This is the question that obsesses Japanese journalists. While presenting on Monday in Yokohama, the annual results of the manufacturer, Hiroto Saikawa, the CEO from Nissan, had to answer the interrogations of the reporters on the possible project of a merger of the Japanese group with the French Renault, with which it shares a delicate system of crossed participations. “It is not true that we are negotiating a merger,” said the boss of the Japanese brand, to respond to the concerns of some industrial elites of the archipelago who fear that the French government will try to increase its influence on the market. destiny of the Japanese manufacturer.
Following the words of Carlos Ghosn, who heads the Nissan-Renault-Mitsubishi Motors Alliance, Hiroto Saikawa acknowledged that builders are still thinking about the future shape of their capital alliance . For now, Renault owns 43.4% of Nissan, which owns 15% of Renault and 34% of Mitsubishi Motors. “We need to make sure that the Alliance will be able to operate as it does now when we hand it over to future generations and that there will be a change of leadership,” said the Japanese CEO, in a reference at the start, from here to a few years, Carlos Ghosn, the great architect of the current balance.
Debate on the capitalistic organization
While indicating that other solutions were under consideration, he indicated that the current system of cross-holdings could very well be maintained. “This organization of capital is absolutely not a topic when we talk about the concrete organization of the work of the alliance,” insisted Hiroto Saikawa, who again praised the synergies allowed through pooling, between the three manufacturers, several activities (component purchases, research, production lines …).
Despite these savings and global sales up 2.6% to 5.77 million units, Nissan saw its operating profit fall 22.6% to 574.8 billion yen (4.4 billion euros) over the last fiscal year, due in particular to the rise in the price of raw materials, an increase in its research expenses and the cost of the scandal of non-compliant inspections in its Japanese factories. Taking advantage of the US tax reform, however, Nissan has posted a net profit up 12.6% over the year, to 747 billion yen (5.7 billion euros).
A declining US market
For the fiscal year started in early April, the manufacturer anticipates a further narrowing of its operating profit by at least 6%, as well as a 33% drop in its net profit. He is particularly worried about the continued decline of the American market, where he sells nearly 30% of his vehicles. “In America, improving our profitability is going to be the priority,” said Hiroto Saikawa, before pointing to the launch of several new vehicles, such as the improved version of the new Leaf electric car, which should help limit the decline in United States and further boost sales in China. This year, this country could become the first market of the group.