The situation is desperate here in the U.S., which is Nissan’s largest single market. Vinay Shahani, who heads up U.S. sales for Nissan, told dealer representatives that early Q2 sales figures were nothing short of an “ absolute catastrophe .”

The French carmaker said it would take the charge after changing the way it accounts for its shares in the Japanese carmaker.

During the meeting front by new chief executive Ivan Espinosa, Nissan reported a $4.5 billion net loss in the last financial year. It failed to provide an earnings forecast for the current year, but estimated a first-quarter loss of 200 billion yen or $1.38 billion at current exchange rates. In addition, Nissan has suspended its dividends.