Nissan's New Midterm Plan: aims for a global market share of 8% and operating profit of 8% in FY2016

Acquires Russia's AvtoVAZ jointly with Renault, builds a 200,000-unit plant in Brazil



 On June 27, 2011, Nissan announced "Nissan Power 88" a six-year medium-term plan covering FY2011 through FY2016 in which Nissan is determined to achieve a global market share of 8% and a corporate operating profit of 8% in fiscal 2016. If these goals are met, Nissan's global vehicle sales will increase by three million vehicles in six years to over 7.2 million units.

 Nissan disclosed how it will go about increasing sales quantities efficiently by making company-wide efforts in a bid to gain market share, sales quantities and operating profit at the same time.

 According to the plan, the increase in sales will come mainly from emerging countries including BRICs and the five ASEAN member countries. Nissan will acquire AvtoVAZ, an auto leader in Russia, jointly with Renault and will build a plant in Brazil with an annual capacity of 200,000 units. Nissan will increase production capacity in China toward a market share of 10%. Nissan will also increase production in North America including Mexico to the 1.7 million-unit mark as it sees room for further recovery of the U.S. market.

 Nissan will increase sales of the highly efficient V-platform models to more than 1 million units and also introduce price-entry segment in those markets. Nissan has constructed strategic partnerships with AvtoVAZ in Russia, Ashok-Leyland in India, and Daimler and others in advanced countries. According to Nissan, these partnerships are supportive of Nissan's competitiveness.

 Nissan will launch a total of 51 new models during the six years. At the same time, Nissan will eliminate 13 existing models so that Nissan will have 66 models in fiscal 2016, only 2 more than what the company had in fiscal 2010. This follows the company's policy to improve sales efficiency by increasing the sales quantity per body type from 55,000 units in fiscal 2007 to 150,000 units.

 With regards to costs, Nissan will reduce total costs from research and development to vehicle transportation by 5% each year. To avoid the effect of foreign exchange, Nissan will promote the use of LCC parts and reduce the yen-based costs from 1,800 billion yen in fiscal 2011 to only 800 billion yen in fiscal 2016.

 Nissan will split the Kyushu Plant to suppress labor costs and increase procurement of parts from Asian suppliers. As a result, over 50% of Nissan's domestic production will be centralized in Kyushu to maintain domestic production of one million vehicles.

Sunny Sedan launched in China in January 2011
Sunny Sedan launched in China in January 2011
(the second model in the V-platform based family; marketed in 170 countries in the world
including North America where the car was introduced as the Versa Sedan)

Goals and backgrounds of Nissan's New Midterm Plan "Nissan Power 88"

Global market share  Nissan is determined to win a global market share of 8% by fiscal 2016 (5.8% in fiscal 2010). The company has not announced its goal with regard to sales quantity but anticipates that the global demand in fiscal 2016 will be over 90 million units. A global share of 8% equals 7.2 million units, 3 million units more than 4.19 million units sold in fiscal 2010.
operating profit
 Nissan will aspire for a sustainable operating profit of 8% (6.1% in fiscal 2010). On top of increasing the vehicle sales quantity that would contribute to increasing an operating profit, Nissan will offset the cost increases and increased fixed costs arising from external factors with yearly cost reductions.
Source: Nissan New Midterm Plan (2011.6.27)
(Notes) 1. Renault-Nissan Alliance has expressed intention to acquire over 50% ownership of AvtoVAZ's in Russia and announced that its global vehicle sales quantity in 2010 was 7,276,398 units including 570,000 units of AvtoVAZ's "LADA" brand vehicles. This means the alliance has exceeded VW (7,203,000 units in 2010) and risen to third place in the world in 2010.
2. The total global demand in fiscal 2007 was split between advanced markets at 60% and emerging markets at 40%. Nissan predicts, however, that the ratios would be reversed in fiscal 2016 to 40% and 60%. The growth targeted in the new midterm plan is to take place primarily in emerging markets and Nissan will increase production capacities in those areas.
3. The exchange rate during the new midterm plan period is set to 80 yen to the dollar in fiscal 2011 and 85 yen in fiscal 2012-2016.
4. According to Nissan President Carlos Ghosn, "Nissan Power 88" is Nissan's first midterm business plan that is given a free start since he took office and the company has all the necessary cash reserves, technologies and product plans to take aggressive actions from the very start.

