They call it the “Ghosn effect,” when referring to the boss who they worry may be stretched so thin that he cannot manage either Nissan or Renault, as well as he was able to manage one company.

Renault is a French vehicle manufacturing company that produces cars, buses, vans, trucks and tractors. The company is well known for several revolutionary designs as well as motor racing.

The Renault-Nissan alliance was the first of its kind that involves a French and a Japanese company, each of them having their own brand identity. Renault has a stake of 44.4 percent in Nissan, the Japanese company; and Nissan has 15 percent stake in Renault. Carlos Ghosn, who was the CEO of Nissan, also became the CEO of Renault in 2005.

Today, the petulant shareholders confront the CEO of Nissan-Renault as they are perturbed with the share prices going down more than 30% this year. The wonderful impact the CEO had on Nissan when he turned around the floundering Japanese company almost a decade ago when he took over, is no longer seen.

Analysts say that the sales at Renault have flattened out, with profits sliding down 7.6% last year and they do not seem to be doing any better in 2008 either. Nissan is facing a similar situation, with the stock going down by 32% from the twelve-month high on flat profits in 2007 and with poor prospects for 2008.

The shareholders and analysts attribute it to one boss trying to do too many things at the same time; the CEO has a schedule that ordinary mortals cannot survive.

Carlos Ghosn, CEO of both Renault and Nissan Motors, responds to these allegations saying, “if you look at car-company tie-ups, such as Daimler-Benz buying Chrysler or Ford Motor buying Jaguar and Land Rover, there is only one global alliance that has added value, and that is Nissan and Renault.” He also points out that the two are earning billions even in a year of recession and slow-down. (more…)

Buying a new car is exciting. Often a new vehicle is the first purchase made by young adults moving out on their own and establishing their own careers. Unfortunately, the heady smell of new car upholstery often clouds the mind of the buyer and leaves him with the car he wants and a payment he didn’t.

If you are considering buying a new car, take heed of the following to ensure you get the best deal possible and arrange a price you can live with.

Do Your Research
The average car buyer pays 11% or more less than the sticker price on a new vehicle. Of course the dealer is not going to simply offer a reduced price to every person who walks though the door. Only those who have done their homework and planned ahead can walk out of a dealership with the kind of deal that makes others envious.

Car prices shown by dealers are the Manufacturer’s Suggested Retail Price (MSRP.) MSRP is considerably higher than what the dealer paid for the car, or the invoice price. Even with the inflated fees for shipping and upgrades, car dealers stand to make a lot of money from those who are uneducated enough to pay MSRP.

Now, in certain situations, it is impossible to get a vehicle for less than MSRP. If you are ordering a specialty item or preordering a new model to try and be the first to have it, you’ll pay a pretty penny. To each his own, but if waiting a few months or a year can save you thousands, do you really have to be the first on your street with the new whatever in your driveway? (more…)