Nissan Motor Co. shares fell the most in six weeks after the Japanese automaker detailed a new mid-term plan that calls for 1 million additional vehicle sales within three years, a target that one analyst described as “aggressive.”
Author of the article:
Bloomberg News
Supriya Singh
Published Mar 25, 2024 • 1 minute read
31esa2ksi3f0ahb6a2m)dtle_media_dl_1.png Source: Nissan
(Bloomberg) — Nissan Motor Co. shares fell the most in six weeks after the Japanese automaker detailed a new mid-term plan that calls for 1 million additional vehicle sales within three years, a target that one analyst described as “aggressive.”
The Japanese carmaker will add 30 new models, 16 of which will be electrified, by March 2027, Makoto Uchida, Nissan’s chief executive officer, said at a news conference Monday. Nissan is also seeking to reduce the cost of next-generation EVs by 30%. The stock fell as much as 6% in morning trading in Tokyo, its biggest intraday decline since Feb. 9.
Advertisement 2
This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.Daily content from Financial Times, the world’s leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.Daily content from Financial Times, the world’s leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.
Sign In or Create an Account
or
Article content
Article content
The new sales target effectively seeks to regain lost ground over the past few years. Nissan is targeting 3.55 million unit sales for the current fiscal year, which ends this month, compared with roughly 5 million five years ago. An aging product pipeline, lack of hybrid options in North America and intensifying competition in China have all contributed to the decline.
“We have to change our ways to compete with companies like BYD,” Uchida said in an interview with Bloomberg News. Nissan, he added, must be “flexible” in its approach.
Read More: Nissan Plans to Boost Sales by 1 Million Cars by 2027
Even so, it’s forecasting higher operating profit during the period, thanks to cost-cutting measures. Nissan is also seeking to achieve an operating profit margin of at least 6% by March 2027.
“The shares have been rallying ahead of the announcement; our first take is that news flow now seems to be exhausted,” Arifumi Yoshida, director of pan-Asia autos coverage at Citigroup Global Markets Japan Inc., wrote in a report. The goal of raising sales by 1 million “looks aggressive,” he added.
Nissan is also looking to launch new models in North America, Canada, Japan and Europe through March 2027, and invest $200 million in the US.
“We can’t succeed if we keep doing things the same way,” Uchida said at the news conference.
Article content
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Financial Post – https://financialpost.com/pmn/business-pmn/nissan-drops-after-setting-new-mid-term-targets-for-evs-sales
