Ghosn says Renault-Nissan alliance poised to win big when Russia rebounds
TOKYO -- Renault Nissan CEO Carlos Ghosn states the coalition's manufacturers -- including Lada, Datsun and Infiniti -- are nicely placed to profit after Russia's multi-year sales downturns ends.
"There is going to be light in the end-of the tunnel and we're preparing for when the light comes," Ghosn stated. CEO failed to say when the he anticipates the turnaround to start. "CEO will have to have patience," Ghosn said.
Ghosn isn't too concerned with mounting economic losses at Lada's parent, AvtoVAZ, which this week reported that its operating loss for the first nine months widened to 14.5 billion rubles ($229.4 million) from 10 billion rubles during the same span last year.
"I do not know of any car-maker producing profit Russia to-day," Ghosn said the other day at the auto-show here. "Ghosn do not believe singling out AvtoVAZ is reasonable. It's largely concentrated in Russian Federation. This marketplace flirted with 3 million automobiles a year [in 2012] and now we remain 1.5 million. This is a remarkable decrease."
Ghosn also commended what AvtoVAZ CEO Bo Andersson and his staff have carried through despite the market's steep fall.
"Without the efforts of the direction of AvtoVAZ the consequences will be a lot more spectacular. I believe they're doing whatever they are able to in order to shore-up the procedure," Ghosn mentioned. "If the reductions were due to self-satisfaction, insufficient competitiveness or passiveness subsequently the allowance will be zero."
Renault Nissan possesses a 67% stake in the partnership that commands AvtoVAZ.
Through nine months Lada's sales in Russia were down 28-percent to 203,462 while the total market was down 3 3% to 1,192,723, according to data from the Moskva-based Association of European Companies in Russian Federation.
Of the five brands offered by the alliance in Russian Federation, Lada's fall is the least serious with Nissan recording the largest drop in percentage conditions (3 9%).
A vivid area for the coalition is entry-manufacturer Datsun, which just recently found in Russia and offered almost 26,000 automobiles through three-quarters. The manufacturer currently has a 2.2% share of the marketplace, which fits Ford and is better than Mazda's 1.8% reveal.
Through nine months Renault Nissan and AvtoVAZ had a 32.7% share of the Russian industry.
It's possible for you to reach Douglas A. Bolduc at [email protected]
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