YOKOHAMA-- Carlos Ghosn, chief executive of the Renault-Nissan
Alliance, offered a spirited defense of global auto-making
partnerships like the French-Japanese tie-up, which has been roiled
by the French government's move last month to increase its
influence at Renault.
"We are at least a 16-year-old living example of a successful
alliance where two companies which are autonomous and independent
are working together, developing synergies," Mr. Ghosn said
Wednesday.
Mr. Ghosn, who also serves as chief executive of Renault SA and
Nissan Motor Co., spoke at a briefing where the Japanese car maker
reported a modest increase in net profit during the latest quarter.
The company was bolstered by strong sales in North America but was
held back by weakness in Japan, Brazil and Russia.
Nissan and Renault have worked together since 1999, when the
French company rescued Nissan from near collapse. In April, the
French government, which owns a stake in Renault, prevailed in a
bid to secure double voting rights for long-term shareholders, over
the objections of Mr. Ghosn.
The move has prompted speculation that Nissan might seek to
alter the terms of the partnership. Nissan now sells roughly twice
as many cars as Renault. But it holds only a 15% nonvoting stake in
Renault, which has a 43% voting stake in Nissan.
"Nissan is a more powerful brand than Renault at the moment,"
said Antonio Ferreira, chief executive of Mimotive, an auto
industry consulting firm. "I don't think they will just be
spectators."
Saying the French government's move had created a "very
sensitive situation," Mr. Ghosn was circumspect in his remarks.
"We're talking about the balance of the alliance, the health of
the alliance, so I'm not going to make any comment," he said. "This
is much more a Renault issue and Nissan is supporting Renault on
this issue."
But Mr. Ghosn said he expected industry consolidation to
continue. In addition to their main alliance, Nissan and Renault
have a vehicle development partnership with Daimler AG.
A number of auto makers have joined forces to work on new
technologies, such as hydrogen fuel-cell propulsion.
Toyota Motor Corp. and Mazda Motor Corp. said Wednesday that
they would form a partnership to explore collaboration on a range
of technologies. Toyota might offer its plug-in hybrid and
fuel-cell technologies in exchange for Mazda's fuel-efficient
gasoline and diesel engine technologies, a person with knowledge of
the matter said earlier.
Elsewhere in the automotive sector, Fiat Chrysler's Chief
Executive Sergio Marchionne has been calling for mergers and
further industry consolidation.
Renault and Nissan say their alliance is on track to deliver
EUR4.3 billion ($4.8 billion) in savings in 2016, up from EUR3.8
billion in 2014.
But the French government's intervention at Renault has prompted
concerns about the politicization of international partnerships,
especially when they involve shifting production--and jobs--across
borders. Renault-Nissan, for example, has said that it will begin
making Nissan Micra cars at a Renault plant in France next
year.
Meanwhile, Nissan output in Japan has shrunk to fewer than
900,000 vehicles in 2014 from about 1.5 million in 2009. Mr. Ghosn
said Nissan would lift domestic output to more than 1 million
vehicles in 2016, taking advantage of the weak yen, which lowers
the relative cost of making cars in Japan.
Mr. Ghosn said Nissan would ramp up production of Rogue
crossover sport-utility vehicles in Japan to meet growing demand in
the U.S. The company said its vehicle sales grew by 9% in the U.S.
in the financial year ended March 31, outpacing industry growth of
7%.
That helped Nissan post an 18% increase in net profit for the
year, to Yen458 billion. Growth slowed somewhat in the latest
quarter, when net profit rose by only 3.3%, to Yen118.8 billion, in
line with an average forecast of Yen119 billion from analysts
surveyed by FactSet. Quarterly sales rose 2.6% from a year earlier
to Yen3.29 trillion.
Nissan forecast a net profit of Yen485 billion in the current
fiscal year.
Mr. Ghosn said the industry was facing "headwinds" in Nissan's
domestic market, where the economy remains sluggish following an
increase in the consumption tax last year, as well as Brazil and
Russia. In Russia, he said, overall vehicle sales are expected to
fall by more than 30% this year, though Nissan expects a slightly
smaller decline.
Yoko Kubota contributed to this article.
Write to Eric Pfanner at eric.pfanner@wsj.com
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