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Nissan posts record sales, $4.28 bn net profit
by Staff Writers
Tokyo (AFP) May 11, 2012


Nissan on Friday posted a $4.28 billion full-year net profit and record sales as the Japanese automaker shrugged off the devastating impact of last year's quake-tsunami disaster on production.

Japan's second-biggest automaker said it earned 341.43 billion yen in the fiscal year to March, up 7.0 percent year-on-year, surpassing its forecast of 290 billion yen and bucking a national trend of falling auto profits.

The company said sales rose to their highest-ever 9.41 trillion yen with 4.85 million vehicles sold globally, even after a year that saw natural disasters and a high yen play havoc with many automakers' operations.

Vehicle sales rose in Japan, the United States, Europe and Nissan's biggest market, China, now the world's largest auto market, where the firm said sales jumped about 22 percent in fiscal 2011.

For the current year, Nissan said it expected a net profit of 400 billion yen on soaring sales of 10.3 trillion yen, and forecast it would sell 5.35 million vehicles around the world, up about 10.0 percent.

This will be "a good year for the industry, particularly if you are in a well-equipped position," chief executive Carlos Ghosn told a news briefing in the city of Yokohama, where the company is based.

"We want to be ... the number one Asian brand in China, Russia and Brazil."

Ghosn added that "India's going to be very difficult because of the big presence of Suzuki.. but for China we are already number one. And in Russia we want to be the number one."

"In Brazil, we are investing to make it a reality," he said.

Nissan's results stood in stark contrast to fellow Japanese auto titans Toyota and Honda whose full-year profits tumbled in the same period.

Masataka Kunugimoto, an auto analyst at Nomura Securities in Tokyo, said Nissan's results "were good partly because its rivals performed badly."

"But this year rival automakers will recover, so it could be a more difficult year for Nissan," he added.

However, the analyst said the firm's forecasts were "realistic given that Nissan's performance has been very good in China and the United States."

The first six months of 2011 were torrid for the nation's manufacturers, with the lingering impact of March earthquake-tsunami hamstringing production lines and electricity-saving measures squeezing capacity.

Nissan, Toyota and Honda all slashed production and shuttered plants because of power shortages and a component supply crunch.

Japanese exporters have been battling the crippling effects of a sky-high yen, which makes their products more expensive overseas and erodes repatriated profits, a point underscored by Ghosn on Friday.

"All the negativities of results (are) coming from the impact" of the yen, he said.

Flooding in Thailand that created a component shortage also proved a drag for firms with plants in the Southeast Asian nation.

Nissan shares were up 3.34 percent at 804 yen on Friday, with the results released just as markets closed.

On Wednesday, Toyota said its net profit for the year to March was 283.56 billion yen, a 30.5 percent on-year fall, while Honda said late last month that its earnings for the period hit 211.5 billion yen, down about 60.0 percent.

Nissan said Friday it would release 10 new products globally in the current fiscal year as the company locks horns with global heavyweights General Motors and Volkswagen.

The Japanese firm has announced it would dust off the shelved Datsun brand for emerging markets and start making a new midsize hatchback at its huge plant in Sunderland in the north of England from 2014.

It is also planning to build two models of its luxury Infiniti brand in China, while it and partner Renault this month announced a deal that gives them control of Russia's Avtovaz, owner of the iconic Lada brand.

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47,000 Chevrolets recalled in China over brake fault
Shanghai (AFP) May 11, 2012 - China's industrial quality watchdog ordered Friday the recall of more than 47,000 Chevrolet cars due to a faulty brake fluid reservoir.

The recall concerns Chevrolet Aveo sedans made this year, the General Administration of Quality Supervision, Inspection and Quarantine said in a notice on its website.

The agency said the alarm system built into the brake fluid reservoir may fail to give the driver a timely warning that fluid levels are low.

General Motors said it saw record sales in China in April, despite a broader slowdown in the world's biggest car market.

GM sold 227,217 vehicles in April, up 11.7 percent from the same month last year, it said in a statement. GM also registered a sales record for the month of March.

For the first four months of the year, GM's China sales rose 9.4 percent year-on-year to 972,369 units.

China is the world's largest auto market after overtaking the United States in 2009.



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Electric-powered van to make trans-Africa trip
Nairobi (AFP) May 10, 2012
An electric-powered van launched a trip Thursday to cross eastern and southern Africa, in an expedition designed to showcase the endurance of the vehicles and promote green energy use. "We want to break the cliches of electric-powered vehicles," said driver Xavier Chevrin, speaking at the expedition launch in the Kenyan capital, at the offices of the UN Environment Programme (UNEP), which is ... read more


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