Number of new products

(Infiniti brand cars shown in parentheses)
  FY2011 FY2012 FY2013-FY2014 FY2015-FY2016 Total
U.S. 1 (1) 2 9 (4) 18 (5) 51 (13)
Japan 1 1 2
China 1 2 (1) 1
Europe 2 3 5 (2)
Others   1 2
Total 5 9 19
Source: Nissan New Midterm Plan (2011.6.27)
(Notes) 1. Launching 51 models in six years dictates launching one model every six weeks to lead sales. The plan predicts that investing to increase production capacity mainly in China, North America and Brazil will support the increase in sales.
2. Nissan will adopt 15 cutting-edge technologies a year, a total of 90 during the six-year period.
Product range and segment coverage
  FY1999 FY2010 FY2016
Product range 49 models 64 models (+15)
Segment coverage 77% 80% 92%

Source: Nissan New Midterm Plan (2011.6.27)
(Note) The 13 models are to be eliminated in fiscal 2011-2016 by consolidating product overlaps, etc. For example, the next Quest and the next Elgrand will be consolidated into one model (both are sharing the D-platform since 2010) as will be Altima and Teana.

Product lineup enhancement

 Nissan will enhance the Infiniti brand models, V-platform models and light commercial vehicles, and enter the price-entry segment markets.

 Nissan is not going to launch its world strategic cars across the board in the price-entry segment market, but will enter local markets in cooperation with local partners. In China, for instance, it will launch price-entry vehicles carrying the joint venture's original brand. In addition, the new models slated for launch during the midterm business plan period, such as the new Tiida launched in China in the first half of 2011, and the new Altima/Teana and the new QASHQAI slated for later launch, will support Nissan's global growth.

Product lineup enhancement

INFINITI  Nissan will broaden the range of models and markets. Nissan sold four models in ten markets in fiscal 1999, seven models in 36 markets in fiscal 2010. In fiscal 2016, Nissan will be selling ten models in 71 markets and expand global sales from 150,000 units to 500,000 units (accounting for 10% of the world's luxury car market).
 The Infiniti JX crossover, slated for manufacturing and marketing in the United States in the spring of 2012, will be the first Infiniti car to be produced and sold there. An Infiniti EV will be introduced in 2013.
V-platform range  Nissan will expand annual sales of the V-platform models (two models consisting of hatchback and sedan) from 130,000 units in fiscal 2010 to over one million units (three models including MPV) by fiscal 2016. Nissan will maintain local content ratios of over 90% in Thailand, China, India and Mexico (see the next heading for more information).
 Nissan will make long-ranged efforts to bolster its light commercial vehicle business and become the leading manufacturer of light commercial vehicles in the world by fiscal 2016. This includes light trucks, vans, taxis, buses, SUV and pickup trucks (see Note 1).
 The price-entry segment vehicles will be developed and launched in close cooperation with the local partners to best meet the growing demand in BRICs and other emerging markets. With regard to China, Nissan will develop these vehicles based on Nissan's old model and sell them under an original brand of the joint venture.
 Nissan reportedly will develop a strategic compact car, priced at around US$5,000 and based on the old March introduced in 1992, produce it at AvtoVAZ's plant in Russia, and sell it under the "Datsun" brand in Russia, India and Southeast Asia (Nissan reportedly may make use of AvtoVAZ's existing LADA body in Russia and sell the vehicles under the LADA brand).
 Nissan has alliance with Ashok-Leyland in India for light commercial vehicles and reportedly will form a new alliance as well to develop super-low-priced cars that will compete against Tata Motors' Nano. Renault-Nissan Alliance has been developing a super-low-priced car, priced at US$2,500, in collaboration with Bajaj Auto Limited, a two-wheel vehicle manufacturer in India, but the development project seems to have deadlocked due to a disagreement regarding the price and design (reported in May 2011).
Source: Nissan New Midterm Plan (2011.6.27)
(Notes) 1. In May 2011, Nissan's multi purpose LCV, NV200, was decided to be the next-generation taxi fleet in New York City and a total of approximately 13,000 units be supplied starting in the second half of 2013. The taxicabs will be produced at Nissan Cuernavaca Plant in Mexico.
2-1. Nissan exhibited the new Tiida hatchback (HB) at Shanghai International Automobile Industry Exhibition in April 2011. The HB, produced at Huadu Plant, was launched in China in late May. Compared to the previous model, the new Tiida HB has overall length of 4295mm (+45m) and overall width of 1760mm (+65mm) and is powered by a 1600cc naturally-aspirated engine and a CVT with a sub-transmission. A GTS model powered by a 1600cc direct-injection turbocharged MR16DDT engine is also available. The new Tiida HB is based on the B-platform and larger than the V-platform-based March HB launched in 2010 (having overall length of 3779mm and width of 1666mm, powered by a 1500cc engine).
2-2. Nissan will launch the new Tiida HB in approximately 130 countries after China by 2014 and defines it as the first of its global growth models being introduced during the new midterm plan period.

