CEO Carlos Ghosn says the auto industry is not in crisis image

Ghosn, the CEO of both France’s Renault and Japan’s Nissan, has dismissed worries that the auto industry is in crisis after the world’s sixth largest automaker (Nissan) slashed its profit outlook last week.

Nissan cut its annual net profit outlook for the year ending March 2014 by nearly 20 percent to 355 billion yen ($3.62 billion) amid an expected slowdown in its emerging market sales and quality issues involving multiple vehicle recalls. The CEO also strengthened its grasp on the automaker by announced serious management makeover.

“Frankly I don’t think the industry is in a crisis because the industry will see another record year in 2013 and 2014. [The] prospect is also good,” said Ghosn.

“When car manufacturers are engaged in a very strong growth – particularly in the case of Nissan — they are a little bit vulnerable to head winds… a lot of your resources are dedicated to growing. If you have too many headwinds at the same time that you are investing a lot of money, you are more in a certain way vulnerable to readjusting your profit forecast,” he also said.

Nissan is aiming to raise its global market share to 8 percent by the end of March 2017 from last year’s 6.2 percent and has been boosting efforts to build capacity worldwide. It is constructing eight new plants and expanding a factory in Russia.

The CEO also weighed in on the surprise rate cut by the European Central Bank cut on Thursday, saying he thought the cut would help improve the environment for companies and entrepreneurs in Europe on a broader scale, but added that he had doubts it would help automakers directly.

Via CNBC