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Nissan is Close to Raising Prices in Japan: CEO

Nissan Motor is close to having to raise prices in Japan amid a surge in the cost of raw materials such as steel, Carlos Ghosn, chief executive of Japan's third-largest automaker, said
on Wednesday.

CNBC.com

Nissan and other automakers are having to swallow higher prices of steel as suppliers such as Nippon Steel look to pass on the rising costs of freight, coal and iron ore.

Higher raw materials costs is a major reason Nissan and its top two rivals in Japan, Toyota Motor and Honda Motor, expect profits to fall sharply this business year.

Ghosn, who is also chief executive at top Nissan shareholder Renault, told Nissan's annual shareholders' meeting that conditions were close to the point where it would have to raise prices in the Japanese market.

Ghosn said he would consider such a move while monitoring steps by its rivals.

Shares of Nissan ended the morning session in Tokyo down 1 percent at 888 yen. The benchmark Nikkei average was down 1.5 percent.