Executive-of-the-Moment Carlos Ghosn fears that Renault has been hobbled by an over-dependence on Megane sales in France-- what he calls the 'Fiat Syndrome: extreme dependence on one segment and one country.' The Megane, which has long been a top seller, has begun to falter, losing 30 percent in November. Peugeot's 1007 has been enduring soft sales.
Other contributing factors to a potentially lackluster 2006 include a home market whose growth isn't as robust as in years past, and an increase in the number of new models among French automakers, which can erode profitability even while boosting sales numbers.