Ghosn Says the R-word — Out Loud
February 22, 2008

Nissan-Renault Chief Executive Carlos Ghosn told reporters in South Korea on Friday even if the United States is not in recession, its auto industry is, The Associated Press reported.

"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," said Ghosn, adding automakers face rising costs for iron ore, precious metals, aluminum and other materials. "These represent risk for the industry."

Still, he expressed optimism the market will improve. The American auto market "will not stay in recession for a long time," he said.

Earlier, Ghosn told students at Seoul's Korea University global automakers need to focus on emerging markets. During a visit to South Korea to meet local Nissan and Renault officials, Ghosn said growth in countries such as Russia, China, India and Brazil will be key. "No car manufacturer can ignore these markets," Ghosn said.

Although the U.S. and Japan markets are stagnant or worse this year, the Russian market expanded 25 percent last year, where Renault signed on as a strategic partner with Russia's AvtoVAZ. Ghosn said Russia will surpass Germany in the next two years as Europe's largest auto market. "Nobody can ignore Russia," he said

Meantime, China's percentage growth last year was just below Russia's, and India and Brazil also are growing strongly, Ghosn noted.

Posted by Michelle Krebs at 6:55 AM under Companies , Personalities | Comments (0) | digg this | Seed Newsvine