Ghosn Sees One Or Two Global Chinese Carmakers. Eventually

Bertel Schmitt
by Bertel Schmitt
ghosn sees one or two global chinese carmakers eventually

The Chinese quest to own a large Chinese automaker with global reach fell on sympathetic ears with someone who should be scared of the yellow peril: Carlos Ghosn. After all,Ghosn is in charge of two automakers. Nissan is the largest Japanese brand in China. Renault is trying to get traction in China. At the Thomson Reuters Newsmaker event in Tokyo today, Ghosn said he does not only expect one or two large Chinese automakers to emerge on the global market, he also understands why.

First, Ghosn had interesting news for those who think there is no money to be made in China:

“For carmakers, China is one of the most profitable markets in the world. It used to be the United States. Now it is China.”

Ghosn explained that Europe is by and large in the hands of European automakers. The Korean market is nearly 100% in Korean hands. Japan’s auto market is dominated by Japanese. Even “the Americans still hold a substantial market share in the United States.” Then why should the world’s largest auto market be left to the foreigners? Said Ghosn:

“When the government in China says, hey, this is a huge industry, we want to generate a Chinese champion, then that’s logical, it’s normal, we are expecting this. Is this a handicap for us? I don’t think so. It’s a factor. We are facing it everywhere.”

“We are expecting presently that there will be at least one or two global makers coming out of China .How this is going to take place, nobody knows. What is going to be the company, nobody knows. It probably will go through acquisitions of pieces of other companies outside of China, but at the end of the day it is going to happen.”

Ghosn thinks this is a while off.

“I think it is going to be some time before we see a major Chinese makers competing globally. At least five years. Unless there is an acquisition.”

Ghosn mentioned Volvo and Geely en passant, but didn’t see it as a game changer. Saab never came up. Ghosn said it needs a “volume maker.” He stressed “volume maker” several times.

When Paul Ingrassia mentioned Opel, Ghosn sidestepped the issue, and said “I’m not going to give you names.”

Through the power of YouTube, you didn’t have to travel to Tokyo to hear Ghosn uncut. The unedited, full length video on YouTube is required watching if you are interested in where this industry is heading.

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  • Athos Nobile Athos Nobile on Jun 23, 2011

    Absolutamente sin desperdicio.

  • Vance Torino Vance Torino on Jun 23, 2011

    As I see it, Opel is the real wild card here. GM is obviously and correctly ambivalent about it - its main problem being those nasty "legacy costs" associated with a very expensive European workforce. Unlike American GM's bankruptcy, they don't seem to have offloaded those costs. So GM is weighing whether a Chevrolet-based push with American and Korean engineering can make up for the loss of Opel's engineering. The moral of the story is that whoever ends up with Opel better have REALLY DEEP pockets... like a state-backed Chinese company. So... BAIC it is!

  • Nrd515 I bought an '88 S10 Blazer with the 4.3. We had it 4 years and put just about 48K on it with a bunch of trips to Nebraska and S. Dakota to see relatives. It had a couple of minor issues when new, a piece of trim fell off the first day, and it had a seriously big oil leak soon after we got it. The amazinly tiny starter failed at about 40K, it was fixed under some sort of secret warranty and we got a new Silverado as a loaner. Other than that, and a couple of tires that blew when I ran over some junk on the road, it was a rock. I hated the dash instrumentation, and being built like a gorilla, it was about an inch and a half too narrow for my giant shoulders, but it drove fine, and was my second most trouble free vehicle ever, only beaten by my '82 K5 Blazer, which had zero issues for nearly 50K miles. We sold the S10 to a friend, who had it over 20 years and over 400,000 miles on the original short block! It had a couple of transmissions, a couple of valve jobs, a rear end rebuild at 300K, was stolen and vandalized twice, cut open like a tin can when a diabetic truck driver passed out(We were all impressed at the lack of rust inside the rear quarters at almost 10 years old, and it just went on and on. Ziebart did a good job on that Blazer. All three of his sons learned to drive in it, and it was only sent to the boneyard when the area above the windshield had rusted to the point it was like taking a shower when it rained. He now has a Jeep that he's put a ton of money into. He says he misses the S10's reliablity a lot these days, the Jeep is in the shop a lot.
  • Jeff S Most densely populated areas have emission testing and removing catalytic converters and altering pollution devices will cause your vehicle to fail emission testing which could effect renewing license plates. In less populated areas where emission testing is not done there would probably not be any legal consequences and the converter could either be removed or gutted both without having to buy specific parts for bypassing emissions. Tampering with emission systems would make it harder to resell a vehicle but if you plan on keeping the vehicle and literally running it till the wheels fall off there is not much that can be done if there is no emission testing. I did have a cat removed on a car long before mandatory emission testing and it did get better mpgs and it ran better. Also had a cat gutted on my S-10 which was close to 20 years old which increased performance and efficiency but that was in a state that did not require emission testing just that reformulated gas be sold during the Summer months. I would probably not do it again because after market converters are not that expensive on older S-10s compared to many of the newer vehicles. On newer vehicles it can effect other systems that are related to the operating and the running of the vehicle. A little harder to defeat pollution devices on newer vehicles with all the systems run by microprocessors but if someone wants to do it they can. This law could be addressing the modified diesels that are made into coal rollers just as much as the gasoline powered vehicles with cats. You probably will still be able to buy equipment that would modify the performance of a vehicles as long as the emission equipment is not altered.
  • ToolGuy I wonder if Vin Diesel requires DEF.(Does he have issues with Sulfur in concentrations above 15ppm?)
  • ToolGuy Presented for discussion:
  • Kevin Ford can do what it's always done. Offer buyouts to retirement age employees, and transfers to operating facilities to those who aren't retirement age. Plus, the transition to electric isn't going to be a finger snap one time event. It's going to occur over a few model years. What's a more interesting question is: Where will today's youth find jobs in the auto industry given the lower employment levels?