Nissan CEO: Price hikes likely in Japan

Ghosn, speaking to reporters after a shareholders meeting, said price increases were probably inevitable in Japan, following those already announced in the U.S. and Europe. He said Nissan may have to raise their prices 2 percent or 3 percent.

He predicted that all Japanese automakers would be forced to raise prices, especially as steel costs are expected to keep climbing--although it would be hard for Nissan to be the first to do so when rivals like Toyota and Honda haven't.

"In pricing, the industry has no choice," Ghosn said after addressing more than 2,000 shareholders gathered at a convention center in Yokohama, southwest of Tokyo. "At the end of the day, we are sure everyone is going to do it."

Nissan, as well as Toyota and other manufacturers, have already raised the U.S. prices of some models.

Japanese automakers, while faring better than American rivals General Motors Corp. or Ford Motor Co., are all struggling to maintain profits amid a stronger yen, higher material costs and sluggish U.S. and Japanese markets.

Earlier in the day, Ghosn sought to allay fears about the company's declining share price on Wednesday, saying the fall was due to soaring oil costs, a U.S. economic slowdown and other factors that were hurting all automakers.

Ghosn, who also serves as head of the Japanese automaker's alliance partner Renault SA, told the shareholders' meeting that a stagnant Japanese auto market and rising steel and materials costs were also to blame for the company's falling share price.

Nissan shares have fallen 37 percent over the last 18 months and 14 percent since the start of the year. On Wednesday, they inched up to 899 yen (US$8.33).

In outlining Nissan's five-year plan through 2012, Ghosn vowed that Nissan would continue to grow in the years ahead by expanding in emerging markets such as China, Russia, India and Brazil. He acknowledged, however, that the same kind of growth cannot be expected in the traditional markets of the U.S., Europe and Japan.