CEO Carlos Ghosn on a Return of Datsun

Posted on 21. Mar, 2012 by in Nissan Canada

03.21.2012

, YOKOHAMA

CEO Carlos Ghosn on a Return of Datsun

Nissan CEO Carlos Ghosn speaks during a press discussion in Yokohama Wednesday, holding questions on a lapse of a Datsun brand. Watch a video and review a twin below.


CEO Carlos Ghosn:
I’m certain everybody knows that yesterday we announced a revival, a relaunch, of a Datsun code as a element to, on a one side, Infiniti, and on a other, Nissan.

This is something that has been prepared within a Power 88 devise and will be a post of charity mobility for all, creation certain that people—particularly in high expansion markets—will have an offer from a company.

A lot of people in rising markets currently are pushing motorcycles, some of them are pushing used cars, others can buy a new automobile but, in fact, it’s superannuated with really aged record and a really aged height – cars that have been there for 20 years or more. What we wish to offer is a modern, affordable car—something that people will be really happy to own, a product that is generous, giving them accurately what they want, and during an affordable price.

As we can imagine, a accepting in Indonesia has been really strong, quite as a supervision during a impulse is rising a green-car program. We deliberate a launch of a green-car program, we deliberate that this shred of a marketplace might paint adult to 40% of a destiny automobile marketplace in Indonesia.


Q1. Is a new code a risk?

CEO Ghosn: There is no risk. We customarily see an opportunity. Today, in all a markets we are present, there is a turn of cost next that we can't compete, we have no offering. The risk is to do 0 since it means that in India 40% of a marketplace escapes us, in Russia 40% of a marketplace escapes us, and what we cruise will be 40% of a Indonesian marketplace will shun us. That’s a biggest risk. The risk is to do nothing.

By holding a beginning and introducing a Datsun code we’re going to contest in a marketplace in that could not contest before and we’re going to contest strongly. We’re not entrance with superannuated product. We’re entrance with a modern, strong, appealing product underneath a code of Datsun. That’s since it’s some-more of an event than a risk.

Q2. Is a lapse of Datsun late?

CEO: Are we late? You’re never late to do a right thing. There is never a good impulse to start something. When you’re ready, we should do it. When you’re not ready, we shouldn’t. So we don’t cruise we’re late. On a contrary, we cruise we’re a vital automobile manufacturer who is looking during entry-level products and saying, “I can play a role,” and, as we know, a goal is not customarily tolerable mobility though mobility for all.

By holding this beginning of substantiating a Datsun code and rising products, we’re going to be appealing to people who would adore to possess a automobile though can't means it.

And quite what we wish is a product we are unapproachable of—a product that is reliable, good quality, generous, modern. Not an superannuated car, though something complicated that people will buy.

Q3. Where do ultra low-cost cars fit in with a skeleton for Datsun to return?

CEO: Where will a ultra low-cost automobile fit? Well, a ultra low-cost automobile will fit with a Datsun brand. You can't assume a Datsun code is for that, though a day we come with a ultra low-cost automobile it will go inside a Datsun brand.

Q4. It’s customarily dual years to 2014. How distant along is a expansion of cars for a new brand?

CEO: Two years is a really brief time to come with a totally new brand? Not during all. We’ve been operative on it. We can work on things though articulate about them. We’re not announcing something and afterwards saying, “Tomorrow, we’re going to start work on a Datsun brand.” What we’re announcing currently is, “We’ve been operative on this.” The cars are already in development. Fortunately, we can still warn we with what we’re doing. It’s not like now we’re going to start work—we have already sketches, models, we know accurately what we’re doing. We’re announcing currently in a center of a work-in-progress.

Q5. Why go behind to a Datsun code instead of formulating a new one?

CEO: Datsun is partial of a birthright of a company. Why do we wish to do something new if we can use a birthright of Nissan, that is long. Datsun is a good name. Datsun is partial of a story of Nissan and Datsun has been partial of a strength of Nissan. A complicated Datsun, a regenerated Datsun, a Datsun of a 21st century compared with a Datsun of a 20th century. But we cruise it’s partial of a birthright and we wish to make it strong. This name belongs to us and Datsun was famous for a product, that was robust, arguable and affordable. These are good attributes, though we’re not going to be limited. We’re going to supplement to it peculiarity and we’re going to supplement to it modernity.

Q6. Does it matter that Datsun isn’t good famous in some of a aim high-growth markets?

CEO: That’s okay. It’s fine. If in some marketplace there is no approval when starting with Datsun or another brand, afterwards it’s a same. But during slightest in a markets where there is recognition, we’re starting with something

We announced that we’re going to be positioning a Datsun code in Indonesia, India and Russia, though this is a initial step. Obviously a Datsun code will turn tellurian sold to high-growth countries, though we’re going to go by priorities. Our priorities for a impulse are India, Indonesia and Russia.

Q7. How will a cars be tailored for opposite markets?

CEO: Datsun is going to be a tellurian code with a internal product. Market by marketplace we’re going to be intensely useful and fit a product to a marketplace since any marketplace has a possess regulations. The immature module in Indonesia is really specific: we validate for a green-car module if we have an engine with a banishment that is reduction than 1.2 liters, a cost has to be next $10,000, we have to have a internal calm aloft than a certain percentage.

Every nation has a possess regulations for a affordable shred and, if we do that, you’re going to have an incentive. In a box of Indonesia, a oppulance taxation will not apply, that currently is about 10% of a cost.

