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At a time when car makers all over the world are facing a ruthless battering due to an out-of control-down-in-the-dumps U.S. market and spiraling raw material costs, Nissan has declared its plan of action to come out of the red. Speaking at a conference in Tokyo, Nissan’s President and CEO Carlos Ghosn has revealed Nissan’s intention to shift focus from developed countries to developing countries such as Brazil and China.

The reasons for these are easily explained by the statistics Ghosn offered. Developed countries, such as the U.S,. have an already saturated auto-market with as many as 800 cars per 1,000 citizens. Compared to that, developing countries sometimes have an average of below 50 cars per 1000 citizens. It’s plain to see, according to Nissan, and also simple mathematics, how the possibility of growth pans out. Ghosn claims that they were focusing only on 79% of the global auto market by the traditional approach of targeting only the developed nations. Their new scheme will give them 94% coverage. Although Nissan has predicted a bleak year ahead with sales projections falling 4.38% and a steep slowing of expected profits by nearly 30.45%.

Their new plans include a scheme to improve their revenue growth by 5%, by the year 2012.In keeping with this plan, they aim to release 60 all-new models within the next five years along with a minimum of 15 new technologies every year, starting from 2009. This ambitious plan has been dubbed the Nissan GT 2012, with “G” and “T” signifying growth and trust, respectively.

There are plans afoot to roll out more electric cars due to an expected increase in demand buoyed by increasing environmental concern and spiraling oil costs. The electric car is set to launch in Japan in 2010 and globally by 2012.

In a bid to lower costs, Nissan has decided to double the production volume per auto part by reducing product diversity and simplifying components. This they plan to successfully achieve within the next five years. An option that a lot of the companies are looking at is producing vehicles in developing countries, to bring down production costs. Nissan is an addition to this bandwagon.

Nissan’s sales figures, for the year ending March 31st 2008, were also disclosed at this conference. There was a 1.8% increase in operating profits and sales were up 3.4% in 12 months. All this was however, negated by the disastrous impact that the U.S. market seems to be having on companies across the board. Nissan however has certainly got all its strategies in place to put an end to this trend.

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Tags: Nissan //