FACTBOX-Main points of Nissan's 5-year business plan

May 13 (Reuters) - Nissan Motor Co , Japan's No.3 automaker, announced on Tuesday a new business strategy plan called Nissan GT 2012 -- "G" for growth and "T" for trust -- to run for the five years to March 2013.

Some targets under a previous plan have yet to be met after Nissan delayed their completion last year.

Following is the gist of the automaker's plans:

-- Quality: In addition to focusing on product quality, Nissan said it would continue and accelerate improvements in service, brand and management quality. As one indicator of product quality, it aims to reduce warranty claims by 50 percent.

-- Zero-emission vehicles: As announced earlier, Nissan will introduce an all-electric vehicle in the United States and Japan in 2010 and then mass-market a range of models to consumers globally in 2012.

-- Five percent revenue growth on average over five years, supported by planned launch of 60 all-new models. One-third of those will be from vehicles launched in new segments, while the rest will be replacement of existing models.

-- Business expansion in Infiniti: Double sales volume for the luxury Infiniti line to 300,000 vehicles in 2012/13 from 2007/08 level.

-- Business expansion in light commercial vehicles: Double revenue, including original equipment manufacturing (OEM) deals and joint venture sales, to 980 billion yen.

-- Business expansion in global entry cars. As announced on Monday, begin offering an ultra-low-cost car starting at $2,500 with Renault SA and Bajaj Auto in India from 2011. Develop a compact car sourced and produced in five "LCC", or leading competitive countries, including India and Thailand.

-- Regional vehicle sales expansion:

- India: more than 200,000 vehicles in 2012/13

     - Brazil: more than 100,000 vehicles in 2012/13 versus
15,000 in 2007/08

     - China: more than 800,000 vehicles in 2012/13 versus
458,000 in 2007/08

     - Russia: more than 282,000 vehicles in 2012/13 versus
141,000 in 2007/08

     - Middle East: more than 400,000 vehicles in 2012/13
versus 198,000 in 2007/08

-- Per-share dividend of 42 yen in 2008/09, 44 yen in 2009/10, 46 yen in 2010/11. Chief Executive Officer Carlos Ghosn said dividend plans for the final two years will be announced during the 2010/11 business year.

-- Purchasing cost reduction, including by halving precious metals use per vehicle for 2009/10 and 2010/11 vehicle models.

A year ago, Nissan said it would take an extra year to achieve its targets of posting a "top level" of operating profit margin among global automakers, and an average return on invested capital (ROIC) of 20 percent in 2008/09. It is also now targeting sales of 4.2 million vehicles in 2009/10, a year later than its initial plan.

The target delays came despite conservative currency rate assumptions of 100 yen to the dollar and 120 yen to the euro for the final two years of the plan. (Reporting by Chang-Ran Kim; Editing by Hugh Lawson)

Copyright © 2008 Reuters Limited. All rights reserved. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of Reuters Limited

Copyright © 2008 Yahoo! Southeast Asia Pte Ltd (Co. Reg. No. 199700735D). All Rights Reserved.
Privacy Policy - Terms of Service - Community - Help