We don’t wish to have a product that fits all needs since any marketplace has a possess specific incentives to inspire renouned transportation, to inspire people who are currently roving motorcycles and used cars to pierce to new cars. That’s since we’re going to really useful and shred by shred and nation we’re going to make decisions formed on a a product that we will fit to any market.

In some markets we can do it jointly with Renault, we can do it jointly with another partner of a company. But a master word is that we are here to make an offer to make certain that any singular chairman who would adore to buy a automobile can buy a car, and can buy a automobile from a company. That’s a reason for rising a Datsun brand.

We wish no some-more sections of a marketplace where there is no offer from a company, quite in a high-growth markets. This is partial of a plan to take care in a rising markets.

We are a series one Japanese code in China. We pronounced clearly that we wish to be a series one Japanese code in Russia. We clearly are also going for care in Brazil, and a positioning of a Resende plant is in it. And apparently in a southeast of Asia we would like to play totally a purpose as a heading Japanese brand.

And this is partial of a plan to occupy all a space possible, minister as most as probable to a expansion and a expansion of a rising markets.

Q8. How most will a Datsun vehicles cost?

CEO: We can't speak about a cost operation altogether since in any marketplace a taxation is going to be different. Some markets have really high taxes, in other markets there are no taxes during all. But we can tell we that a cost operation is going to be in a shred of a marketplace where customarily we don’t compete.

But again, we should not contend this is another entry-price indicate done by a automobile manufacturer. What we wish to do is a modern, affordable, arguable automobile in this shred of this market.

So apparently in Indonesia a cost operation is next $10,000, where there is no offer today. In Russia it is going to be something different. In India it is going to be something different, substantially next this turn – $4,000. So in any shred we are going to position ourselves during a turn specific to a segment.

But a design is to make certain that a chairman who currently has a motorcycle or a used automobile and wants to buy a new automobile is going to cruise Datsun. Today, we are not in a game.

Q9. Will we be stability your team-work with Bajaj in India, and when will a automobile be released?

CEO: In this shred of a marketplace we are into testing, trying, launching. That’s what we do. In India, we have many cars that we are deliberation for that cost point. Bajaj is one of them. It’s not a customarily one.

We have many other cars – a possess and grown with other companies. We have been putting on a marketplace recently a tiny pick-up lorry with Ashok Leyland, a Dost, that has been really successful. It is an intensely affordable product and holding a really good position in a market.

This is partial of a proceed to a market. We exam opposite possibilities and afterwards we launch. If a plan goes well, apparently we continue. And with Bajaj we are still evaluating a offer that they done on a four-wheeler, that is stretched from their three-wheeler. And they we will confirm after examining this probability if we will use it or not.

But this doesn’t meant that that stops a collaboration. The partnership will continue. But this is a partnership that is intensely pragmatic, formed on win-win. As we know, in India we work with many companies: Ashok Leyland, Bajaj. We might continue to work with other partners since a design is to have a strongest offer blending to a Indian market.

Q10. What is your opinion on rising oil prices and their outcome on a Japanese economy?

CEO: If we cruise that oil during $100 a tub is high, we ain’t seen 0 yet. When we launched electric cars we pronounced clearly that we are scheming for a prolonged duration of time when oil prices are going to be really high. We took as a basement for a launch of a LEAF $80 a barrel. That was in 2007. In 2010 people pronounced that it would go down, that it’s not going to work.

Today we are during $100 and Europe is not flourishing and a United States is still in liberation mode, still next a turn where it was in 2007. So when a US will be in full expansion and Europe comes behind – since it will – we don’t cruise a cost is going to sojourn during $100.

If we cruise that oil prices are costly today, we don’t. We cruise that they are going to go up, and we are prepared for this. What is holding place currently is partial of what we have foreseen and we cruise that there is some-more to come in a future.

Q11: Will we sell Datsun in Japan?

CEO: we don’t cruise that currently we have skeleton to launch Datsun in Japan or any grown country. Again, we are business people. If we see a demand, since not? But we are not formulation for it. This is for high-growth rising markets. Again, we are business people. We should never contend never, though it’s not planned.

Q12: Why are we selling Datsun cars to immature people when aged people are a ones who remember a brand?

CEO: We are not rising a Datsun name, reviving a Datsun name, counting on a fact that many people remember Datsun. Datsun is partial of a heritage. We know a brand, we know how clever this code has been in some markets. Again, for immature people, rising Datsun or some other [new] code is a same, since they don’t remember.

So since not Datsun? In markets where Datsun left a good name of reliability, robustness, we are going to be capitalizing on it. Between rising a Datsun name and a new name, Datsun is equal or better. So we are going for something belonging to a birthright of Nissan that we would like to revive.

Q13: What will a banishment of Datsun cars be?

CEO: We are going to be really pragmatic. It’s not going to be one banishment for all. In Indonesia it’s going to be 1.2 liters or lower. So, it’s going to be pragmatic.

Let’s not forget, this is going to be a automobile for consumers in high-growth markets. And this shred is really important. Today, this shred is 43% of a marketplace in India. We have 0 offerings. This shred is 42% or 43% of a marketplace in Russia. We have 0 offerings. We cruise that this shred will be 43% of a marketplace in Indonesia though currently we have no offer. We are customarily going to get into a segments of a marketplace where currently we don’t compete. We pronounced 0 – we have 0 marketplace share. Again, it is not a risk, it is an opportunity.

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