Carlos Ghosn, the CEO of Japan's Nissan Motor, has dismissed worries that the auto industry is in crisis after the world's sixth largest automaker slashed its profit outlook last week.
Nissan cut its annual net profit outlook for the year ending March 2014 by nearly 20 percent to 355 billion yen ($3.62 billion) amid an expected slowdown in its emerging market sales and quality issues involving multiple vehicle recalls.
"Frankly I don't think the industry is in a crisis because the industry will see another record year in 2013 and 2014. [The] prospect is also good," Ghosn told CNBC Thursday.
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According to Ghosn, the downgrade to Nissan's profit forecasts was a result of the company being cautious about potential headwinds it could face as it ramps up aggressive expansion plans.
"When car manufacturers are engaged in a very strong growth - particularly in the case of Nissan -- they are a little bit vulnerable to head winds... a lot of your resources are dedicated to growing. If you have too many headwinds at the same time that you are investing a lot of money, you are more in a certain way vulnerable to readjusting your profit forecast," he said.
Nissan is aiming to raise its global market share to 8 percent by the end of March 2017 from last year's 6.2 percent and has been boosting efforts to build capacity worldwide. It is constructing eight new plants and expanding a factory in Russia.
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