NEW YORK – In New York today, Nissan chairman and Chief Executive Officer Carlos Ghosn gave the keynote address to open the 2016 New York International Auto Show at the Jacob K. Javits Convention Center in Manhattan. In a speech ranging from the Renault-Nissan Alliance to electric vehicles and the debut Wednesday of the 2017 GT-R to the impact of new mobility technologies, the CEO put in context some of the key opportunities for all players in a “new spring” for the automobile industry. Shortly after, he held a QA session with Jason Stein, editor and publisher, Automotive News. Watch both videos below.
Keynote Address at 2016 NYIAS Opening Breakfast
(A transcript of this speech can be found below.)
QA at 2016 NYIAS Opening Breakfast
Media Roundtable
Remarks from Carlos Ghosn, Chairman CEO, Renault-Nissan Alliance, at the Press Preview Breakfast from the 2016 New York International Auto Show
Jacob K. Javits Convention Center, New York
March 23, 2016
Before we begin, I want to acknowledge that our thoughts today are with the people of Belgium after yesterday’s horrific attacks in that city – and most especially with the victims and their loved ones. The effects of such senseless acts of terrorism are felt deeply here in New York and around the world.
We’re here today to mark our industry’s rite of spring: The kick-off of the New York International Auto Show.
Our industry is fortunate to be coming off a year of growth that went well beyond what most of us were forecasting. It was also a year of solid growth for Nissan, with our U.S. sales up more than 7 percent.
In fact, Nissan was the only major brand in the United States that saw its market share grow last year, and we sold two of the Top 10 best-selling cars in the nation: the Altima and Sentra. Also, by the end of this month we expect our North American region to surpass 2 million sales in a fiscal year for the first time. We also expect to sell more than 2 million units in North America in calendar year 2016.
Not surprisingly, our growth has coincided with the “crossoverization” of the U.S. market – and there appears to be no end in sight to the remarkable growth in crossovers here and around the world.
U.S. sales of the Nissan Rogue were up more than 44 percent last year, setting a record and moving up to fourth place in the industry’s fastest-growing segment. In addition, sales of the new Nissan Murano increased more than 33 percent last year.
And, of course, we have high expectations for the all-new Titan pickup, which has been picking up “Truck of the Year” awards across the media landscape.
It’s also worth noting that Nissan has gained steadily in passenger car sales, and we are now vying for the number-two car sales spot behind Toyota.
Our sales have been boosted by the launch of the eighth-generation Nissan Maxima and by improvements throughout our business, including customer satisfaction. Just last week, the latest J.D. Power Customer Satisfaction Index showed Nissan improved more than any other automaker and now ranks sixth in the industry – ahead of our Japanese competitors.
And later this morning we’ve got some more excitement in store when we unveil the latest version of our performance champion, the Nissan GT-R, with a long list of substantial improvements.
2015 was a good year for Infiniti as well – with sales up 14 percent. That’s a trend we see continuing this year with the launch of the Infiniti QX-30 and QX-60 crossovers and Q-60 sports coupe, as well as a significant update of the Q-50 sports sedan.
Unease over ‘disruption’
So all-in-all, a strong year for Nissan and for the overall industry. And heading into spring, we see stable growth continuing this year at around 2 percent for the overall U.S. market.
Of course, if you read some of the recent commentary on our industry, you could get the impression that it’s headed into a long, stormy, uneasy winter. There’s been a lot of talk about “disruption” — about new competitors who promise a new approach to what a car can be.
Much of this unease over potential disruption has resulted from the rapid emergence of new technologies and so-called “mobility services” – all of which are competing to establish a new vision of our industry’s future. In addition, these technologies are developing at a speed unfamiliar to our industry.
Whether we’re talking about Autonomous Drive and connected vehicle technologies, ride-sharing services, or alternative propulsion technologies, the fact is, none of us knows for certain which will become mainstream.
We can make some educated guesses and calculated bets – and we have – but in the end customers will decide which technologies and business plans will survive.
So, yes, the future isn’t clear. The biggest questions revolve around how these potentially disruptive changes will come about:
- What regulatory roadblocks will emerge?
- What role will tech companies play?
- Which of our companies will succeed or fail in addressing the coming wave of change?
- And which will be able to move quickly and adapt in such a rapidly changing technological landscape?
I don’t pretend to know all the answers to these questions. But rather than fear the disruption, I believe our industry really has no choice but to embrace it.
I expect the global auto industry to see more changes in the next five years than it has in the last 20. And those changes will bring tremendous opportunities for those companies with the skills and foresight to seize them.
