Nissan to make a diesel Maxima
April 18, 2007: 12:42 PM EST
Apr. 18, 2007 (AFX International Focus) --
WASHINGTON (AP) - Nissan Motor Co. (NASDAQ:NSANY) Chief Executive Carlos Ghosn said Wednesday the Japanese automaker would introduce a diesel version of the Nissan Maxima in the United States in 2010.
Ghosn, in a speech to the Council on Foreign Relations, said the vehicle would comply with emissions standards in all 50 states and provide improved fuel economy and lower carbon dioxide emissions.
'The launch of the Maxima will mark the start of a broader diesel strategy in the United States,' Ghosn said, adding the company was studying diesel vehicles in other markets.
Automakers have been turning to diesels amid projections of increased interest in the vehicles, which are popular in Europe. J.D. Power and Associates has estimated that diesels will grow from 3.6 percent of the U.S. market to about 9 percent by 2013.
Ghosn, who also serves as chief executive of Nissan's French partner, Renault SA, said the automaker was developing alternative vehicles to be 'part of the solution' as industries attempt to reduce emissions.
'It is difficult to say which technologies will prove to be the most popular among consumers, and preferences vary from one world market to another. ... When a clear market trend emerges, we will be ready to offer customers what they want,' Ghosn said.
The government has implemented tighter emissions standards for diesel engines while requiring new ultra-low sulfur diesel fuel. The fuel and clean diesel technology work in tandem to reduce emissions. In 2010, diesel engines will be required to emit about 90 percent less nitrogen oxide.
Ghosn, speaking to reporters, declined to provide a new estimate for when the automaker will meet a key sales target. Nissan said earlier this week that it may need to push back its goal of selling 4.2 million vehicles worldwide in the fiscal year ending March 2009.
Nissan, Japan's third-largest automaker, faced weakened performance last year because of a lack of new models in North America and sluggish sales in Japan.
Asked whether he was interested in seeking an alliance with DaimlerChrysler AG's (NYSE
CX) Chrysler Group, Ghosn said his two companies were focused on their own results. Ghosn unsuccessfully sought an alliance with General Motors Corp. (NYSE:BGM) (NYSE:RGM) (NYSE:GXM) (NYSE:GPM) (NYSE:GMW) (NYSE:GMS) (NYSE:GBM) (NYSE:GM) last year, and billionaire investor Kirk Kerkorian, who encouraged a Nissan-Renault-GM alliance, is among the potential buyers for Chrysler.
'You don't want to engage in anything like this if any of your stakeholders are worried about your own company. You want to make sure your company is on track for growth and profitability before envisioning something else,' he said.
'I still believe in the power of alliances. But it has to happen at the right moment, and I don't think for us it's the right moment,' Ghosn said.
