Nissan is reporting an increase in net income of 7.5 times for the annual period ending March 2011 compared with the same period last year. On the flips side,they are also estimating losses from the earthquake to be at 39.6 billion Yen (about 490 million USD).
Overall sales rose for the first time since 2007, and the number of units sold also broke the 4 million level for the first time, with a record 4.185 million sold. Sales in China have been particularly strong – growing by 35.5%, although Nissan has also seen strong growth in the EU and US.
To counter the issues faced as a result of the earthquake, Ghosn is stating that Nissan will be prioritizing important markets and regions to try to mitigate the negative effects as much as possible. He has particularly singled out the US and China as priorities to be protected at all costs.
These are impressive figures from Nissan. And with Toyota appearing to be in greater difficulty as a result of the earthquake and image issues resulting from a series of recalls, it is worth keeping an eye on Nissan and their future growth. In addition, Nissan is clearly attempting to leapfrog Toyota by bypassing hybrid technology (in which Toyota has a lead and stronger brand image) and moving directly to the all-electric model. If this plays out successfully over the next five to ten years, Nissan may well find themselves at the top of the heap in the not too distant future.
Source: Nikkei (Japanese-language)leave a response, trackback from your own site