The territorial dispute between China and Japan has made Nissan’s CEO Carlos Ghosn reconsider its investments in China.
Carlos Ghosn said that future investments in the country will require careful consideration over a period of time, due to the violent protests which sparkled in China after Japan has purchased the group of disputed islands. Nissan already has several plants in China and plans to build a new one in 2014, located in Dalian.
“Certainly beyond what we have decided, before going for further decisions in China, we will be very careful in assessing how much of an impact (the political situation) has on consumers’ minds,” Nissan’s top executive said.
Nissan, Honda and Toyota, the top three automakers in Japan, cut production in China in September as sales decreased dramatically due to the violent protests. Nissan was the most affected by the plunge in sales, as China is its biggest market. The automaker’s sales dropped 35.3% to 76,066 vehicles, Totota’s sales fell 48.9% to 44.100 vehicles and Honda was down 40.5% to 33,931 units.
Last month all Japanese businesses and factories in China closed their gates or cut operations fearing their workers, plants, dealerships and stores might be the target of angry protesters.