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Ghosn Foresees Industry Consolidation on Global Scale

The Renault-Nissan CEO wants it to be known that he, not Chrysler and Fiat chief Sergio Marchionne, first promoted consolidation.

DETROIT – The auto industry will consolidate globally, not just in troubled Europe, as a means of survival, Renault-Nissan Alliance CEO Carlos Ghosn says at the Automotive News World Congress.

“Certain things would have been unthinkable five years ago,” he says of Renault-Nissan’s and other auto makers’ partnerships in a speech.

However, Ghosn says here Nissan and Renault, with 8 million units sold last year, have enough scale to avoid a merger or acquisiton.

Later, in a scrum with media, Ghosn wants it to be known that he, not Chrysler and Fiat chief Sergio Marchionne, first promoted consolidation.

“I always said, ‘I was the first one to tell you we are having more consolidation,’” Ghosn says. “I just want to claim the paternity of some of the ideas.”

Nissan on Sunday announced the expansion of its pact with Daimler, in which the Japanese auto maker will build Daimler 4-cyl. gas engines at its plant in Decherd, TN. The engines are destined for Mercedes-Benz C-Class models built in Tuscaloosa, AL, and possibly the upcoming compact car from Nissan’s Infiniti luxury brand, based on the Etherea concept.

Ghosn says neither Nissan nor Renault is discussing European collaboration with Fiat. But he reiterates comments in his speech that he is willing to partner with any OEM, so long as it is beneficial.

“I don’t want to give you the impression we don’t talk to X or Y or Z,” Ghosn says in the scrum. “We talk to anybody if it makes sense.”

Ghosn’s overall outlook for the global auto industry in 2012 is rosy. He expects growth in virtually every major market save for Europe, due to the region’s debt crisis.

Nissan this year will begin building a plant in Brazil that will produce small cars when it comes online in 2014. Brazil is the last of the so-called BRIC countries to get a Nissan plant, following China, Russia and India.

Looking beyond those emerging markets, Ghosn sees opportunities for Nissan in Indonesia, Thailand and Africa. He told media earlier that vehicles engineered for India would be a natural fit for the African market as well.

The charismatic CEO is in a chipper if not combative mood, telling the World Congress audience that critics of the Nissan Leaf and electric vehicles like it are the same people who dismissed cell phones.

“When the cellular phone started, it was 4.4 lbs. (2 kg) of weight; you had eight hours of charge for 20 minutes of phone; that’s the way it started. People said it’s not going to work,” Ghosn says to applause.

Ghosn also takes issue with Nissan being called “lucky” to withstand the aftereffects of the Japanese earthquake better than competitors Honda or Toyota. The CEO gets the blame when the  company falters, he says, but when it is successful it is dubbed “lucky.”

“Yes. We were lucky,” he says to more applause.

Ghosn also says he doesn’t recommend serving as CEO of two global auto makers, but “it has to be done.” His greatest fears are complacency or lack of risk-taking in his organizations.

The CEO also believes predictions of 14 million light-vehicle sales in the U.S. in 2012 are overly optimistic. He is hoping for 13.8 million units but thinks 13.5 million is more realistic.

Ghosn also says Renault will not return to the U.S. in the near future.

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