Selling over one million units of the V-platform-based vehicles in the world in fiscal 2016

 The V-platform derives its title from a "versatile" platform. Production of March/Micra HB began in 2010 as the first of the V-platform family. A second model, a sedan, will be produced and sold as "Sunny" in China and "Versa" in North America. The car is defined as a "global sedan" and will be sold in 170 countries.

 Nissan will add another model to this family, to a total of three, by fiscal 2016 and plans to sell one million units a year of the V-platform-based vehicles.

Launch plans of V-platform-based models

2010-2011  Production of the V-platform-based March/Micra HB started in Thailand, India and China in 2010 and in Mexico in March 2011.
October 2011  The FFV (flex fuel vehicles) powered by 1000cc/1600cc engine will be launched in Brazil in October.
Sunny Sedan
January 2011  Nissan exhibited the new "Global Sedan" at the Guangzhou International Automobile Exhibition in December 2010. The sedan, produced at the Huadu Plant in China, was launched in January 2011 under the model name of Sunny (sales of the existing Tiida sedan were discontinued).
 The new global sedan will be marketed in 170 countries in several phases under local brands and nameplates.
Versa Sedan
Summer 2011  The new Versa sedan was exhibited at New York International Auto Show in April 2011. The car is slated for market launch this summer. Its major selling appeal is the legroom in the rear seat that is larger than most middle-sized cars. Powered by a 1600cc engine and the CVT, the car has EPA fuel efficiencies of 30 mpg city/37 mpg highway/33 mpg combined and the starting price is set low at US$10,990. It is produced at Aguascalientes Plant in Mexico for North and South American markets.

Source: Nissan New Midterm Plan (2011.6.27), press releases 2010.12.20/2011.4.19
(Note) The next model of the Note is likely to be based on the V-platform instead of the conventional B-platform and Nissan will appeal its fuel efficiency. The production site will reportedly shift from Oppama Plant to Kyushu Plant (production at the U.K. plant will continue for European markets). The Note sold 66,000 units in Japan in 2010, only next to the Serena (sold 75,000 units).


Six strategies to achieve the goals in the new midterm business plan

 Nissan has (1) Brand power, (2) Sales power and four other strategies to help achieve the goals contained in its new midterm plan "Nissan Power 88."

 (4) Zero-emission leadership is the strategy aimed at selling a total of 1.5 million EVs, including Renault products, in six years through fiscal 2016.

 (6) Cost leadership is the strategy aimed at continuing an annual 5% reduction of its total costs including logistics.

 (5) Details of plans by the region under the business expansion strategy are reported under "Key markets of the world" heading below.

