Nissan to shift focus to increasing profit margins

May 13, 2014 10:15 am

Carlos Ghosn, CEO of Nissan Motor Co has said the Japanese carmaker will prioritise boosting profit margins over market share, signalling a shift in emphasis after the company forecast the lowest operating margin among its peers for this financial year, Reuters has reported. Profitability at Japan’s second-biggest carmaker has been squeezed by the cost of a rapid expansion drive, aimed at lifting its global market share to 8% by 2016-17, compared with 6.2% in the year ended March. “We obviously can’t reach 8% operating margin without growing, but at the same time we don’t want the growth to be in contradiction with the profit goal,” he told a news conference. “I think the most important is the 8% operating margin.”