Nissan Motor chief executive Carlos Ghosn has suggested the company hopes to meet its targeted 8% profit margin sooner than the final year of its latest six-year business plan to the end of March 2017.
“We never said 8% in (fiscal) 2016,” Nissan’s CEO and President Carlos Ghosn said at a media meeting, referring to the year in which the company aims to hit its profit margin target, Dow Jones reported.
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The comments after Nissan released its six-year growth plan, under which the company aims to lift its global market share to 8%, from 5.8% in the last fiscal year, and to raise its profit margin to 8%, from 6.1% in the last fiscal year.
Ghosn also said that Nissan will not try to meet the 8% market share goal at any cost, saying that improving quality is more important than chasing sales volume, with market share simply a target that the company hopes to reach.
The stubbornly strong yen could hamper the company’s efforts to target higher profitability, but the company is looking to boost its revenue in yen and reduce costs in the Japanese currency to lessen the impact of the yen’s strength, he said.
Nissan’s costs in yen topped revenue in yen by JPY1.5 trillion in the last fiscal year ended March, and the gap is still growing in the current fiscal year.
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By GlobalDataBut “this gap is going down (during the new plan). We are reducing it to less than JPY1 trillion,” Ghosn said.
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