Six strategies to achieve goals in the new midterm plan

(1) Brand power  Establish Nissan and Infiniti brands at a higher level than ever through engineering and commitment to the environment as showcased in Nissan LEAF (necessary for increasing market shares and profitability at the same time).
(2) Sales power  Increase the number of dealers from approximately 6,000 to 7,500 in the world during the six-year period.
 Make Nissan, already the leading Japanese brand in China, Russia and Mexico, the leading Asian brand in Europe by fiscal 2016. Increase sales power in Japan, the U.S. and the five ASEAN countries.
(3) Enhancing quality  Nissan brand: Raise Nissan to the top group in the global automobile industry.
 Infiniti brand: Elevate Infiniti to the leader of luxury brands.
(4) Zero-emission
 Engage in comprehensive activities, including the use of renewable energies and recycling of batteries, to promote a sustainable mobility. Nissan will develop a technology that will add a discharging function to its EVs as an auxiliary power source for home use. Such a new EV system will be put to commercial application by the end of this year at the earliest (see Note 1).
 Sell a total of 1.5 million EVs, between Nissan and Renault combined, in six years through fiscal 2016 (see Note 2).
 Combine 100% electrically-energized vehicles and the low fuel consumption technologies that Nissan calls "Pure Drive" (hybrid, CVT, clean diesel, start-stop system, etc.) (see Note 3).
(5) Business expansion  Targeted global market share: Increase the global share to 8% by fiscal 2016 (in fiscal 1999, Nissan sold 2.4 million units and stood at a market share of 4.6%; in fiscal 2010, Nissan had a market share of 5.8% with 4.185 million units). (See the next heading for market strengthening plans.)
(6) Cost leadership  Reduce total costs by 5% annually including expenses for purchased parts, production, and logistics for transportation to the delivery service center. To achieve this goal, Nissan will increase annual sales from 55,000 units to 150,000 units per body type, and further improve production efficiency through increased use of carry-across and carry-over parts and systems.
 Promote sales in domestic markets to increase yen-based revenue and minimize the effect of foreign exchange. Promote the use of LCC parts and increase local contents in overseas production. As a result, reduce yen-based costs from 1,800 billion yen in fiscal 2011 to 800 billion yen in fiscal 2016.
 Concentrate over 50% of domestic production in two plants in Kyushu, suppress wages according to local standards, increase procurement of parts from Asian suppliers to benefit from geographical advantages, and maintain domestic production quantity of 1 million units (see Note 4).
Source: Nissan New Midterm Plan (2011.6.27), press release 2011.4.22
(Notes) 1. The 24kWh Lithium-ion battery on the LEAF is capable of supplying enough electricity for two days' use in an average household. Because of the effects of volume production and governmental subsidies, the battery on the LEAF is less expensive than commercial household storage batteries of the same storage capacity.
2. Nissan will launch EVs based on the NV200 commercial vehicle in 2012, and Infiniti-branded EV and a commuter EV based on the tandem-seat "Land Glider" concept in 2013.
3. Nissan has introduced the one motor/two clutch hybrid system on the Infiniti M Hybrid. Nissan reportedly will make it available on the mid-sized front-wheel drive passenger cars such as the Altima/Teana in 2012 at the earliest.
4-1. In April 2011, Nissan announced a decision to establish a new company, Nissan Motor Kyushu, that would start operating in August. An agreement was reached with the company's workers' union including labor conditions after a series of talks. Although Nissan will maintain the prevailing wage standards, the company reportedly will eventually suppress the wages according to the local standards.
4-2. The Kyushu Plant used to be an export base of Nissan's medium- and large-sized vehicles. In the fall of 2010, the plant began producing the Serena minivan for domestic markets and Nissan plans to add compact cars to the production models to increase the plant's production quantities. To benefit from the geographical advantage, Nissan reportedly will procure more Asian-made parts to reduce costs and concentrate more than 50% of its domestic production in plants in Kyushu including Nissan Shatai's Kyushu Plant, thereby maintaining the one million unit mark in domestic production.


Strengthening markets in China, India, Brazil, Russia and other emerging areas

 On the prediction that the emerging markets will account for 60% of global demand in fiscal 2016, Nissan plans to strengthen its markets in China, Brazil, Russia, India and ASEAN countries. The company is eyeing a 10% share in China and will build a new plant in Brazil with an annual capacity of 200,000 vehicles. Nissan, jointly with Renault, will acquire control rights in AvtoVAZ, the leading automaker in Russia, and increase their combined share in Russia to 40%.

