Times are tough in the US auto industry, and Nissan CEO Carlos Ghosn doesn't see the situation improving any time soon. Ghosn and company are planning under the assumption that overall US sales won't break 15M units for the year, which is a substantial 2M units less than just three years ago. To complicate matters, the Japanese automaker expects steel prices to rise either later this year or early in 2009, which would put further strains on the entire industry.
While times are tough, Ghosn does see a silver lining for Nissan, as the Japanese automaker has a full lineup of fuel efficient cars that customers are buying. That should translate into increased market share, though since it's a larger piece of a smaller pie, it probably won't translate into more year over year volume. While that isn't reason enough to break out the Dom Pérignon, it's better than most automakers can say these days.
After sharing tea at Nissan's European Design Centre in central London, Carlos Ghosn, President and CEO of Nissan Motor Company, and the Right Honorable Gordon Brown, the British Prime Minister, released the news that Nissan will design and build an all-new compact car in the UK's Sunderland plant. The car, a dedicated A-platform, will be used for several new models, including the next-gen Micra. According to the press release posted after the jump, the new Nissan will fill the void created when the current version of the Nissan Micra ends production in 2010. A boon for the local economy, the Sunderland facility employs 4,700 Brits who helped produce 374,000 vehicles in 2007. Nearly 80-percent of those were exported, making Nissan the largest vehicle exporter in the United Kingdom.
The media has given a lot of attention to Toyota and GM in the race for automotive electrification. After all, many of the other current players in the game license their technology from the likes of these two. Nissan has remained relatively quiet in the competition though, sitting behind its Hypermini small electric vehicle and Hybrid Altima, the latter of which happens to be the result of one of those previously mentioned licensing deals. The recent 2008 New York Auto Show saw Nissan taking things a step further, however, with the unveiling of an electric Cube concept that's expected to hit production by 2010. According to Carlos Ghosn, it's just the beginning of a worldwide full electric lineup for Nissan and its alliance partner Renault.
The run up of oil prices and, of course, the current marketing trend that makes being environmentally aware the hip thing for squares, makes the future market for electrified vehicles a more viable prospect. Technological advances, especially in batteries, have also made an electric venture more economical. Mr. Ghosn expects a global mass market for electric vehicles by 2012 and fully anticipates that Nissan will be a part of that band wagon. The Chief Executive also hopes to push demand through the creation of government tax incentives for zero-emission vehicles, making their lifetime cost to consumers below that of any gasoline chugger.
According to Carlos Ghosn, CEO of Renault-Nissan, the Franco-Japanese carmaker is not interested in adding additional alliances with Chrysler at this time. While Chrysler recently inked a deal to have Nissan manufacture subcompacts to sell in South America, that is as far as it goes. "We have an OE deal. Period," Ghosn said during an interview at the Geneva Motor Show.
It seems Nissan's eyes are elsewhere. Watching GM sales in Russia double from 2006 to 2007, and believing the Russian car market may surpass Germany this year, Renault-Nissan wants its share of the pie, too. The first move was taken when Renault purchased a 25% stake in Avtovaz in December 2007. Avtovaz is Russia's largest automaker and the manufacturer of Lada, its best-selling brand. Now, the company needs to quickly transfer Nissan and Renault platforms and engines to Lada in order to modernize its lineup and compete with an increasing number of imported brands. Once that job is complete, Renault-Nissan will move towards assembling vehicles in Russia, as well.
Don't bet that Ghosn isn't still eyeing Chrysler, as he was quick to add, "We are going to continue to do deals with everybody when they make sense." Of course he will.
Carlos Ghosn, President, Knight, and big cheese at Nissan Motor Company and Renault, says the U.S. auto industry is in recession. Ghosn told the Associated Press, "We are very lucid on the situation of the industry that there is a recession in the United States, at least in the car market." With Nissan division sales in North American down 7.8 percent from this time last year (and the word "recession" literally meaning "the act of receding") few can contest his statement.
The Associated Press report adds that deflated U.S. car and light truck sales in 2007 marked the worst sales year in a decade. Brushing off long-term concerns, Ghosn is optimistic the market will improve. Yet, he cites the rising cost of raw materials as yet another concern for automakers. Maybe the best solution to Nissan's current problem is to quintuple production of the GT-R, sell it as both a Nissan and an Infiniti, and bait us all with attractive lease deals? Yes, that would definitely do the trick.
Relentless deal maker Carlos Ghosn has never stopped looking for any partnership that would give Renault a plum position in a profitable market. Already close to a Nissan deal with Chrysler working on Renault and Nissan deals in the Middle East, his latest paramour is in Russia. Ghosn has secured himself and four Renault managers seats on the board of AvtoVaz -- the company which, as you're all aware, is more popularly known for the name of its signature vehicle: the Lada.
Ghosn's idea is that Russia will be the hottest thing going in two years, so he needs to book his place now. Renault will take a 25-percent stake in AvtoVaz, and the board members from Renault will be focused on technology and cost-cutting issues. AvtoVaz will still be led by its Russian majority shareholders -- one of which is the State -- but will benefit from the expertise of one of the most efficient men in the business. To boot, they are also in talks with Renault about assembling Logans and Meganes. Who knows -- if Russia really does become that important and AvtoVaz proves itself with the hatchbacks, perhaps it'll get a shot at a Lada GT-R?
Renault-Nissan president Carlos Ghosn is arguably one of the most effective automotive industry executives, and having just embarked upon a tour of the Middle East, may prove to be more effective than the endless stream of government and military envoys parading in and out of sand-swept capitals.
Ghosn flew to Israel, where he met with Prime Minister Ehud Olmert and President Shimon Peres and announced a project to launch an electric vehicle network in the country's burgeoning and overcrowded Mediterranean metropolis of Tel Aviv. The project, called "Better Place", is being led by former SAP executive Shai Agassi (seen shaking hands with Ghosn above), and is financially supported by Israel Corp, the holding company that controls shipping giant Zim and recently embarked upon an automotive joint venture in China. (The Knesset, Israel's parliament that usually has to support any such ventures itself financially, has paved the way by preparing supportive legislation.) Renault will develop the vehicles, which are projected to have a 160-km range on the highway, or 100 in the city, hit 100km/h (62mph) in 13 seconds and top out at 110 km/h. The cars are expected to hit the shuk (that's "market" in Hebrew and Arabic) in 2011.
While he was at it, Ghosn hopped over to Morocco to announce the construction of a new plant for Renault and Nissan. (Yes, we know Morocco is not technically part of the Middle East, but Northern Africa is often grouped together with it. So please don't shoot us.) The new factory in Tangiers will have a capacity of 400,000 vehicles per year and will employ 6,000 directly and 30,000 indirectly. Renault will use the facility to build cars on the cost-effective Dacia Logan platform, while Nissan will manufacture light commercial vehicles there, as well.