Rather than fear tech companies’ interest, I see this new competition as healthy for our industry. We have a lot to learn from them, and they have much to learn from us, which is quite clear considering all the automotive talent they have been hiring.
Thoughts on the future
So with that said, let me share a few thoughts on what I see on our industry’s long-term horizon.
When I last spoke at this breakfast – in 2012 – our industry was still focused on whether electric vehicles were the future. Nissan had just introduced the LEAF a year earlier and we had sold 30,000 units.
Since then, the Renault-Nissan Alliance is leading the industry with more than 300,000 EVs sold globally – not as much as we had expected, but certainly a healthy start.
More significantly, today nearly every major automaker has ambitious projects underway for new EVs and other zero-emissions vehicles. It’s clear EVs are here to stay.
The Nissan LEAF is the world’s top-selling EV by far, with more than 200,000 owners.
And that’s a position we plan to keep.
The LEAF has also become the top Nissan vehicle in customer satisfaction – tied with the GT-R.
There are several reasons to be bullish about EVs’ future:
- To deal with the threat of climate change, the world is demanding that our industry invest more in zero-emissions transportation;
- Governments around the world are imposing stricter limits on CO2 emissions … and one major response has to be electrification;
- But beyond environmental regulation, EVs just make sense.
We have already seen within the Alliance how the cost of EVs continues to go down as their economies of scale begin to inch closer to those enjoyed by the internal combustion engine.
EVs are also relatively simple machines: A battery and electric motors. They require far less service, no oil changes and they are extremely reliable.
With battery technology improving and the charging infrastructure expanding in much of the world, we are nearing the turning point where EVs will become more of a mainstream option.
There’s been another important change since I last spoke here: In 2012, no one was talking about Autonomous Drive vehicles.
In January, I visited Nissan’s Silicon Valley RD offices in California. I spent considerable time driving around the streets of Sunnyvale – hands-free and with my eyes off the road.
Autonomous Drive cars that can change lanes on their own, negotiate city streets and handle the drudgery of stop-and-go traffic are coming soon. In fact, the Renault-Nissan Alliance will launch at least 10 models with significant Autonomous Drive functionality by 2020.
Those cars will be far more connected than those on the road today. They will be a much more personal space, an extension of ourselves – just as smartphones are today.
And the EV is the perfect platform for the future of Autonomous Drive and connected vehicle technology, which will, in turn, help accelerate the adoption of EVs.
The trend toward more connected cars is also critical to meet the expectations of our future buyers, those who are just getting their driver’s licenses today.
The benefits of highly connected, Autonomous Drive cars are clear: They hold the promise of making driving far safer, less stressful, more efficient and more rewarding. And as we did with our EVs, Nissan and the Alliance will aim these future cars at the heart of the mass market – in line with our drive toward “Mobility for All.”
Conclusion
With each international auto show, more automakers are spelling out their visions and placing their bets on the future. And that’s good.
Yes, there’s a lot at stake. Yes, there is a lot of uncertainty. But this is not a time for the conservative or the cautious.
Because for those open to new ideas and new ways of doing things, the opportunities for our industry to grow and better serve society’s needs has never been greater.
The pending merger of new technologies and new business models means not only new business opportunities, but ultimately a more efficient and safer transportation system at a lower cost to society.
Three forces – electrification, Autonomous Drive and connectivity – are about to change our industry in ways we are only beginning to imagine.
To me, it feels like we’re at the dawn of a new spring in the auto industry, and I’m excited to see how this new era unfolds.
About Nissan North America
In North America, Nissan’s operations include automotive styling, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing. Nissan is dedicated to improving the environment under the Nissan Green Program and has been recognized annually by the U.S Environmental Protection Agency as an ENERGY STAR® Partner of the Year since 2010. More information on Nissan in North America and the complete line of Nissan and Infiniti vehicles can be found online at NissanUSA.com and InfinitiUSA.com, or visit the U.S. media sites NissanNews.com and InfinitiNews.com.
About Nissan Motor Co.
Nissan Motor Co., Ltd., Japan’s second-largest automotive company, is headquartered in Yokohama, Japan, and is part of the Renault-Nissan Alliance. Operating with more than 247,500 employees globally, Nissan sold 5.32 million vehicles and generated revenue of 11.38 trillion yen (USD 103.6 billion) in fiscal year 2014. Nissan delivers a comprehensive range of more than 60 models under the Nissan, Infiniti and Datsun brands. Nissan leads the world in zero-emission mobility, dominated by sales of the LEAF, the first mass-market, pure-electric vehicle. It is the best-selling EV in history. For more information on our products, services and commitment to sustainable mobility, visit our website at Nissan-Global.com/EN/.
# # #