 Nissan's move is not limited to the emerging markets. On the ground that there still is room for further market recovery in the United States, the company will increase production in North America including Mexico from 1.1 million to 1.7 million vehicles. At the same time, Nissan will fortify its No. 2 position in Japan.

Strengthening plans for key markets of the world

China  Nissan's share in fiscal 2010 was 6.2%. The second plant in Huadu will start operating in 2012 and Nissan's capacity will increase to 1.2 million then. The company will keep increasing capacity in view of the growth momentum in China toward a market share of 10%. Dongfeng Motor Company, a joint venture between Nissan and Dongfeng Motor Corporation in China, will announce its production increasing plans in July.
 In 2012, Nissan will release two models under the brand name of Venucia (= Venus), an original brand that belongs to Dongfeng Nissan.
 Pending the Chinese government's EV subsidy policy, Nissan will start local production of EV in 2012 at the earliest.
Mexico  Nissan's share in fiscal 2010 was 23.1%. Nissan will invest in increasing production capacity and maintain the leading market share (see Note 1).
Brazil  Brazil was the only market that was missing in Nissan's tactics addressing emerging markets and its share in fiscal 2010 was 1.2%. Nissan will start building a new plant in 2011 at the earliest with a starting capacity of 200,000 vehicles eyeing a 5% market share (see Note 2).
Europe  Nissan will be the largest-volume Asian brand in Europe.
Russia  Nissan is investing in product development, local production and local procurement eyeing a 40% share in Russia together with Renault and AvtoVAZ and 7% share for Nissan alone (see Note 3).
India  Nissan will build five new models at Chennai Plant (the five models are said to be three V-platform-based models including hatchback, sedan and MPV, and the light commercial vehicle, NV200, etc.). Nissan is also considering the KD production of X-Trail currently being imported.
ASEAN 5  Nissan's share in ASEAN countries in fiscal 2010 was 6%. While Thailand is Nissan's hub for its production and export operations, Nissan will increase annual capacity in Indonesia from 50,000 to 100,000 vehicles in September 2011 eyeing a 15% market share in five ASEAN countries.
Source: Nissan New Midterm Plan (2011.6.27), Renault and Nissan press release 2011.1.28
(Notes) 1-1. In March 2011, Nissan started production of the newly-developed V-platform-based March at Aguascalientes Plant after investing US$1.05 billion (approx. 86.2 billion yen), including investments by suppliers, in its production site in Mexico. Nissan plans to produce 300,000 units a year of the V-platform-based compact cars. This includes 60,000 units of March, 30% of which will be sold locally in Mexico and the remaining 70% will be sold in Brazil and other parts of Latin America. Nissan will eventually produce the V-platform-based sedan, MPV, etc.
1-2. Nissan will produce the Infiniti JX, next Rogue crossover SUV (production will be transferred from Kyushu Plant), the Leaf EV, etc., in phases after 2012 at its Smyrna, Tennessee Plant in the United States. Nissan plans to increase the ratio of local production to sales in North America (Mexico included) from below 70% to 85% to evade the risk of foreign exchanges. The company will also increase production in North America from 1.07 million units in fiscal 2010 to 1.7 million units scale.
2. Brazil has become the fourth largest market in the world, after China, the U.S. and Japan, with 3.52 million new vehicles being sold in 2010. Nissan sold 37,276 units during the same year. Nissan's pickup truck Frontier and the Livina are being produced by Renault's Curitiba Plant and other vehicles are mainly produced and imported from Mexico.
3-1. Renault already has 25% ownership +1 share in AvtoVAZ in Russia. The Russian government is inclined to approve Renault-Nissan Alliance to have over 50% ownership in the Russian company and necessary steps are being taken at present. While Renault will be the dominant investor, Nissan reportedly will make about 15% investment as it uses AvtoVAZ plant.
3-2. Renault-Nissan-AvtoVAZ alliance plans to increase their total capacity to 1.3 million vehicles in 2012 and 1.6 million by 2015 to win a combined market share of 40%.
3-3. Nissan plans to produce engines in Russia. The company reportedly will build a new plant within the premises of a Nissan plant located in St. Petersburg, and initially produce around 50,000 engines a year to be used on the Murano, X-Trail and Teana that are being produced there.


