Ghosn: Europe's Crisis Is Overblown

DETROIT—The economic crisis in Europe prompted by Greece that has roiled stock markets internationally will be short-lived and is being "outplayed," said Carlos Ghosn, chief executive officer of both Nissan Motor Co. of Japan and Renault SA of France.

Mr. Ghosn said Tuesday at a Detroit Economic Club luncheon he doubts that Greece will leave the European Union and said the situation on the continent will settle down soon.

"I personally don't think it's going to be Armageddon," Mr. Ghosn said. "There are a lot of extremes in the thinking today. But it will come back into a much more balanced thinking."

Leaving the European Union would have major consequences both for Greece and the union and it would be very difficult for the country to re-enter, he said.

Mr. Ghosn said it natural that governments have intervened to rescue auto companies. In the U.S., the government became shareholders in both General Motors Co. and Chrysler Group LLC last year. In Europe, car companies including Renault received loans while auto makers in Japan received access to low-cost credit through the government.

"No government in the world is going to allow hundreds of thousands of jobs" to disappear, Mr. Ghosn said. "I don't think it changes the industry. We can consider it fair or unfair, but it's going to happen."

On another topic, Mr. Ghosn said Renault has no plans to resume selling its vehicles in the U.S.