Ghosn Cites Global Challenges For Auto Makers
By JOSEPH B. WHITE
Staff Reporter of THE WALL STREET JOURNAL
January 9, 2006; Page B3
Carlos Ghosn, chief executive of automotive partners Renault SA and Nissan Motor Corp., said yesterday that global auto makers will get "no relief coming from overall growth" in vehicle sales in the U.S., European or Japanese markets. He also said he sees "no place for half measures" in a soon-to-be announced restructuring plan for French car maker Renault.
Mr. Ghosn expressed concern that the continuing problems of big U.S. auto makers General Motors Corp. and Ford Motor Co. -- which are losing market share and suffering sizable losses in their North American operations -- aren't good for rivals.
"When the big players in the market are in trouble, everybody is in trouble," Mr. Ghosn said. Beyond price pressures created by big discount programs run by GM or Ford to sustain sales, Mr. Ghosn said he's concerned about the health of U.S. suppliers.
"When the car manufacturers get a cold, the suppliers get pneumonia," he said, speaking in an interview at the North American International Auto Show in Detroit.
Mr. Ghosn, who has said he plans to outline on Feb. 9 a restructuring plan for Renault to boost profit margins, said that in this environment "there is no place for half measures, no place for complacency. If you start watering down any plan, you're doomed."
WALL STREET JOURNAL VIDEO
Nissan Motor CEO Carlos Ghosn says 2006 will be the year of fuel-efficient cars.
AUTO SHOW COVERAGE
See complete coverage of the North American International Auto Show in Detroit, including our News Tracker.Mr. Ghosn declined to discuss details of his strategy for Renault, but indicated that he intends to take more advantage of Renault's Romanian affiliate, Dacia, which has had a surprise success in Western Europe with its low-cost Logan sedan. In addition, he said, "Korea is certainly a very important area for Renault." Renault is acquiring full control of its Korean affiliate Samsung and Mr. Ghosn said Korea will be an important base for Renault.
Mr. Ghosn said Nissan, in which Renault has a 44% stake, is gearing up for another round of growth in the U.S., after a relatively slow year for new-model launches. Starting in September 2006, he said, "we'll have one of the biggest rollouts of products for Nissan" in the U.S. Among the Japanese car maker's new models: A small car called Versa, a reengineered Altima midsize sedan, a "heavily redesigned" Nissan Quest minivan, and a redesigned Infiniti G35. Other models, including the Nissan Murano crossover SUV, will also be refreshed he said.
Mr. Ghosn said he plans to continue as chairman of Nissan's North American business through 2006. "It's a crucial year," he said. In addition, Mr. Ghosn said running Nissan North America allows him to stay in touch with day-to-day operations. |
