Nissan's Ghosn cautions shareholders financial crisis not fully over+

YOKOHAMA, June 23 Kyodo -
Nissan Motor Co. President Carlos Ghosn told shareholders Tuesday the financial
and economic crisis that has pummeled global auto demand is not over as
complaints about the company's dismal performance poured in.

Ghosn defended Nissan's focus on zero-emission electric cars as shareholders
slammed the automaker for lagging far behind in the hybrid competition driven
by rivals like Toyota Motor Corp. and Honda Motor Co.
''The current crisis is forcing us to rebalance our long-term goals and
short-term imperatives and priorities,'' Ghosn said at Nissan's annual general
shareholders meeting in Yokohama, Kanagawa Prefecture.
''Our priority is surviving the crisis, which is not finished,'' Ghosn said,
adding a halt in declining global auto demand and a sustainable return to
profitability in net balance will be among key indicators for an end to the
crisis.
Ghosn saw the company's fortunes, hit by the recession and a stronger yen,
reverse dramatically as it plunged deeply into the red for the first time since
fiscal 1999, when he joined Nissan's management team from France's Renault SA.
''Is the worst behind us? I don't know,'' Ghosn said after the meeting attended
by 1,578 shareholders.
The results forced Japan's third-largest automaker to scrap dividend payments
for the second half of fiscal 2008 ended in March, raising angry complaints
from shareholders over what they call high executive salaries.
''I never expected that there will be no payment of the year-end dividend,''
said one male shareholder.
''I realize Nissan is suffering, but I ask for measures to be taken,'' he
added, amid applause from the audience.
''I understand your disappointment,'' Ghosn responded, adding that the company
did not foresee the ''magnitude of the brutality and speed'' of the collapse of
the global auto market.
A number of shareholders said Nissan's current woes also stemmed from its
failure to invest in hybrid technology at a time when sales are booming for
Toyota's new Prius and Honda's Insight hybrid cars.
Japan's largest automaker got 180,000 domestic orders for its third-generation
Prius gasoline-electric hybrid in just a month since its debut in mid-May.
''The focus is currently now on hybrids, but Nissan is definitely not behind in
efforts to save energy,'' Chief Operating Officer Toshiyuki Shiga said, adding
16 of Nissan's models are eligible for government tax breaks for fuel-efficient
cars.
''We understand your concerns but we have full confidence in our strategy,''
Shiga said as Ghosn called for patience until investment in electric cars bears
fruit.
Nissan plans to launch an all-electric car and an original hybrid car in fiscal
2010.
''Our EV investment is not one car innovation. It's a complete new way of
looking at our industry,'' Ghosn told reporters. ''This is the beginning of the
story. We will see after how this will unfold.''
==Kyodo