It appears as if Carlos Ghosn will step down as chief executive of Renault prior to the end of his term. While he’ll likely continue serving as chairman of Renault and CEO and chairman of the Renault-Nissan-Mitsubishi Alliance, he’s planning to lighten his load with the French automaker.
Despite having renewed his contract with Renault, which runs until 2022, the 64-year-old executive previously said he’s wearing too many hats. Ghosn stated at the time that he hoped to scale back his workload before retiring. Apparently, the next step in that process involves ditching his day-to-day duties as a chief executive.
Volkswagen CEO Matthias Müller is expected to cave to shareholder and labor pressure today and ask that his management board agree to trim their bonuses by 30 percent, insider sources have told Reuters.
Will it satisfy dealers and vehicle owners stuck with depreciated rolling stock? Not. Bloody. Likely.
The request, if it comes to pass, comes after workers unions and the state of Lower Saxony (Volkswagen’s home and its second-largest shareholder) protested the idea of senior management receiving full compensation while the diesel emissions scandal continues to rage.
No-haggle pricing! It’s kind of the zombie of the auto industry. How, you ask? Well:
- Touching it makes your dealership sick
- It periodically comes back from the dead
- The nerd/geek crowd loves to talk about it
- It doesn’t actually exist
It’s also typically something that’s embraced by losers, whether the “loser” in question is a troubled dealership trying to remake its image after a complete decapitation of the leadership/ownership, a troubled brand trying to differentiate itself ( Scion), or a troubled automaker clutching at straws in the face of overwhelming competition (General Motors, with Saturn). But Lexus, the latest brand to give it a shot, doesn’t know the meaning of the word “loser”. Its lineup is bulletproof, both in terms of durability and customer perception. Its dealers are obscenely profitable and generally immune to the worst of the customer-abuse excesses for which mainline Toyota stores are justifiably famous.
So why jump on a strategy that has never, ever worked for any brand that doesn’t own the majority of its retail outlets? Perhaps the answer has something to do with Ellen Pao.
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- ToolGuy "which will be returned as refunds to citizens of the state" - kind of like the Alaska Permanent Fund? Make the amount high enough and I will gladly move to California to take advantage (my family came close to moving there when I was a teen, and oodles of people have moved from CA to my state, so I'm happy to return the favor).Note to California: You probably do not want me as a citizen.
- ToolGuy Nice torque figure.
- ToolGuy Pretty cool.
- ToolGuy While Americans sit around griping about emissions from container ships, check out what the French have been up to: https://www.freightwaves.com/news/largest-lng-powered-container-ship-making-maiden-voyage
- 28-Cars-Later "I was thinking that service shops were the real cash magnets for the dealers not car sales."You are correct, service and used cars made the majority of dealer profit.