $1.4 billion (954.05 million pound), as hefty compensation costs and falling sales in the wake of a mileage-cheating scandal drives the automaker into the red for the first time in eight years.
Mitsubishi admitted in April to overstating the mileage on four of its minivehicles - problems it blamed on competitive pressures and poor oversight. The scandal has led to plans for Nissan Motor Co (>> Nissan Motor Co Ltd) to take a one-third controlling stake in the embattled automaker.
It plans to book an extraordinary loss of 150 billion yen ($1.4 billion) to account for costs to compensate customers of affected vehicles as well as payments to Nissan, suppliers and dealers to make up for the loss of sales.
It also expects to take a 55 billion yen hit to revenue, due largely to a near halving in domestic retail sales in the wake of the scandal.
"Domestically, the impact of the sales and production stoppage of minivehicles will lead to a drop of 60,000 cars from last year," senior executive officer Yoshihiro Kuroi told reporters. Mitsubishi sold 102,000 cars in Japan last year.
It is also anticipating weaker vehicle sales in Europe and some other regions as well as a drop in earnings from less favourable currency rates.
Mitsubishi's expected net loss would follow a 39 percent fall in net profit to 72.6 billion yen in the past business year, when it also booked a special loss related to the mileage manipulation.
(Reporting by Naomi Tajitsu; Editing by Edwina Gibbs)
By Naomi Tajitsu
