Following the lead of fellow Japanese auto makersMotor Co. Ltd. and Motor Corp., Motor Co. Ltd. says it foresees a gloomy fiscal 2008, predicting its largest net income decline in nine years.
Assuming an exchange rate of ¥100:$1 and ¥155:E1,forecasts a net income of ¥340 billion ($3.40 billion), down 30% from its fiscal-2007 net income of ¥482.3 billion ($4.22 billion) released today in Tokyo.
“Take a look at the headwinds we’re facing in 2008,” Carlos Ghosn tells Bloomberg Television. “We’re not being pessimistic, we’re being prudent.”
Nissan also predicts revenue will decline 4% to ¥10.4 trillion ($103.5 billion) from ¥10.8 trillion ($94.6 billion) in FY07.
Global sales are seen gaining slightly, from a record 3.77 million worldwide in FY07 to 3.9 million in FY08, with General Overseas Markets and Russia making up for a decline in the mature markets of North America and Japan.
In the FY07, ended March 31, Nissan sales rose 8.2% globally to 3.77 million units, with General Overseas Markets making the biggest leap, up 22.1% to 1.06 million units. It was the first time the region, which includes the Middle East, Asia and Latin America, has surpassed 1 million units in a fiscal year.
U.S. sales rose 3% to 1.06 million units in the prior fiscal year, while sales in Europe were up 17.9% to 636,000. Sales in Nissan’s home market of Japan fell 2.5% to 721,000. Ghosn also introduces Nissan’s new business plan, Nissan GT 2012.
Following the successful 3-year Value Up plan, GT 2012 will extend five years, from April 1, 2008, to March 31, 2013, and will focus on “growth” and “trust.”
One of the three goals of the plan is “zero-emission vehicle leadership,” with Nissan reiterating its stance to introduce an all-electric vehicle in the U.S. and Japan by 2010 followed by a mass-market global introduction of such a model by 2012.
“Nissan GT 2012 reflects the determination of our company to play a major role in the development of a sustainable mobile society,” Ghosn says in a statement.
“We are convinced that the mass availability of affordable zero-emission vehicles is the most significant breakthrough our industry could deliver, and, together with (alliance partner)(SA), Nissan intends to be the breakthrough leader.”
Other goals of the new plan include achieving leadership in quality and a 5% average growth in revenue from FY08 to FY12, which will be made possible by 60 new model launches in the period, as well as the introduction of more than 15 new technologies every year from 2009.