Nissan Focuses on Argentina - Analyst Blog

Nissan Motor (NSANY) intends to strengthen its presence in Argentina by forming a partnership with Manuel Antelo in late 2011. At the end of 2011, the responsibility to market the automaker’s products in the country will be handed over to Antelo from its present distributor, Renault Argentina S.A.

Presently, Antelo is the owner and President of CAT Group, a French multinational company specializing in vehicle and parts logistics. He is also the owner of Car One Argentina, the largest automotive retail business in the country.

In 2010 to date, Nissan has achieved a 2% market share in Argentina with the success of its compact car, Tiida. With the help of the partnership, the company expects to achieve a market share of over 5% in 2014.

Recently, Nissan has revealed it plan to open a joint venture assembling facility in South China with its partner Dongfeng Motor Corp. By opening the new facility, Nissan intends to ease capacity constraints due to the rising demand at its existing plants in Huadu and Xiangfan. The new facility will raise total production capacity of the automaker in China by 160%.

In the first quarter of its fiscal year 2010, ending March 31, 2011, Nissan showed a profit of ¥106.6 billion ($1.16 billion) in contrast to a loss of ¥16.5 billion ($180 million) in the same quarter of previous year.

Revenues in the quarter rose 35% to ¥2.1 trillion ($22.28 billion). Operating profit totaled ¥167.9 billion ($1.82 billion). Nissan forecasted to earn ¥150 billion ($1.67 billion) in the full fiscal year.

During fiscal 2010, Nissan plans to introduce 10 models globally. The automaker has already launched its compact sports crossover, Juke, in June. The remaining models, including the 100% electric and zero-emission compact 5-door hatchback car Leaf, will be introduced in the rest of 2010.
 
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