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Nissan doubling in China; Not considering subscribing to GM's upcoming IPO

1K views 9 replies 7 participants last post by  44 mpg by 2010 
#1 ·
Nissan doubling in China; Not considering subscribing to GM's upcoming IPO
1:54am EDT

By Fang Yan and Alison Leung

ZHENGZHOU, China/HONG KONG, Sept 20 (Reuters) - Japan's Nissan Motor Co Ltd plans to double its production capacity in China to 1.2 million units by 2012, as it aims for a 10 percent share of the world's biggest auto market.

The new plan is 20 percent above Nissan's earlier target, underscoring the car maker's strong interest in China, which has been a major bright spot for many automakers as the global industry struggles to recover from a steep downturn.

Nissan, 44 percent held by France's Renault SA (RENA.PA: Quote, Profile, Research, Stock Buzz), runs an auto venture with Dongfeng Motor Group Co Ltd (0489.HK: Quote, Profile, Research, Stock Buzz), which on Monday announced the opening of its first sport utility vehicle (SUV) plant in the central Chinese city of Zhengzhou.

"Among the Japanese carmakers, which represent 20 percent of total sales in China, Nissan holds the number one position," Chief Executive Carlos Ghosn said at the opening ceremony for its new SUV plant.

"Still, we believe we have the potential to earn a higher market share through our partnerships with Dongfeng and Zhengzhou Nissan. Our current objective is 10 percent." said Ghosn.

Nissan is now the top-selling Japanese automaker in China, overtaking Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz), thanks to a model line-up that included small cars that met the government's tax incentives.

But it has been lagging the market's growth recently due to a shortage of production capacity, and officials have welcomed a slight slowdown in the market's sale for that reason.

Separately, Nissan-Renault has no plan to buy shares in General Motor's upcoming initial public offering, Ghosn told Reuters on the sidelines of the ceremony.

Ghosn also told reporters that Nissan was expanding its other two production bases in China.

"Our three key manufacturing bases in Zhengzhou, Huadu and Xiangfan, we will nearly double Nissan's current production capacity in China to 1.2 million vehicles by 2012," he said at the opening ceremony. "This is 200,000 more cars than we announced at our year-end results this past May."
Full text here: http://www.reuters.com/article/idUSTOE68J01R20100920
 
#3 · (Edited)
Not clear what you refer to, Stephane Dumas, seems to be quite the opposite of that ?

They're at about a 6% share and are ramping up - in an ever expanding market, for a strong attempt for 10%.


****

Some interesting links (and links to links) - like this one although VW is not accounted for - or accounted for clearly.


http://graphics.thomsonreuters.com/F/09/CN_CRSLSBYC0910.gif
 
#5 ·
You know, at this point I think it is better for the US and Canada government to keep GM, instead of sending it on the streets like a dirty prostitute.
 
#7 ·
Exactly, those idiots "outraged by government motors" will eventually talk about something else, like "those so-called dentists in the north!!", or "communism in the USSR!!", and they'll buy a Chevy again. Or if they don't come back at all, it is still fine.. GM will be profitable at 20% marketshare, with some growth with great new products.

Anyway I don't think an IPO will change that perception, but a Chinese-owned GM will surely destroy their US marketshare.
 
#10 · (Edited)
Here is my concern ...

Nissan is doubling its' capacity over the next two (2) years.

"New investments and plant expansions will boost Nissan's annual capacity in China to 1.2 million vehicles by 2012, up from the current 670,000, Nissan CEO Carlos Ghosn said."

That leaves the opportunity for Nissan China to DOUBLE their production capacity 2 or 3 more times between 2012 and 2018 ... reaching between 5 and 10 million units annually ... just from ... Nissan China ... ALONE!

That Nissan volume could potentially be more than the total US automotive market in 2018 ... unless ... something changes.


What happens to the US market when China's internal auto market saturates ... about 2017 ... becomes a "replacement rate" market ... and starts looking for markets for 50~60 plus mpg(US) combined surplus vehicle production ... say in the US, with OUR, "hopefully", 32 mpg (Monroney combined) passenger fleet average "coerced" using 2016 CAFE (after taking out the artificial benefits of "credits" and "swaps" during the real driving experience).

Be aware China already has 60 plus mpg(US) combined technology today, 2010. The question is how quickly will that technology propagate though China's auto industry.


UNLESS the Det3 US does something "outside the BOX" ... VERY QUICKLY ... the UAW and the US economy are going to have VERY SERIOUS PROBLEMS by 2018 ... even IF fuel costs do NOT INCREASE ... which they will!

Just maybe ... something to think about ... AND ... PLAN for!

What would GM's US manufacturing operations be worth under this scenario?

Does US GM become a financial clearing house for their ASIAN/EU operations?
 
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