Japan: Ghosn sees strong Yen and impact on Nissan profits as temporary
Friday, November 23, 2007, AutomotiveWorld.com
Nissan's chief executive, Carlos Ghosn, has told Reuters that he sees the Yen's recent strength as a short-term phenomenon. He also believes the Japanese currency will eventually stabilise at weaker levels.
"I think what you're seeing now is short-term volatility," Ghosn told reporters at a ceremony held to mark the production launch of the second generation Murano SUV.
"I think stability will return, probably not [at the levels] we are at now," he said at the plant on Kyushu in the south of Japan.
The Japanese currency has recently risen to its highest level in 36 months against the Dollar, following speculation of an impending cut in US interest rates. Though the Yen has fallen against the Euro over the course of 2007, in the same period, it has gained roughly 10% against the US currency, the newswire states.
Ghosn said Nissan did not base its long-term strategy on currency moves but acknowledged that the profitability of Japanese-made vehicles such as the Murano in the US was affected by the weaker Dollar.
"We're not very bullish on the US market next year, but we're prepared to compete," Ghosn added, repeating his expectation for a new vehicle market of between 15.5 and 16 million cars and light trucks in 2008.
Published on Friday, November 23, 2007
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