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Nissan Carlos Ghosn: The Importance of Success in China
"‘It’s natural for joint ventures to develop independently. We will definitely support and cooperate with them,’ Carlos Ghosn stated clearly. At the Tokyo International Auto Show on October 25th, the man known as ‘Mr. Legend’—who played a crucial role in shaping Nissan’s future and was the president of both Renault and Nissan, two of the world’s leading automotive companies—expressed his stance on the development of the joint venture’s own brand.
Full Support for Joint Venture Autonomy
Reporter: I’m glad to see you as a very busy person. How does it feel managing two top-tier automotive companies? Is it too overwhelming?
Ghosn: Oh, it feels good. My mission is to ensure the success of Nissan-Renault. These two big companies do take up a lot of my energy, but the results are still quite satisfactory. Nissan-Renault is now the second most profitable company among the world’s fourth-largest automakers and a global leader.
Reporter: You said that if someone succeeds in China, they can succeed in the world. Do you think Nissan’s joint venture in China is successful? Can 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 running smoothly, with shared goals and interests, and everyone is very positive. That’s a great result. Dongfeng is a professional and rare partner. Together, Dongfeng and Nissan have made significant contributions to the joint venture in terms of distribution channels, networks, and customer satisfaction. I’m very satisfied with the work done over the past two years.
Reporter: If the Dongfeng-Nissan joint venture develops its own brand, would you agree? Will Nissan provide support?
Ghosn: It’s normal for a joint venture to develop independently. We will definitely support and cooperate. As we all know, in the past two years, China’s domestic brands have grown rapidly, with their market share rising from 7% in 2004 to about 12% this year. That’s very encouraging. There’s a huge market for independent brands, not only in China but also in the U.S. and Japan. The key now is ensuring that the joint venture conducts proper market analysis when developing its own brand, avoiding duplicate models and overlapping market positioning as much as possible.
Renault’s Partner Must Be Dongfeng
Reporter: Renault’s projects in China have faced ups and downs, with many rumors. There were reports that Renault’s operations in China might be moved to India or elsewhere. Can you share 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 in the East. As for when Renault will officially enter China, it depends on our overall preparations. Our current focus is to concentrate all resources to ensure the maximum success of the Renault project. We will announce the 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—it’s not only 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 final year of the plan, with the goal of reaching a production scale of 300,000 vehicles. Last year, sales were around 200,000 units. That’s a big challenge. How will 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 also present an original new SUV model at the Guangzhou Auto Show, which will help us reach the target of 300,000 units."