Davos WEF
Davos WEF

Carmakers will adapt to Trump's policies: CEO of Renault-Nissan

Most carmakers will be adding capacity in the US: Renault CEO

President-elect Donald Trump has threatened to impose a border tax on cars produced outside the United States — something that could affect the auto industry given how important the U.S. market is for them.

Carmakers might be concerned with several threats from the incoming president on where they build new plants, but the chief executive officer of Renault-Nissan believes the sector will adapt to Trump's policies.

"The U.S is the second largest car market in the world … and we have to adapt to the evolution of the administration in the United States, not the other way around," Carlos Ghosn told CNBC on Wednesday.

Ghosn said that the protectionist policy had been set out and the industry is now waiting for the details.

"We will increase capacity in the years to come, and we will be waiting for the policies now … before making a decision," he said.

Chinese President Xi's statement to Davos very reassuring: Renault CEO

Trump has told the German carmaker BMW he would impose a 35 percent border tax on cars that the firm intends to build in Mexico.

According to Ghosn, "it would not be very prudent for anybody" to opt for a Mexico plant over one in the U.S., at least before the new U.S. administration announces the "specifics."

Ghosn told CNBC he has been reassuring investors not to worry about ongoing diesel investigations into Renault.

"We know exactly what we have in our engines," he said, adding however that he understands that others may need to see it for themselves.

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