Business / Corporate

Nissan to lower midterm sales goal, sources say, in shift from Ghosn's expansionary policy

JIJI

Nissan Motor Co. is planning to lower its midterm sales goal, in an apparent pivot from former Chairman Carlos Ghosn’s expansionary policy, sources with knowledge of the matter said Thursday.

The automaker is expected to announce the downward revision on Tuesday, when it is scheduled to release financial results for the year that ended in March.

In its midterm business plan, which was released in November 2017 when Ghosn was at the helm, Nissan set a goal of boosting sales by 30 percent to ¥16.5 trillion in the year ending in March 2023.

The firm had sought to increase sales in emerging economies under the business plan, such as South American nations and India, as well as major markets including China and North America.

In February, following Ghosn’s arrest in November last year, Nissan President and Chief Executive Officer Hiroto Saikawa signaled a departure from the former chairman’s excessive focus on expansion.

Nissan has twice cut its earnings projections for the year ended in March due to falling vehicle sales globally.

Ghosn, former chairman of both Nissan and its French alliance partner, Renault SA, has been indicted by Tokyo prosecutors on charges of financial misconduct. Ghosn has denied all charges.

The alliance, which also includes Mitsubishi Motors Corp., plans to re-examine its goal of boosting its global vehicle sales to 14 million units in 2022 from some 10.75 million sold last year.