Louis Schweitzer, chairman of Renault, reasons that his company can reach 4m cars a year which he regards as a sustainable size simply by expanding operations in such long-term growth markets as Asia, Central Europe and Latin America.

ECONOMIST: European cars: Coups and coupés | The

In 1996 Ghosn jumped to Renault, where then chief Louis Schweitzer needed his help to cut costs and reverse heavy losses.

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The French industry minister, Franck Borotra, supported the decision taken by Renault's chairman, Louis Schweitzer, but made it clear that it was the managers' responsibility, not his (the state still owns 45% of Renault).

ECONOMIST: Europe's great car war