Nissan CEO Carlos Ghosn said that the Infiniti brand will make a significant contribution to the group’s profit, especially if the yen will continue to drop.
Over the past two years, due to the strong yen, Infiniti’s profit contribution to the Japanese automaker has been erased. Infiniti accounted for only 1% of Nissan’s profit.
“If the new trend on the yen hopefully will continue to bring back the yen to the normal historical level of 110 yen to the dollar, Infiniti will bring back a very significant contribution to the operating profit of Nissan,” Ghosn said in Tochigi prefecture, north of Tokyo.
Nissan reported the slowest annual growth profit compared with its Japanese peers, mainly due to the anti-Japan sentiment in the world’s largest auto market, China. Nissan predicts that net income will increase 23% to 420 billion yen ($4.1 billion) in the financial year ending March 2014, which would be the highest level in the past six years.
Infiniti plans to double its lineup in the following years, according to President Johan de Nysschen, and the company’s operating margin will improve due to the weakening yen, also rising Nissan’s level.