Saturday, November 18, 2006

Ghosn Talks Alliances in Detroit

Associated Press By TOM KRISHER 11.16.06

Ghosn predicted that the automotive business would continue to be tough in five or 10 years with new competitors entering the market.
To be successful, auto companies are going to have to appeal more to the emotions of car buyers as opposed to rationality, he said. "It's gonna require a lot of innovation, a lot of change," he said. Nissan and Renault are watching to see how the domestic Big Three deal with their high labor costs, including health care and pensions, because Asian carmakers with U.S. plants are going to have the same expenses as their work forces age, Ghosn said. "If you don't pay attention, if you don't react today, you're going to face the same problem," he said.

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