Since taking the helm of the floundering Nissan auto company in 1999, Chief Executive Officer of Nissan, Carlos Ghosn, has made audacious plans.? His first plan, the Nissan Revival Plan (NRP) announced in October 1999 called for quickly returning Nissan to profitability, reducing debt, and cutting costs while creating long-term growth opportunities.? This was to set the stage for explosive growth. NRP seemed impossible, but it worked, and Carlos Ghosn became a legend in Japan and in the auto industry.
Ghosn, who now also heads Renault, the company that purchased the floundering Nissan in 1999 and put him in charge, has developed a reputation for making bold public business plans, and this week he made another.
“Nissan Power 88,” Ghosn?s plan that went into effect on Monday, June 27 as he announced it, is a wide-ranging six year business plan that will accelerate the company’s growth across new markets and segments.
The name of the plan emphasizes key corporate goals: Nissan will renew its focus on the overall customer experience through actions that elevate its brands’ power and sales power. By the end of fiscal 2016, the company will aim to achieve a global market share of 8% and increase its corporate operating profit to a sustainable 8%.
Highlights of Nissan Power 88 reflect Nissan’s clear, global vision and strategic direction through fiscal 2016:
- Nissan’s extended new product plan will deliver, on average, an all-new vehicle every six weeks for six years. The company’s global portfolio will have 66 vehicles and will cover 92% of all markets and segments.
- The emphasis on sustainable mobility will continue, encompassing zero-emission vehicles and low-emission technologies that support PURE DRIVE. Cumulative electric vehicle sales for the Renault-Nissan Alliance will reach 1.5 million units.
- “Mobility for all” will expand with dedicated new cars and light commercial vehicles (LCVs) developed for entry-level segments and emerging markets.
- Nissan will introduce more than 90 new, advanced technologies, averaging 15 per year.
“Nissan Power 88 is the roadmap for our company’s profitable growth,” said Nissan President and Chief Executive Officer Carlos Ghosn. “We will accelerate our growth, bringing more innovation and excitement to our products and services as well as cleaner, more affordable cars for everyone around the world, in line with the energy and environmental challenges of the 21st century.”
Nissan will increase investments in its brands and retail networks to enhance its customers’ entire ownership experience. Nissan currently has 6,000 major points of sales globally; the retail network will expand to 7,500 in the midterm plan period.
Business expansion will focus on growth markets and further developing the company’s Infiniti and light commercial businesses.
- In 2012, Nissan will have a production capacity of 1.2 million units in China. China has become – and will continue to be – Nissan’s largest single global market. Nissan aims for a 10% share of the Chinese market. Nissan will also increase its presence in Brazil, Russia and India, as well as in the next wave of emerging markets.
- In Brazil, Nissan will build a new plant, with a capacity of 200,000 units as a first step.
- Nissan NV200’s selection as New York City’s “Taxi of Tomorrow” illustrates the company’s momentum in the LCV field. By 2016, Nissan will be the world’s leading light commercial vehicle manufacturer.
- The Infiniti premium brand will grow from its 2010 sales level of 150,000 vehicles to 10% of global market share among luxury brand segments, a level today that would represent 500,000 vehicles.* Infiniti will be present in more than 70 markets with a product range of at least 10 vehicles.
“Nissan Power 88 is a demanding business plan, but our company has a proven track record of achieving challenging objectives,” said Mr. Ghosn.