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.]