Nissan pledges to focus on what’s in its control
Nissan Motor has a simple plan to navigate an unprecedented level of uncertainty around policy and regulation: focus on what’s in its control.
“The regulations are not in our control, but what is in our control is that we stay competitive cost-wise, technology-wise, product-wise,” Rakesh Kochhar, Nissan’s senior vice president of global treasury and sales finance, said at the Bloomberg Asean Business Summit in Hanoi.
The global head of Nissan’s US$ 90 billion automotive finance business said he’s confident the Yokohama, Japan-based carmaker will be able to work with any administration in a constructive manner.
Global carmakers have long benefited from open borders with everything from shipping cars to assembling them occurring across markets worldwide. That’s now under scrutiny following the election of Donald Trump, who campaigned on a promise to toughen America’s trade stance with Mexico and Japan. The president-elect has threatened a 35% tariff on any vehicles Ford Motor Co. builds in Mexico and ships back to the U.S., a levy carmakers fear he’d apply industrywide.
While Nissan wasn’t singled out on the campaign trail, the automaker is the largest producer in Mexico, and is growing. It started building cars in the country 50 years ago and produced 830,000 vehicles last year. The automaker offers products and services in more than 100 countries.
CEO Carlos Ghosn has brokered a deal with Daimler AG to jointly produce Infiniti and Mercedes luxury cars from a new Mexico plant scheduled to begin production next year.