Interview: Carlos Ghosn, ceo Nissan

Q. Could you please explain the company's management changes in relation to the Arab world?

A. Frankly, as far as the Arab world is concerned, I don't know enough about it to talk about it authoritatively. The Arab world isn't a single entity. The levels of development, maturity and know-how are very different. I'm not sure that you can talk about the 'Arab world' as such. As for management, it's the same all over the world.

The problems are tied to underdevelopment, a lack of commitment or to the fact that some visions are not up to the initiatives undertaken. One, there is no shared vision of the future or, if it exists, it's not credible. Two, there needs to be a strategy. Three, a very precise plan of action is needed. Four, commitment is needed. Having said that, the company must be committed to long-term results.

Q. Japanese companies are fairly paternalistic when it comes to human resources. Do Arab businesses have the same problem?

A. There again, it's difficult for me to talk about Arab businesses because I'm not familiar with many of them, apart from a few state-run companies. But I don't think that a company can be defined by its nationality - it's essentially defined by its goals and its markets. The markets in which the company operates are what's important. There is currently a movement of capital. Part of Nissan's capital is not Japanese. But the company culture is Japanese.

Q. American companies are result-based, while in French or Japanese companies there is more a culture of consensus.

A. I don't completely agree with that statement because we are stereotyping companies by their nationalities, which I think is wrong. There are very successful companies in Japan that are not paternalistic in the slightest and businesses in the United States that are very paternalistic and don't make huge profits.

Q. Most countries have their own carmakers, but there have never been any in the Middle East or Africa. Why?

A. To have a carmaker, you have to have a fairly large amount of capital available. You can't go from owning a garage to car manufacturing these days. Also, technology and know-how are needed, and they have to be underpinned by training and several institutions. The auto industry of today has seen a drop in the number of manufacturers. There is a tendency to consolidate because there is no need for more manufacturers in the future.

Q. What will the impact of a war in Iraq and an $80 barrel of oil be on Nissan and the auto industry?

A. The risks of war or of an increase in the price of oil are things that affect everybody. By definition, that does not entail practical advantages or disadvantages, as everybody is affected in more or less the same way.

The markets will probably change considerably if there is a war in Iraq, and the number of cars sold in the world will thus tend to decrease. Generally speaking, the auto industry will be less productive in 2003 and that applies to all carmakers. I don't think that there are any carmakers that will walk out of this situation entirely unscathed. Businesses are now used to facing both hard times and better times - they have to constantly and rapidly adapt to change.

Q. Do you think that some carmakers will find themselves on the brink of bankruptcy?

A. No. I don't think this crisis will lead to bankruptcies.

Q. Industrialized countries are trying to use cars less in order to cut down on emissions and air pollution. What do you think the car of the future will be like?

A. The car will get cleaner and cleaner. There will be more and more classic combustion engines as well as more and more clean diesel engines. There will be a proliferation of new technologies with the putting into place of a classification system so that there will be less emissions of polluting gases. Then, these kinds of cars will be put on the market when their cost is acceptable to consumers. These are the parameters that will guide the strategic choices of the industry.

Q. Why did Nissan relaunch the Z Car? How has it performed?

A. It's the bestselling sports car on the American and Japanese markets. We are very satisfied with how sales of the Z Car have evolved. It was launched because we thought that it would provide an opportunity to increase our sales - and our profits as a consequence. At the same time, it's a car that will be greatly appreciated by the brand's market. A remarkable job has been done in terms of design and motorization. It responds well and is a pleasure to drive. Moreover, its price is clearly very reasonable.

Q. Have you kept your Middle Eastern side?

A. You know, it's very difficult for me to answer this question. It would be better to ask the people that know me because it's difficult for me to distinguish between my roots - Middle Eastern, Brazilian and French - which, moreover, have been mixed with my American and Japanese experience. But the people who meet me must say that I sometimes have a Middle Eastern side to me.