Nissan President Ghosn predicts auto price hikes in Japan

Thursday 15th May, 07:20 AM JST

TOKYO —

Nissan Motor Co President Carlos Ghosn said Wednesday he thinks vehicle price hikes would be unavoidable in Japan given soaring prices of steel and other materials. Ghosn said that material prices have continued rising for three years, adding that the auto industry as a whole cannot help but raise vehicle prices in light of economic principles.

In the United States, General Motors has lifted its vehicle prices, and others are beginning to follow, he noted.

Usually, industry leaders should play a significant role in price hikes, Ghosn said. In this regard, Nissan is unlikely to raise its prices ahead of Japanese industry giant Toyota Motor Corp, he said.

Ghosn said that Nissan did not present vehicle sales or profit targets in its business program for fiscal 2008-2012, announced on Tuesday, because the company thinks it is meaningless to adopt conservative targets that can be achieved easily.

But he said that it would be reasonable for Nissan to aim to boost its global vehicle sales by 5% each year, thus signaling the company’s hope to achieve sales of five million units in fiscal 2012.

JCN

5 Comments

presto345 at 07:25 PM JST - 15th May

Rising prices will be no surprise and it will prompt car owners to keep their present vehicles a little longer than before.
GrouchyGaijin at 09:38 PM JST - 15th May

Or buy "Kei" cars, the only growing segment. At 47Km/litre, I won't go back to white plates!
presto345 at 04:40 PM JST - 16th May

Or buy "Kei" cars, the only growing segment. At 47Km/litre, I won't go back to white plates!

Nissan does not make those vehicles, do they? The K-cars surely are economical, but they don't do much for comfort!
unscrejects at 10:28 PM JST - 16th May

Show some cobblers Ghosn. Don't buy the steel. All you and your buddies in the industry need to do is hold-out. Or unless you're paying much less than you're telling us. Sorry, but as a former insider I recall that parts and material prices were booked in three different sets of books -with the public figures being 300% above real.
unscrejects at 10:30 PM JST - 16th May

Presto345: The Kei is a deathtrap. A coffin on wheels. Even if a wheel barrow hits you head-on you're going to join the heavenly choir. A T-ball screw shot could poke a hole straight through any Kei...