• Mar 7, 2011
Carlos Ghosn is one of the most dynamic automotive executives you'll currently find. Thanks to his turnaround of Nissan and the way he whipped Renault into shape, Ghosn can stand shoulder to shoulder with such luminaries as Lutz and Marchionne. Past success aside, Renault's investors are less than happy with the present, and they have expressed their displeasure by rejecting Ghosn's latest six-year plan for Renault.

The investors aren't happy that Renault has $20 billion tied up in Nissan, while the French automaker itself is only worth $18 billion. Markets have also noticed, and Renault shares have dropped since the announcement of the rejection. Investors feel that Renault could put less money into Nissan and instead use those funds to shore up its share price, which has fallen significantly since Ghosn assumed the Chief Executive position in 2005.

For his part, Ghosn has faith in his product-centric plans for both nameplates. "You can rewrite stories through products," says Ghosn, who takes a longer view than Renault's financial backers. Renault has a new stylistic direction and Nissan is getting attention with its Leaf electric vehicle.

Still, the long-term outlook may seem like a fairy tale when Nissan's putting heavier discounts on its cars than its competitors to move iron and Renault is facing potential consequences – at the very least a deputy spot will likely be claimed as a sacrifice for the legal troubles, if not Ghosn's position – from an espionage scandal in France. What's more, Nissan's entire success can't be pinned on the Leaf alone.

[Source: Automotive News – sub. req.]


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  • 13 Comments
      • 3 Years Ago
      If he is in trouble that upcoming convertible Murano could sink him. Seriously, I don't wish him any troubles at all but I have to scratch my head when I see that thing. WTF?
      • 3 Years Ago
      Now I'm not one of those fancy, Wall St. fatcats

      *snaps suspenders*

      But common sense would tell me that Nissan is more valuable than Renault simply because Nissan is available in one of, if not the largest automobile market in the world, the US. I would think that alone would explain the $2B difference between the two companies.
        • 3 Years Ago
        Two: Nissan is also available in China and I believe Renault is not.
      • 3 Years Ago
      I can see where the Renault shareholders feel like they aren't getting the attention Nissan is.

      It'll be interesting to see how this is rectified.
      • 3 Years Ago
      Should be this couse every Renault car I know ...ARE A TRUE PICE OF SHIIII*****TTT

      ...just saying
      • 3 Years Ago
      These guys better embrace their partnership with Nissan or they will find a new Diamler Chrysler train wreck all over again.
      This time I don`t think the parent company (Renault) will come out on top like Diamler did.
      • 3 Years Ago
      I would prefer Renault use their money to get themselves into the US market rather than invest in Nissan. I don't know very much about all of the financial dynamics that would go into and come out of that decision, but to me that would seem like a better use of their money and it would also let us get our hands on the Megane, Clio...and even the Duster(!).
        • 3 Years Ago
        Consider yourself lucky you don't have to look at Clios and Meganes daily. Unfortunately those have been top sellers in my country for years. I can stand ugly cars, but not when there's too much of them.
      • 3 Years Ago
      Ghosn knows what he's doing, hes one of the best CEOs in the industry.

      Most of Renaults recent technologies and platforms have come frome Nissan, it would make since to invest heavily in them. Nissan is also one of the fastest growing automakers, they passed up Honda in 2010.
        • 3 Years Ago
        Agreed. It's amazing how short the investors' collective memory is. Is this not the same man who saved Nissan from oblivion not so long ago, and was so popular in Japan that they even had comic books about him?
      • 3 Years Ago
      both nissan AND renault need to start making attractive cars again because their current line up is HIDEOUS.
        • 3 Years Ago
        That is exactly their problem, and has been their problem for the last oh i dunno.. 40 years and counting?

        Immediately after Ghosn took over, reliability of Nissans went down the drain.. so it is even worse.. ugly and not reliable..

        • 3 Years Ago
        Nissan's lineup has me stylistically split. On one hand, you have the polarizing Juke and Quest (the Elgrand grille is much better looking), but on the other you have the boring Altima and Sentra. Then you have the aging Armada and Titan and the beautiful GT-R, 370Z and Maxima. It's come to the point where none of Nissan's cars have a remote resemblance to one another.

        Nissan makes beautiful cars alongside hideous ones, unlike a certain Japanese manufacturer whose name rhymes with LaFonda.
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