Ghosn says Nissan is running below potential

After unveiling the hottest car in the world right now, Nissan’s CEO, Carlos Ghosn, says that the auto maker is performing below their potential operating margin.

“I consider that at Nissan, below 8 percent it is badly managed, above 8 percent it is well-managed. It is as simple as that,” Ghosn told a press today at the Tokyo Motor Show.

“I think the potential for Nissan is much higher than 8 percent,” Ghosn said. “We are going to keep this company in the top level for competitiveness and profitability,” he added.

Ghosn even thinks that Renault, which holds a 44 percent stake in Nissan, is running below its potential. Renault’s operating margin was 7.4 percent in 2006/2007 which Ghosn said was ‘dramatic’ even though it was better than its competitors. Ghosn.

“You don’t get to a margin of 8 percent like this,” he said, snapping his finger. “It is quite an operation.”

Ghosn said that he sees strong potential for electric cars “For downtown, urban driving I think it is going to be the main answer. For us that is obvious, but it is going to take some time,” he said.

But you might be thinking “Hey, you just revealed at gas-guzzling Godzilla! What are you talking about electric cars for?”

To people like you Ghosn says, “A carmaker cannot only have rational cars, clean and economical. It also needs passion cars.”


Source: Automotive News (Subscription Required)

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