Nissan to have an American partner
by EVANDER KLUM
Nissan of Japan and Renault of France CEO, Carlos Ghosn announced last Wednesday that he is interested in a partnership with a major American automaker but he is not very aggressive and carefully looking for one right now.
Ghosn told reporters that the Nissan-Renault team is not yet ready for expansion. The CEO sees that this is not the right time for an American partnership since Nissan Motor Co. is presently under ��consolidation�� for the automaker to step in the next level of development.
"The only partner that would make sense is somebody who is very big in North America," he said at a hotel on the sidelines of the Tokyo Motor Show. Ghosn did not name his prospect among the biggest American automakers or the so called ��Detroit��s Big Three�� made up by General Motors, Chrysler LLC and Ford Motor Co.
Because Ford and Chrysler LLC are both presently undergoing a restructuring program, both companies are looking for a partner to help them return to profitability.
Last year, Nissan already had talks with GM but the negotiations failed to create a deal. According to proponents, a deal would delay GM on its track to boost their profits. During the failed talks, GM asked for a payment from Renault SA and Nissan for what the automaker said for the unfair benefits of the team up.
Negotiation failures are common among supposed to be cross-continental alliances, the Daimler AG of Europe and Chrysler LLC of North America is a very good example and last year, between GM and Nissan-Renault. Also in 2006, Toyota Motors (producer of quality Lexus floor mats) and Ford Motor Co.��s top executives Fujio Cho and Allan Mullaly met but the meeting also did not end up in partnership.
Ghosn boasted that he is the one who made the Nissan-Renault partnership a success. Both companies are getting benefits from the collaboration.
Nissan is already on its way to bankruptcy before the alliance in 1999 but tables turned and they returned to profitability. Renault has a bigger status, size and engineering now than it was previously before the join up. The two car makers share auto parts and research.
"If you want to do more of this kind of value, you need a third partner," Ghosn said, "I still consider the strategy is right. But if we move, we must move at the moment when confidence in Nissan and Renault in terms of growth and profit is very strong."
Ghosn also announced that Nissan and Renault with a local are planning to build an inexpensive car with a tag price of $3,000 in India. Tata Motors Ltd., based in India had already made the same announcement for a car of lower cost, more or less $2,500 in its domestic market.
