The automotive industry has experienced unprecedented changes in the past few decades, including America’s GM giving up its top spot in favor of Japan’s Toyota and then sliding into third place two years ago as Germany’s Volkswagen AG soared.
Now the largest US automaker – which has ruled unchallenged for decades atop the global auto industry – faces yet another challenger, the French-Japanese Renault Nissan alliance led by bullish chief executive officer Carlos Ghosn. The group has a seven-brand strength and the CEO remains confident it would succeed in becoming one of the top three world automakers by 2018. Even as the global markets are in turmoil – with places such as Russia, Brazil or other emerging markets becoming risky bets – Ghosn believes the alliance will rise from its current fourth position after finishing last year around 1.4 million autos behind General Motors’ sales figure. “A lot of things can happen in three years,” comments the executive. “In the short term some of the emerging markets where we have significant capacity such as Russia are not moving in the right direction, but this will not last forever.”
According to the executive, while Russia’s economy has been severely hit by the abnormal plunge in global crude oil prices the untapped potential of the market remains and the country is known for its swift recoveries. Additionally, the same can be said about Brazil. The alliance has made significant investments in both places and also bets on India as one of the largest markets in Asia, with huge growth potential.
Via Automotive News Europe