Ghosn: U.S. automotive industry is in recession

According to Nissan’s CEO Carlos Ghosn, even if the U.S. is not in recession, the auto industry is.

“We are very lucid on the situation of the industry that there is a recession in the United States, at least in the car market,” Ghosn told reporters. He said that automakers are facing rising costs for iron ore, precious metals, aluminum and other materials.

Cars and light truck sales totaled 16.1 million vehicles in 2007 in the U.S., the worst year in a decade. Sales are also expected to slip further this year as well.

Ghosn, however, expressed optimism and said that the market won’t be in a recession for a long time. He said the cost of raw materials, which is increasing for the fourth straight year, must come down.

Source: Detroit News

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