Nissan's Ghosn shows willingness to fully enter China

Asian Economic News, July 23, 2001

TOKYO, July 18 Kyodo

Nissan Motor Co. President Carlos Ghosn showed willingness in a speech Wednesday to fully enter the Chinese market, as the firm is in talks with a Chinese firm for joint production of small passenger cars.

''There is no doubt in our mind (China) will be one of the highest growth markets and potentially one of the most important in the next years. So we are happy to be present in China,'' Ghosn said in an address to a business conference held in Tokyo.

The car maker is in talks with major Chinese automaker Dong Feng Automobile Co. to set up a joint venture company for production of small passenger cars in China, expecting to start in 2003 or later.

Nissan and Dong Feng have been jointly producing pickup trucks in China since 1995.

Ghosn said Prime Minister Junichiro Koizumi's structural reform would partially affect the Japanese market, but not to a serious extent.

Asked about his market outlook, Ghosn said, ''Japan is probably a wild card,'' citing the upcoming House of Councillors election on July 29 and a further worsening of the economy to follow as reform is implemented.

''Even though there will be some downtrend coming from an adjustment, I think it won't go very low, because we are already in the cycle at the relatively conservative level,'' he said.