Dow Jones Newswires (Rio de Janeiro) - Global auto sales are poised to reach record levels in 2011 and 2012, despite uncertainties surrounding global economic growth amid the ongoing debt crisis in Europe, the chief executive of French-Japanese automotive alliance Renault-Nissan told Dow Jones Newswires.
Current orders and the sales trend already point to record sales in 2011, while 2012 is also shaping up for solid growth that should push sales to another record, Carlos Ghosn said in an interview. Ghosn serves as both chairman and CEO of France's Renault SA (RNO.FR) and Japan's Nissan Motor Co. Ltd. (7201.TO).
Emerging markets, a key area where Renault and Nissan are expanding, are leading the charge. The "usual actors" of Brazil, Russia, India and China are topping the charts, with other countries in Latin America and the Middle East also registering solid growth, Ghosn said.
The pressure point for sales comes from the world's developed economies, which have failed to rebound from the 2008 financial crisis and economic slowdown with the same vigor as emerging markets. The U.S. economy has been sluggish under the weight of a troubled housing sector, while Europe's debt troubles are also a factor.
"The only doubt about the United States is about how big growth is going to be," Ghosn said. "I don't think we're worried that the United States is going to fall into recession next year. I don't share this worry."
Japan, another key market, will be hard pressed to register lower sales next year after suffering through the damage of March's massive earthquake and tsunami, the executive added.
"The big question is Europe," Ghosn said. Renault-Nissan wasn't very optimistic about Europe's growth prospects even before the recent debt crisis, he said.
One of the important emerging markets Renault and Nissan are intent on tapping is Brazil, where Ghosn is visiting this week to announce plans to expand capacity at a Renault plant, as well as plans to build a Nissan-dedicated factory. The investments will total about $1.7 billion, people with knowledge of the companies plans told Dow Jones Newswires.
"I'm not expecting 2012 to be a year of decline" in Brazil, Ghosn said.
Brazilian auto sales are likely to expand 5% this year, slowing from last year's 12% growth, as higher taxes and rising interest rates cooled consumer spending. Brazil's central bank raised interest rates in five consecutive moves to start 2011 amid a surge in commodities prices that caused inflation to jump above 7%.
Global economic uncertainties related to Europe's troubles, however, have caused a reversal at the central bank, which surprised local financial markets with an interest rate reduction in August. Ghosn said he expects the central bank to continue cutting interest rates, which should help sustain growth.
"Obviously, the growth [in auto sales] may be a little bit more moderate because of the global environment," Ghosn said.
