>


Advertisement
Rumors
Rumor Rating Description
A rumor rated as 'speculation' is one that has no supporting information
A rumor rated as 'strong' is one where we received information from more than one source.
A rumor rated as 'fact' is one that has proven to be true
A rumor rated as 'false' is one that has proven to be false based on new information
These rumors are just that, RUMORS, and are not to be taken as 'fact' unless so noted.  Please visit our Hot News page for news.  If you have a rumor, or can supply more information about one listed here, e-mail us with as much supporting information as possible and we may post it. User Agreement and Disclaimer. Newer rumors supersede older ones of the same topic.  Go to our forums to discuss any rumor.
for your iPhone
for your iPad

2014 IndyCar Silly Season Page | 2014 F1 Silly Season Page (Coming)

Go to our forums to discuss this news
DATE News (chronologically)
09/30/08
f1
If Ghosn gets the axe, so too may Renault's F1 program  Renault SA Chief Executive Officer Carlos Ghosn needs a new blockbuster to pull Europe's worst-performing auto stock out of a nosedive and defend his reputation. He may not get it when he introduces the revamped Megane compact at the Paris Motor Show this week.

Ghosn unveils the car as key models are losing ground to Volkswagens, Peugeots and Fiats. To keep sales growing, the Boulogne-Billancourt, France-based company has relied on the low-cost Logan sedan in emerging economies, where sales are beginning to slow as the global financial crisis take hold.

``The tide's turning against them now,'' said Stuart Pearson, an analyst at Credit Suisse in London who switched his rating on Renault to ``underperform'' from ``outperform'' yesterday. ``The international markets that were Renault's strength are becoming its Achilles heel, and the new Megane isn't going to be enough to meet next year's targets.''

Renault's share of the western European market dropped to 7.7 percent in the first eight months of this year from 9.7 percent in 2005 -- when Ghosn took over -- even as it outspent rivals on model development. Two years ago, Ghosn vowed to post a 6 percent operating margin by 2009 or ``take the consequences.''

Renault's share price has plunged 54 percent this year, the worst performance in the 13-member Dow Jones Stoxx 600 Autos & Parts Index, while 12th-ranked Peugeot has dropped 49 percent. Renault rose 54 cents, or 1.2 percent, to 44.56 euros in Paris today, valuing the company at 12.7 billion euros.

Ghosn, 54, cemented his reputation as ``Le Cost Killer'' with his turnaround of Tokyo-based Nissan Motor Co., where he threatened to resign unless objectives were met. He remains CEO of Nissan, which is 44 percent-owned by Renault.

Rather than step down from Renault if he misses targets, Ghosn is likely to face pressure to relinquish his Nissan role, said analysts including Michael Tyndall of Nomura Securities.

``It's increasingly unlikely he'll deliver on his promises, so he will have to placate some mightily unhappy shareholders,'' said Tyndall, who recommends buying Renault shares. ``They need to hear from him more and see him more.''

If Renault keeps bleeding red ink and Ghosn gets the boot, don't be surprised if Renault makes a quick exit from F1.  If Alonso were smart he'd jump ship now.

Rumors Archives
2000 2001 2002 2003
2004200520062007
2008200920102011
2012201320142015

Search Rumors
Search Help

Banner 10000012