Strategic partnerships to support Nissan's competitive edge

 Nissan has formed unique strategic collaborations with several companies, rather than following a "go-it-alone" policy, and believes that such collaborations have direct impact on the competitiveness that determines the automotive industry's leader in the 21st century.

 For instance, it has five key partnerships with Daimler, Dongfeng, Ashok-Leyland, Mitsubishi Motors and AvtoVAZ.

 Nissan is cooperating with Daimler regarding diesel engines and powertrains. In March 2011, Nissan and Ashok Leyland announced their first light commercial vehicle development which will be released to the market shortly.

 Predicting that mini-cars will continue to account for more than one third of the new vehicle sales in Japan, Nissan and Mitsubishi Motors have jointly formed a new company, NMKV, dedicated to the product planning of mini-cars.

Alliance and partnerships

(◎: Current ; ○: Future)
    Capital tie-up Joint development Joint production OEM supply
Alliance Renault
Partnerships Daimler (Note 1)
Ashok Leyland (Note 2)    
Mitsubishi (Note 3)  
Source: Nissan New Midterm Plan (2011.6.27), press release 2011.6.20
(Notes) 1. An agreement was reached in April 2010 between Renault-Nissan Alliance and Daimler regarding mutual investment and a broad range of other strategic cooperation. This includes a supply of Mercedes-Benz engines for Infiniti models and diesel engine and powertrain technologies. They will also cooperate in the fields of compact cars and light commercial vehicles. Joint development of fuel-cell vehicles is another area of cooperation under way.
2-1. In May 2008, Nissan and Ashok Leyland, an Indian corporation, announced a decision regarding their light commercial vehicle business that they would establish three joint-venture companies; (1) an automobile manufacturing company, (2) a powertrain manufacturing company, and (3) a R&D company.
2-2. In March 2011, after a delay caused by the Lehman Brothers crisis, they unveiled the first outcome of their joint development efforts, Ashok Leyland Dost, slated for market launch shortly. The LCV has a payload capacity of 1.25 tons and is powered by a three-cylinder turbocharged, common rail diesel engine with the maximum power of 55hp.
2-3. The original plan for building a new plant was postponed due to an economic recession and the LCV will be produced at Ashok Leyland's Hosur plant located in Tamil Nadu, India. Resuming the plan to build a new plant is now under consideration.
3-1. In December 2010, Nissan and Mitsubishi Motors inked an agreement regarding expansion of OEM supplies, cooperation for overseas production and cooperation in Japan regarding mini-cars.
3-2. In June 2011, the two companies established a new company called NMKV on an equal ownership basis for product planning and development of mini-cars for Japanese market. They will also cooperate in vehicle design and development as well as parts procurement. Assuming that mini-cars will continue to account for more than one third of new vehicle sales stably in the Japanese market through the future, they plan to increase their combined market share from 15% in fiscal 2010 to up to 20% in the future. It is said they will also consider joint development of mini-car-based electric vehicles.
4. In addition to the partnerships shown above, Nissan and a Malaysian automaker, Proton, signed a memorandum in 2011 regarding a feasibility study for a new business opportunity. It has been reported that Nissan will supply powertrains and platforms to strengthen Proton's products and that the technical partnership may develop to a capital alliance.


Record-high global sales of 4.19 million vehicles in fiscal 2010 with China being the largest market of all with 1.02 million vehicles

 Nissan registered record-high global sales in fiscal 2010 with 4.185 million vehicles sold (up 19.1%). Nissan sold 1.024 million vehicles in China alone and became the first Japanese automaker to top the million vehicles' mark in China. This makes China the largest market in the world for Nissan topping the U.S. (966,000 vehicles sold).

