Nissan said it plans to have 8% of the global market for light trucks and cars by the end of 2016. The Japanese manufacturer did not mention that every other global car company has similar goals. The program is called “Nissan Power 88.” The company does not make it entirely clear what that means.
“Nissan Power 88 is the roadmap for our company’s profitable growth,” said Nissan Chief Executive Officer Carlos Ghosn. “We will accelerate our growth, bringing more innovation and excitement to our products and services as well as cleaner, more affordable cars for everyone around the world, in line with the energy and environmental challenges of the 21st century.”
Nissan says it will build better products and increase its number of dealers.
Toyota’s worldwide market share goal has been 15% for some time. It recently backed down from that to show the public that it will not put safety over sales, but safety alone does not satisfy shareholders. GM (NYSE: GM) held the top worldwide market share position for decades only to lose it to Toyota three years ago. Production problems due to the Japanese earthquake will put GM back into the top spot with a share of 14%. VW has pledged to pass Toyota and GM, despite its anemic sales in the US.
All of the largest car companies realize that China is the key to their worldwide growth prospects. Nissan sold one million vehicles in the world’s largest market in 2010. GM sold 2.3 million cars. VW sold about the same number as GM. Every major car company has flooded the People’s Republic with new models. The competition there will get much harder.
Nissan is vague about how it will reach its goals. It has to be. The battle for market share is won or lost nation- by-nation. Nissan did not give any detail about how that would work for it.
Douglas A. McIntyre
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