The head of the Renault-Nissan alliance said that owning a Formula One team "is key to selling cars in emerging markets," according to Peter Campbell of the FINANCIAL TIMES. Renault-Nissan Chair/CEO Carlos Ghosn said that the high-speed racing series is a "vehicle for awareness" in countries such as India and Brazil, and defended ownership of Renault's Formula One team as a "business" decision. Renault and Nissan have an alliance under which each is "run independently but share management, manufacturing and elements of the supply chain." In a speech at the Geneva motor show on Tuesday, Ghosn described the deal as "a partnership that works." Carmakers are "seeking ways to boost sales in emerging markets amid falling margins in traditional heartlands" such as Europe and the U.S. Costs of pushing or expanding in new markets where there is little brand awareness "can be prohibitive." Ghosn said, "We now have strong presence in China, India, Brazil, Russia, Iran, Middle East. All countries where Formula One is very popular." He said that it was important to own a team "not just because we are racing lovers and we love sports cars but because it is a business." Ghosn did not emphasize "the importance of winning Formula One races." Rather he indicated that Renault's participation was enough to increase its exposure, and key to the company's drive in emerging markets "for the next five to six years" (FT, 3/1).
