February 2, 2000
Comments on Recent Japanese Domestic Sales
Tokyo -- Japan Automobile Dealers Association (JADA) on February 1 announced the preliminary domestic sales results for January 2000 showing a 2.8% increase versus the same period last year in the overall market and a 5.5% decline in sales for Nissan Motor Co., Ltd. with a market share of 20.1%. Pending official release of January sales, the company commented that the drop in sales was the result of increased competition and a poor Nissan model mix.
Addressing the need for new products, the company has overhauled its product development process as a part of the Nissan Revival Plan. Under the new system Nissan has named new Program Directors designated to managing new product development. "With the creation of the Program Director position, we are better prepared to bring more attractive and exciting products to the market," said Patrick Pélata, EVP of Planning Group. The overhaul also includes a major revamping of the company's platform strategy, reducing the number of platforms from 24 to 12 by FY 2004.
The company further commented that the present weakness of Nissan's sales in Japan is having a negative impact on the current fiscal year. As a consequence, Nissan announced that the consolidated operating profit for the full year is likely to be lower than the forecast released on November 22, 1999.
In the meantime, the implementation of the Nissan Revival Plan is proceeding rapidly and as planned in laying the foundations of Nissan's return to profitability and growth. The company reiterated its three main objectives; return to net profitability in FY2000, reduction of 50% net automotive debt by FY2002, and achieving a 4.5% operating margin by FY2002.
Official industry and company sales will be released later this month.
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