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Nissan Motor Says It May Delay Achieving Key Sales Target Due to Weak Performance

TOKYO April 16, 2007; The AP reported that Nissan Motor Co. said today that it may have to push back a key sales target it aimed to hit next fiscal year, a blow to Carlos Ghosn, the chief executive who has led Nissan's turnaround.

Nissan, Japan's third-largest automaker, is aiming to sell 4.2 million vehicles globally in the fiscal year ending March 2009 as part of a three-year revival plan.

But weak performance last year, blamed on a dearth of new models in North America, may mean it might take longer to meet the target, said a Nissan spokeswoman who spoke on condition of anonymity.

"There's a possibility that there would be a delay in meeting that number," the spokeswoman told Dow Jones Newswires.

She declined to offer a new timeframe, saying Ghosn would likely provide additional details when he briefs on Nissan's results later this month.

The company's setback would underscore the difficulties Nissan faces in recovering from a slump last fiscal year. It is likely to report its first annual drop in net profit in seven years for the year ended in March on account of sluggish sales in Japan and the U.S.

Nissan expects its group net profit to fall 11 percent to 460 billion yen (US$3.87 billion; euro2.86 billion) for last fiscal year -- a stark contrast to rival Toyota Motor Corp., which is expected to report record earnings on steady growth in sales in North America.