Blog of RENAULT NISSAN Alliance

On Tuesday, Carlos Ghosn spoke at the Detroit Economic Club. In a moderated Q&A with Dan Howes from The Detroit News, Ghosn covered three broad themes: the consolidation trends driving the industry, the shift towards sustainable (zero emission) mobility and the opportunities presented by emerging markets.

On consolidation, Ghosn spoke about the major forces that are creating the next wave of tie-ups among the automakers. First, if manufacturers are to develop the vast and complex range of technologies that are required to be legally compliant (emission regulations etc) and be appealing to consumers, footing that investment bill across the largest scale will inevitably drive competitiveness.

Second, the recent downturn showed that manufacturers need to be present in as many segments and in as many markets as possible. Again, taking advantage of scale to help drive down investment costs while still delivering the right brand attributes will enable manufacturers to deliver on both axis.

It is these forces, Ghosn argued, that are driving this new era of industry consolidation that will see many more automakers creating partnerships and sharing investment costs in the future.