Nissan CEO expects profitability to improve this year

Article by Anita Panait, on February 24, 2014

Carlos Ghosn, chief executive of Nissan Motor Co., expects the carmaker’s profitability to improve this year after missing out on the yen-induced earnings windfall at Japanese exporters. "You can bet on the fact that 2014 is going to see an improvement compared to 2013," Ghosn said in an interview.

According to estimates of analysts surveyed by Bloomberg, Nissan will likely generate lower margins than its local rivals in the year ending March, while the weaker yen boost earnings at carmakers like Toyota Motor Corp. to record highs. That could be partly attributed to the fact that Nissan offered higher incentives in the United States than any Asian carmaker, causing its North American income to drop.

Ghosn doesn't expect high incentives to continue and for margins to rebound in the US.

"I can see profitability in the U.S. improving due to stabilization of our plants in North America because we have had a lot of expansion," Ghosn said. "When you reach the stabilization level, the level of profit moves up."

Ghosn remarked that Nissan will disclose additional management overhaul in mid-March as the Japanese carmaker tries to achieve a target raising its global market share to 8 percent as well as generating operating margins of 8 percent by March 2017 under a scheme call Power 88 plan.

Topics: nissan, ceo, profit

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