Nissan Motor reportedly will delay a target to sell 4.2m vehicles worldwide this fiscal year.
A source told Reuters that Nissan Motor had revised down its targets as demand for its cars falls short of expectations.
The source reportedly added that Renault and Nissan Motor CEO Carlos Ghosn would on 26 April confirm an updated plan along with Nissan’s 2006/07 fiscal year results.
Reuters noted that Nissan sales have dropped below target in the United States and Japan, its two largest markets, prompting a downward revision to its profit estimates for the fiscal year to 31 March. Nissan said in February it was certain to miss its 2006-07 global sales target of 3.73m vehicles, the report said, adding that Ghosn said then that Nissan would draw up additional action plans to make sure it met three commitments under its medium-term business plan.
The “Nissan Value-Up” plan calls for an operating profit margin at the “top end” of the industry, and a 20% return on invested capital in 2007/08. A vehicle sales target of 4.2m units was slated for completion a year later, Reuters said.