Nissan to take number 3 spot from Ford

[Mad_Maxima]

BusinessWeek Link

Putting Ford in the Rearview Mirror
Carlos Ghosn's repair job could make Renault-Nissan the world's No. 3 carmaker

Just about everyone in the auto industry knows that Toyota Motor Corp. (TM) is on pace to pull ahead of General Motors Corp. (GM) as the world's largest carmaker this year or next. But less noticed has been a race just down the ranking tables, where another storied U.S. giant is facing similar pressure: Ford Motor Co. (F) is on the verge of being edged out by Renault (RNSDY)-Nissan (NSANY) for the No. 3 spot globally. As Ford shrinks to projected sales of 6.3 million vehicles for 2007, the French-Japanese alliance is likely to grow to 6.4 million, according to data from Morgan Stanley (MS) and UBS (UBS).

Ford's catastrophic $12.7 billion loss in 2006, and impending production cuts this year, have shifted it into reverse, letting Renault-Nissan catch up fast. (Ford owns 33% of Mazda, which sold 1.3 million cars last year, but doesn't include those sales in its total.) Carlos Ghosn, chief executive at both Renault and Nissan, has pushed the two companies to collaborate on engineering and research and development. It's a formula that seems to be working. As Detroit has struggled, Ghosn has quietly boosted design and quality, cut costs, and attacked high-growth Asian markets.

It hasn't always been easy for Ghosn, who saved Nissan from near-bankruptcy in 1999. Last year was filled with setbacks and troublesome distractions, such as failed talks on expanding the Renault-Nissan alliance to include GM. Ghosn ordered improvements in new models, causing costly delays. But getting it right was essential, especially in the wake of earlier quality problems. All told, 2006 sales for the Renault-Nissan alliance fell 3.6% worldwide.

Now the repair work seems largely done, and both companies are poised to rebound. Nissan's U.S. third-quarter sales rose 1%, reversing a first-half slide. For the next fiscal year, Nissan's global sales will rise 7%, Standard & Poor's forecasts. That's largely thanks to the launch of nine new models, including revamped versions of high-volume cars such as the Altima, Sentra, and Infiniti G35 sedan. Renault's global sales are also expected to jump 7% this year, Morgan Stanley estimates, as the Twingo subcompact, a revamped Laguna sedan, and a minivan version of the low-cost Logan all hit the market. That should help Ghosn start delivering on his promise of 6% margins at Renault in 2009.
One Platform, Many Models

The Logan is key to Ghosn's push in emerging markets. Competitors had dismissed the $7,500 compact, built in Romania, as an underpowered, low-margin ugly duckling. Yet it went on to be a hit following its 2004 launch. Last year sales jumped to 247,000, and Ghosn aims to sell 1 million Logans worldwide by 2010, many of them in India and China. Renault also aims to produce a low-cost pickup based on the Logan for South Africa, the Middle East, and Southeast Asia. As the new models roll off the assembly line, many expect Ghosn's restructuring to start kicking in. Says David Weinstein, a professor at the French business school INSEAD: "The real dimensions of the Renault-Nissan iceberg are not yet visible."

Renault-Nissan's strategy of designing many models from one platform gives the alliance an edge. In 2008, Renault will introduce a new generation of its Megane compact family based on Nissan's Rogue and Qashai crossover SUVs. With the Megane family accounting for about half of Renault's sales and 75% of its profit, the shared platform will especially help the bottom line.

The complementary reach of Renault and Nissan lets Ghosn carry out a surprisingly powerful global strategy. Nissan is strong in Japan, China, and the U.S., while Renault is a market leader in Europe and spearheading the push into India. "As a result, they can play bigger than they are," says Morgan Stanley analyst Adam Jonas. "Their ultimate competitor is Toyota."

WOO WOOO, Nissan making me proud :tear:

[CivRacer95]

So Ford owns Mazda? Never knew that. I always wondered why I never got into Mazdas.

Ford...blech...

Sorry to Ford fans...but blech...

[BlackGT2000]

Seems like it will soon be time to buy some stock in Ford. This drop for them was actually planned. There was a major over haul of the company is still currently going on. They are replacing their entire line up of cars and their newer product is much better than it has been. I would say in the next few years things will be looking up for ford, but when things have been let go for so long they will have to expect to loose out for a while. Sorry ford, get back on your feet and things will be better.

[Mad_Maxima]

I heard they are rebadging the Ford 500 as the Ford Taurus bringing back the old name to try to bring back old customers that left.

[BlackGT2000]

Sad to say but I think that will be a dead end. I don't think the 500 is that cool of a car anyway, I think they need to offer a little more power in a car that size. Maybe if they rebadged it, equiped a lincoln LS quality interior, and put in the new 3.5 liter duratec than it would be a pretty nice car. Than again, I think they would have trouble not badging it as a lincoln at that point.

[Gotian]

who cares if ford sales drop? J/K

Rx-8 sales have dropped, only about 600 2006's were sold and im glad I want this car to be discontinued. /hijack

Seriously though, my problem with ford (actually alot of american cars) is the interior is garbage.

[Chiquae07]

yes, i dont like american interiors as well. i seriously like the older toyota and honda interiors before the new ford ones. maybe its because im not big on luxury?

i drove a new malibu the otherday. i diddnt like it all one bit. the seats sucked for me. diddnt like that gauges either. i think the reason why a lot of us auto enthusiasts dont like the 'new interiors' is because seats are bigger than before. this is of course to handle all the overweightness in this fast food society.

and why do you want the rx-8 to be discontinued?

end of hijack....




GGOOOOOO NNNIIISSSAANNNN! WOO WOO

[BlackGT2000]

Well I have to say that car interiors in general have come a long way from where they were 10-15 years ago. I can't really complain about the new Fusion's interior. I had the chance to drive one a couple of months ago and it was really a very nice car. I really don't see how a older honda interior could possibly stack up against most car interiors today. Peoples expectations are so much higher than they used to be. Everybody demands high end interiors in low end cars.

[turtlecrxsi]

I used to love imports because their interiors were so much nicer. That was 15-20 years ago though. Now adays, like already stated, people want more comfort and why not? Cars are expensive and we have to drive in them. We should be comfortable and they should be satisfying to look at and feel. I wouldn't say domestic interiors are crap though. I absolutely love the way my Jeep GC fabric seats feel. The whole interior may seem primitive in light of new vehicles, however it suits me just perfectly and serves its purpose well. I must admit though that most import cars (not low-end makes/models) still appear to have the upper-hand as far as quality, ergonomics and comfort as far as interiors go.

Oh yeah, go Nissan! The new Altima is hot!