Europe auto industry’s recovery to take years, says Nissan’s Carlos Ghosn

Article by Anita Panait, on September 14, 2012

Carlos Ghosn, chief executive of Renault-Nissan, told Bloomberg in an interview that it would take many years for the auto industry in Europe to recover from dwindling demand and overcapacity.  Ghosn remarked that Nissan is "preparing for many mediocre years" in Europe. Ghosn said that despite the excess production capacity in Europe, the region "will not see any kind of Armageddon."

New-car sales in the continent has slipped to their lowest levels in 17 years, due to lower vehicle demand brought about by the current European debt crisis, rising unemployment and slowing economic growth. Business consultants AlixPartners made a forecast in August 2012 that the European auto market would not recover to pre-crisis levels until the end of the decade, as the current euro crisis and high unemployment continue to corrode consumer confidence.

According to AlixPartners, the demand for new passenger cars and light commercial vehicles in Western Europe will drop by around 1 million units in 2013 to 13.5 million, which is 3.3 million units less than pre-crisis sales figure. As for Nissan’s operations in Europe, Ghosn told Bloomberg that the carmaker will match its production capacity with demand.

Nissan’s CEO disclosed that the carmaker plans to produce over 5 million vehicles, thanks to growth in Southeast Asian countries like Myanmar, Indonesia and Vietnam, and the United States.

Ghosn said in the interview that he is hoping that the new Nissan Altima midsize sedan will take "top position" in the US, where the auto industry continues to improve. Ghosn said Nissan has been precluded from expanding its production capacity in its home market Japan due to the strong yen, as the carmaker expands its output capacity in Southeast Asia.

If you liked the article, share on:

Comments

Recommended

Volkswagen of America has a nice surprise for potential customers of the new VW Tiguan (2018 model year). The latest iteration of the Tiguan – set to arrive in the...
by - May 25, 2017
Toyota Camry is many things but exciting isn’t one of its frequent descriptions. That’s why throughout the years, Toyota has been stepping up its game for the said model in...
by - May 25, 2017
Volkswagen intends to leave the crowd in awe at the Worthersee Meeting (Wortherseetreffen) – the largest VW and Audi car show in Europe – with its new GTI Worthersee concept. ...
by - May 25, 2017
The much-hyped 2018 Dodge Challenger SRT Demon certainly has attracted a lot of attention, and possibly many potential buyers. Now, here is good news for interested customers: Dodge has finally...
by - May 25, 2017
An RHD (right hand drive) BMW M4 DTM Champion Edition has been listed to be for sale by Romans International, UK’s leading supercar dealership. The first owner of this rare...
by - May 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries