Nissan forecasts big drop in profits

Nissan posted a net profit of €2.98bn for 2007, selling a record 3.770m vehicles for the year - an increase of 8.2 per cent on 2006. The Japanese manufacturer posted an operating profit margin of 7.3% for the year on net revenues of €67bn.

European sales grew to 636,000 units, up 17.9% on the previous year on the back of a range of new models, including the X-TRAIL, GT-R, Murano and single-cab Navara pick-up.

“In a challenging and volatile environment, Nissan demonstrated that it has reached the maturity to deliver a high level of performance,” said Nissan President and CEO Carlos Ghosn.

2008 forecasts

But Nissan's forecasts for fiscal 2008 suggest a significant downturn, with rising costs, a strong yen and falling demand in traditional markets to blame.

The global sales forecast for fiscal 2008 is 3.9 million units, with main growth coming from emerging markets such as China and Russia.

Nissan will launch nine all-new products during fiscal 2008: including the Infiniti FX, Qashqai+2, and Infiniti G37 Convertible.

Nissan is forecasting net income of €2.19bn for the fiscal year ending March 31, 2009, with net revenues of €66.77bn.

Five-year plan

Nissan has also outline d a new five-year plan called “Nissan GT 2012,” that will focus on “G” for growth and “T” for trust.

The plan's three core commitments are focussed on quality leadership, zero-emission vehicle leadership and five percent revenue growth on average over five years.

The company will launch 60 all-new models in the next five years and more than 15 new technologies every year from 2009.

Business expansion will include a European launch for Infiniti, and expansion of light commercial vehicles and global budget cars, while Nissan will enter new markets such as India, Middle East, Brazil, Russia and China.

“Nissan GT 2012 reflects the determination of our company to play a major role in the development of a sustainable mobile society,” commented Ghosn. “There’s a balance to be sought between the potential growth in world markets and the demand for a cleaner planet.

"We are convinced that the mass availability of affordable zero-emission vehicles is the most significant breakthrough our industry could deliver, and, together with Renault, Nissan intends to be the breakthrough leader.”

Renault and Nissan are planning to make a $2,500 car in India by 2011 with local partner Bajaj group, rivalling Tata Motor's 'cheapest car in the world' Nano.

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