Nissan Motor Co. expects the impact of the credit crunch to last until 2010, as tighter lending drives down vehicle sales in the U.S., Nissan Chief Executive Officer Carlos Ghosn said Tuesday.
Annual sales in the U.S. will be around 12.5 million vehicles through March, he told a conference in Tokyo.
Nissan's output last month plunged 23 percent to 47,011 vehicles and its September U.S. sales declined 37 percent as falling home values and tighter credit kept car buyers out of showrooms. The automaker plans to cut domestic production at two factories by 65,000 vehicles between November and March to cope with falling demand worldwide.
"We haven't seen yet the worst," Ghosn, who is also CEO of Renault SA, said. "Even if the financial crisis stops, the consequence of the market slowdown in terms of unemployment is to come."
Chrysler LLC owner Cerberus Capital Management LP has been in talks with General Motors Corp. and Nissan on a sale, merger or alliance involving Chrysler, whose 25 percent U.S. sales decline through September is the steepest among major automakers.
"I don't think companies are going to be risking cash for a strategic move" as they don't know how long this crisis will last, Ghosn said. "Deals involving cash won't happen, particularly in the car industry."
