Nissan Carlos Ghosn: The Importance of Success in China

"‘It is natural for joint ventures to develop independently. We will definitely support and cooperate with them,’ said Carlos Ghosn firmly. On October 25th, at the Tokyo International Auto Show, the ‘Mr. Legend’ who was in charge of Nissan’s fate and served as president of both Renault and Nissan—two of the world’s top automotive companies—expressed his stance on the joint venture’s development of its own brand. Full Support for Joint Venture Autonomy Reporter: I’m glad to see you as a very busy person. How does it feel to manage two world-class automotive companies? Is it too stressful? Ghosn: Oh, it feels good. My mission is to ensure that Nissan-Renault succeeds. These two ‘big guys’ take up a lot of my energy, but the results are still quite satisfactory. Nissan-Renault is already the second most profitable company among the world’s fourth-largest automakers and a global leader. Reporter: You once said that if you can succeed in China, you can succeed in the world. Do you think Nissan’s joint venture in China is successful? What would you rate your performance there? Ghosn: The joint venture has consistently had the highest growth rate among Chinese car companies for several years. We’ve basically met our set targets. The joint venture is operating well, with shared goals and interests, and everyone is very positive. That’s a great result. Dongfeng is a professional and rare partner. Both Dongfeng and Nissan have made significant contributions in terms of channels, networks, and customer satisfaction. I’m very satisfied with the work over the past two years. Reporter: If the Dongfeng-Nissan joint venture develops its own brand cars, would you agree? Would Nissan provide support? Ghosn: It’s normal for a joint venture to pursue independent development. We will definitely support and cooperate. As we all know, in the past two years, China’s own-brand vehicles have developed rapidly, with market share rising from 7% in 2004 to around 12% this year. That’s very encouraging. Independent brands have a strong market presence, not only in China but also in the U.S. and Japan. The key now is ensuring that joint ventures conduct proper market analysis when developing their own brands, avoiding duplicate models and overlapping market positions as much as possible. Renault’s Partner Must Be Dongfeng Reporter: Renault’s projects in China have seen ups and downs, with many rumors circulating. There were reports that Renault’s operations in China might be moved to India or elsewhere. Can you reveal Renault’s plans in China? Will it still enter the market? Who will be the partner? Ghosn: Renault will definitely enter China, and its partner must be Dongfeng. As for when Renault will officially enter, it depends on the overall preparation of the company. Our current task is to focus all resources on ensuring the maximum success of the Renault project. We will announce the specific details of the Dongfeng Renault project at the right time. Right now, the Dongfeng Renault project is still under study. China is the most promising market in the world—not just the most competitive, but also the most dynamic. Whoever succeeds in China can succeed globally. Guangzhou Auto Show Launches New Model Reporter: After its establishment in 2003, Dongfeng Nissan announced a medium-term business plan. This year is the last year of that plan, with the goal of reaching a production scale of 300,000 units. Last year, sales were about 200,000 units. That’s a big challenge. How can the joint venture ensure this target? Ghosn: We are confident in achieving this goal for two main reasons. First, the Chinese market is growing rapidly and will maintain a relatively high growth rate this year. Second, we will continue to launch new models. This year, we will present an original new SUV model at the Guangzhou Auto Show, which will help us reach the 300,000-unit target."

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