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Nissan Motor (OTCPK:NSANY) launched a business plan on Monday that the Japanese automaker said is aimed at driving value and enhancing both competitiveness and profitability.
As part of the Arc Plan, Nissan (OTCPK:NSANY) targets an additional one million in unit sales compared to fiscal year 2023 and operating profit margin of more than 6% by end of fiscal year 2026. The plan also included 30 new models to be launched by fiscal year 2026, of which 16 will be electrified. 60% of internal combustion engine passenger-vehicle models are slated to be refreshed by fiscal year 2026.
Nissan (OTCPK:NSANY) said it will also boost EV competitiveness by reducing the cost of next-generation EVs by 30% and achieving EV and ICE vehicle cost parity by fiscal year 2030. Significant next-generation EV cost reductions are to be achieved through grouped "family" development, with vehicle production under the approach starting in fiscal year 2027. The plans also incorporate strategic partnerships expanding into technology, product portfolio, and software services. In all, new business ventures are anticipated to unlock a potential 2.5T yen in additional revenues by fiscal year 2030.
For investors, dividends and buybacks are being targeted to bring a total shareholder return of more than 30%.
"Faced with extreme market volatility, Nissan is taking decisive actions guided by the new plan to ensure sustainable growth and profitability," stated Nissan (OTCPK:NSANY) Chief Executive Officer Makoto Uchida.
Shares of Nissan Motor (OTCPK:NSANY) edged 1.05% higher in premarket trading.