Posted on Wednesday 30 April 2008
U.S. auto sales have been on the decline for the past 12 months and there’s no sign of a major upturn anytime soon. The market, which for years has been the world’s biggest in terms of auto sales, could soon be overtaken by Europe and possibly China and according to Renault-Nissan CEO Carlos Ghosn it “is not going to be great again.”
Speaking with BusinessWeek, Ghosn explained that the greatest potential is in the global economy, especially in markets such as China and India, while U.S. sales are likely to continue slide. Ghosn expects this year’s U.S. auto sales to fall around the 15 million mark and predicts next year’s result to be even lower.
He went on to describe that consumers in the U.S. will be continue to move towards cheaper cars with smaller engines. “The real battle going forward is to make profit on these smaller vehicles,” he explained. As for exporting low cost cars from China or India for sale in the U.S., Ghosn says no. “We have better ways of supplying North America from our plants here, and in Mexico and South America,” he revealed.
To help boost sales of its small vehicles, Nissan has partnered with Chrysler and will supply its Versa hatch to the American carmaker. At the same time, it has scaled back production of its fullsize Titan pickup and will instead source a similar model from Chrysler to fill the gap.
In the future Ghosn expects electric vehicles to be a big factor. He confirmed the launch of an electric vehicle in the U.S. by 2010 and revealed there will be a full portfolio of EVs for both Renault and Nissan. You can read the full interview with Ghosn by clicking here.
I think any prediction of the strength of the american economy should be held off for another couple years. a lot needs to be reworked in the american financial regulation and i personally believe the next president has a huge effect on the economy. I’m not a republican hater but the economy is crappy and the USA needs a democrat in office or else they’ll just guarantee themselves another 4 years (atleast) of poor economy.
Ghosn, is probably more right than wrong. Real income growth for large parts of the American population has been flat for a long time. This has been masked by the predominance of two earner households and the tapping home equity to make significant purchases. Now with inflation kicking in and the cost of daily necessities rising dramatically, new cars are an unnecessary luxury.
Over the past 10 years, half the increase in wealth, generated by the growth of the US economy as accrued to 1% of the population. This is unsustainable.
The next president and succeeding presidents are going to faced with a huge challenge in righting the economy, given the commitments that the country is going to need to live up to and the budget and trade deficits as well as the laughingly cheap dollar.
exactly. the richest americans typically gain from republican leadership, and democrats generally boister the middle class. the government needs to skim more from the top and a little less from the bottom. and work harder to get middle america back to work.
Yeah, right, and the democratic candidates who made many, many, many millions of dollars for the last few years are totally in touch with the middle class…
they are Gus, dont you see them parade in their S class MB on a sunday/saturday afternoon on PCH through Newport/Corona =P
/sarcasm
but it will take a major upheaval in the economy to have an uptick in the american car industry, china will overtake everyone, i mean, 1 billion people (most on bicycles) a cheap car, CHA CHINGGGG