Nissan previews increase in profit, seeks to lift Japan production image

The second largest Japanese automaker has recently predicted its profit would increase for the third consecutive year on the back of the weaker home currency and strong demand in crucial markets such as the United States.

Thanks to the currency tailwinds, Nissan Motor has announced plans to boost home production to at least one million units next year for the first time since 2013 and chief executive officer Carlos Ghosn has hinted that production output might edge higher in 2017. Last year, Japanese production was down 8.7 percent to 880,887 units. The currency weakness that lifted overseas income from exports, together with rising sales in major markets such as the US lifted the company’s net income by 18 percent during the previous fiscal year, ending March 31, 2015. The yen has lost around 15 percent of its value against the dollar over the past 12 months and while Japanese domestic sales are on a declining trend, building more vehicles at home would yield increased profits when the autos are exported.

For the year ending March 31, 2015, net income jumped to 457.6 billion yen ($3.8 billion) and is forecasted to rise by another 6 percent to 485 billion yen for the current fiscal year, according to a statement from the firm. Nissan managed so far to overshadow its Japanese rival Honda to become the fifth biggest carmaker on the US market and believes new model introductions, such as the Titan pickup and Maxima sedan would allow it to gain even more market share. The company said it predicts global deliveries would inch up 4.4 percent to 5.55 million autos for the current fiscal year.

Via Bloomberg