Carlos Ghosn, the top executive in the Renault/Nissan alliance, says he considers the call for tougher regulations of CO2 emissions and better fuel economy not only a challenge but an opportunity.
"I don't consider CO2 (regulations) or climate change as a (problem.) I see it as an opportunity. What you want is a car that's going to be a showcase for performance and performance is many kinds of things. Controlling CO2 is part of performance, fuel efficiency is part of performance. I think this a chance to adapt the car to the 21st Century," said Ghosn.
Ghosn said Renault/Nissan is putting a lot of emphasis on new batteries for electric vehicles because workable electric vehicles have to be considered part of the solution, he said.
"We're seeing a lot of interest in these technologies," Ghosn told reporters at the Tokyo Motor Show.
Ghosn also disclosed the Nissan's new GT-R. Nissan is already getting orders from the Middle East and the first three months of production from the factory inJapan, which is geared to build about 12,000 of the vehicles annually, has already been sold out to enthusiasts who have basically bought the car sight unseen. The Nissan stand will be mobbed when the doors to the Tokyo Motor Show open to the public, Ghosn predicted.
Meanwhile, Ghosn also said he is still interested in expanding the Renault-Nissan global alliance to include a North American company.
"We already have a partnership in China with Dongfeng. We're going to establish a partnership in India . But when I was talking about expanding the alliance," I was talking mainly about a North American partner," Ghosn explained. "Because, overall, that's where our presence is today the smallest. Nissan has about five-percent market share and Renault has zero. In Europe we are much bigger and in Asia it's coming."
Ghosn added he had no particular contact with any North American automaker. However, he ruled out any further talks with General Motors, which spurned Ghosn's offer of an alliance last year.
The Renault/Nissan alliance is built on mutual consent: "GM's management has made it clear it isn't interested," he said.
Ghosn, however, also emphasized that he had no contact with Cerberus Capital Management, the new owners of Chrysler LLC, or with the Ford family, which owns the controlling shares of the Ford Motor Co.
"I've had no contacts. I'm not looking for anything particular today," he said. "If you go for a strategy of a third partner, (we) have to make sure your house in order," added Ghosn, who noted Nissan's sales and profits had slipped in 2006.
Meanwhile, Renault also about to launch new products "after two years of suffering," he said. "Now the product offensive starts. You have to give (Renault) some time," he said.
Ghosn also said Renault/Nissan was serious about pursuing the development of a car that could sell in India for $3000. The $3000 car, however, won't be engineered in Europe or Japan .
"I'm unable to get the $3000 car out of France or Japan ," he said.
The better solution is use talent in India to design the project, which is the way Renault/Nissan is developing a partnership with Bajaj, an Indian manufacturer of motorcycles and three-wheeled vehicles.
"You have to go to somebody who see the $3000 car as a challenge and frankly Bajaj is perfect because they make tricycles and motorcycles and the cost of these vehicles is a lot less. A $3000 car is at the top of the range," he said. "You don't put anything in the car that isn't basically needed by the customer," he said.
"The question mark is, [is] this something that's going to be significantly shaped for the Indian situation and Indian tastes or is it something you can expand to other markets?" Ghosn asked. "We don't have enough data to say. But at a certain point of time, we will have the information," added Ghosn, who said one solution might be to add equipment and material that would make the vehicle appealing to customers in North America, Europe, or other parts of Asia.
Ghosn, whose predictions earlier this year about car sales in the U.S. have proven very accurate, said he didn't expect car sales to grow in North America in 2008. "I think it's going to be a tough year," added Ghosn, who noted the U.S economy is still being undermined by the subprime turmoil and the stalled housing market.
Ghosn said that he was prepared to see U.S. car sales fall to the 15.5 million-unit sales level.
"I think at the best, it will be about the same as this year," Ghosn said. "Remember, though, 15.5 million to 16 million units isn't a disaster. Fortunately our pipeline is full," he said.
;)