 Nissan's consolidated revenues in fiscal 2010 registered the first increase in three terms at 8,773.1 billion yen, up 16.7%. The operating profit rose to 537.5 billion yen (up 72.5%) including 433.1 billion yen worth effect resulting from an increase in vehicle sales and improved model mix. The net profit for the year rose 7.5 times to 319.2 billion yen.

Production resumed after the great earthquake earlier than other OEMs

 On June 23, Nissan announced financial forecasts for fiscal 2011. Nissan had placed an order for a large number of semiconductors, before the Great East Japan Earthquake of March 11, in anticipation of a drastic increase in worldwide production. The large stock of parts helped Nissan resume production before Toyota or Honda and return to nearly full operation in May (domestic production in May rose 0.8% to 80,036 units; global production rose 19.3% to 368,914 units). The company anticipates an increase in production and sales in the first quarter (April-June) of fiscal 2011 and plans to return to full unrestricted production in all its facilities, at home and overseas, in October.


A 9.9% increase forecast for global sales in fiscal 2011 at 4.6 million vehicles

 Because of the smoother resumption of operation than others, Nissan anticipates global vehicle sales in fiscal 2011 to be 4.6 million units, up 9.9% from the previous year (Toyota forecasts a 0.9% decrease in its consolidated vehicle sales, Honda forecasts a 6.0% decrease in its vehicle sales). Nissan expects an increase of 1.085 million vehicles in global sales in two years from fiscal 2010 through 2011.

 While the net revenue for fiscal 2011 is expected to rise to 9,400 billion yen, up 7.1% from the previous year due to an increase in vehicle sales, Nissan anticipates its operating profit will be 460 billion yen, down 14.4% due to several loss factors including the effect of foreign exchange (135 billion yen), increase in raw material and energy costs (155 billion yen) and an increase in sales costs (112 billion yen).

Nissan's global vehicle sales

(Thousand vehicles)
  FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
Japan (Incl. Mini) 842 740 721 612 630 600 610
North America
USA only
Europe 541 540 636 530 509 607 670
China 806 869 458 545 756 1,024 1,150
Others 603 591 553 709 840
Total 3,569 3,483 3,770 3,411 3,515 4,185 4,600

Nissan's global vehicle production

(Thousand vehicles)
  FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
Japan 1,365 1,192 1,263 1,050 1,025 1,073 1,155
North America (Incl. Mexico) 1,171 1,123 1,151 868 837 1,073 1,166
Europe 509 507 594 450 445 571 576
China 465 472 650 716 975 1,433 1,135
Others 581
Total 3,510 3,294 3,658 3,084 3,282 4,150 4,613

Source: FY2010 Nissan's Financial Results, press release 2011.6.23


Nissan's consolidated financial results

(Million yen)
  FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Outlook
Outlook vs. FY2010
Net revenue 10,468,583 10,824,238 8,436,974 7,517,277 8,773,093 9,400,000 7.1%
Operating profit 776,939 790,830 (137,921) 311,609 537,467 460,000 -14.4%
Ordinary profit 761,051 766,400 (172,740) 207,747 537,814 441,000 -18.0%
Net income 460,796 482,261 (233,709) 42,390 319,221 270,000 -15.4%
CAPEX 509,000 428,900 383,600 273,600 312,000 410,000 31.4%
R&D 464,800 457,500 455,500 385,500 399,300 460,000 15.2%
FX rate (JPY/USD) 117.0 114.4 100.7 92.9 85.7 80  
FX rate (JPY/EUR) 148.2 161.6 144.1 131.2 113.1 115.0  
Source: FY2010 Nissan's Financial Results, press release 2011.6.23
(Notes) 1. Nissan's interest-bearing debt in automotive business exceeded its cash reserves for two terms in a row, but the company had 293.3 billion yen in cash at the end of the term as the debt was paid off with the cash flow in fiscal 2010 (459.3 billion yen).
2. The Great East Japan Earthquake caused the company an extraordinary loss of 39.6 billion yen after a decrease in domestic production in March (by 55,000 vehicles), a decrease by approximately 30,000 vehicles in wholesale, fixed expenses during the suspended production, repair costs of the damaged facilities, etc.

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