Nissan said Monday it aims to lift its profitability to 8% over the next six years from 6.1% in the last fiscal year.
Chief Executive Carlos Ghosn has led Nissan through four growth plans since arriving from partner Renault SA in 1999, turning the near-bankrupt company into one of the most profitable in the auto industry.
“We are definitely on the offensive,” Ghosn said at the automaker’s Yokohama headquarters.
“We will accelerate our growth, bringing more innovation and excitement to our products and services as well as cleaner, more affordable cars for everyone around the world,” said Ghosn.
Mamoru Katou, auto analyst at Tokai Tokyo Research, said Nissan sees an opportunity to boost its presence while rivals Toyota and Honda Motor Co. are ailing from disaster-related problems. But he said they will also be recovering soon.
The company’s medium-term business plan, known as Power 88, is also expected to include details on the company’s coming new vehicles, market-share targets and engine technology.
That would exceed last year’s 6.1% for operating income as a portion of net sales, but be well below the double-digit levels the Yokohama-based company reached in the early 2000s.
In an effort to boost sales in emerging markets, Nissan also said it plans to build a new factory in Brazil to have annual production capacity of 200,000 vehicles, while it will lift annual production capacity to 1.2 million vehicles in China in 2012 to meet growing auto demand in the world’s biggest auto market.
The automaker last week said annual net profit this fiscal year will fall 15 percent year-on-year after Japan’s March 11 earthquake hit output, while it also struggles with high raw material costs and a strong yen.