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| Nissan: firm foothold in China |
Carlos Ghosn, Japanese motor company Nissan's president, had to be very patient. But after two years' negotiation with Dongfeng Motor Corporation's management and politicians, he finally got a foothold in China's auto industry. It didn't come cheap. For a 50% stake in China's third-largest auto company, Nissan agreed to pay $1.03 billion in cash.
It is one of the largest individual items of foreign direct investment in China, and the largest in its auto industry. Also, for the first time a foreign company has been granted permission to produce vehicles in China. But it's not just Nissan getting all the benefits. Dongfeng now has a platform to become a competitive player as part of the partnership and gain foreign experience in restructuring its 120,000-employee business.