Nissan’s ambitious growth plan accepted
Chief executive of Nissan and Renault, Carlos Ghosn, himself a symbol of promise and sweep of the global car industry, tabled a new 5 year plan Nissan GT 2012 for growth and trust; with stronger focus on emerging markets and technologies like electric cars, instead of financial goals. The plan aims at 55 average revenue growth over 5 years. Mr. Ghosn set target of 8 percent margin in neutral environment and 5 to 6% in tough external conditions.
Some analysts feel that since the plan is strongly focussed on new technologies, company will not be in a position to commit firmly on profits, more than a year ahead. Mr. Ghosn promises to achieve corporate breakthroughs, establish leadership in quality and zero emission cars. Nissan will introduce electric cars in US and Japan in the year 2010 and will enter the global market in 2012.
Mr Ghosn has ambitious plan of doubling sales of Nissan’s Infiniti premium brand by 2012. Nissan is also developing “global entry cars,” and an ultra-low-cost car priced at $2,500 in collaboration with India’s Bajaj.
Some analysts asked Mr Ghosn whether he was overcommitted in his role as head of two companies in world’s most demanding industries. The analysts are just speculating whether Mr. Ghosn will be able to meet his commitments.
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