CAR manufacturer Nissan celebrated a milestone in the turnaround of its fortunes yesterday after posting record results and clearing its debts.

The Japanese automotive company sold 3,388,000 vehicles in the past year, which helped push its assets back into the black for the first time in six years.

Nissan president and chief executive Carlos Ghosn said: "The story of Nissan's revival is now complete."

Mr Ghosn was appointed in 1999, when the group was on the verge of bankruptcy, with debts of about £18bn.

The outspoken Brazilian announced yesterday that Nissan had more than £1bn in the bank at the end of the past fiscal year.

Total group sales in the US grew more than 18 per cent, topping the one million-mark for the first time. But European sales were static at 544,000 units.

Mr Ghosn said: "Last year, Nissan rose to the challenge and delivered a record performance, despite many headwinds, such as unfavourable exchange rates, higher commodity prices, higher incentives and higher interest rates.

"The fundamentals of the business are strong, our products are attractive to consumers, and Nissan is poised for sustained, profitable growth."

His three-year plan, Value-Up, aims to achieve global sales of 4.2 million in 2008.

"Within this framework for action, we will create more value for more customers, employees and shareholders in more world markets than ever before," he said.

Nissan's Sunderland plant, consistently the most productive in Europe, will play a key role.

The group is investing more than £220m in the region, where it will build its new model, provisionally called the Qashqai.

By 2007, the plant's total annual production will reach 400,000 cars.

The group's net revenues reached about £42bn, up 15.4 per cent, while operating profit rose 4.4 per cent to £4.2bn.

Mr Ghosn warned various issues could affect the global business this year, including volatile exchange rates, as well as rises in commodities, interest rates and energy prices.