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FCA-Renault merger faces tall odds delivering on cost-cutting promises

FRANKFURT/DETROIT — Fiat Chrysler Automobiles and Renault promise huge savings from a mega-merger, but such combinations face tall odds because of the industry's long product cycles and problems translating deal blueprints into real world success, industry veterans told Reuters. BMW's 1994 purchase of Rover, and Daimler's 1998 merger with Chrysler both made sense on paper. The companies promised to hike profits by combining vehicle platforms and engine families. Both combinations proved unworkable in reality, and were unwound. Renault and Nissan, which have been in an alliance since 1999 designed to share vehicle components, have only managed to use common vehicle platforms in 35% of Nissan's products despite an original target of 70%, according to Morgan Stanley. FCA and Renault have raised the stakes for themselves by ruling out plant closures. That increases the pressure to achieve more than $5 billion in promised annual savings from pooling procurement and research investments. The two companies have yet to fill in many of the blanks in the merger plan put forward by Fiat Chrysler. Renault's board is expected to act soon to accept the proposal, but that would lead only to a memorandum of understanding to pursue detailed operational and financial plans. A final deal and the legal combination of the two companies could take months to complete if all goes well. Pressure to cut automotive pollution is driving the latest round of consolidation. Automakers are looking at multibillion-dollar bills to develop electric and hybrid cars and cleaner internal combustion engines. Fiat Chrysler and Renault are betting they can design common electric vehicle systems, then sell more of them through their respective brands and dealer networks, cutting the cost per car. Developing all-new electric vehicles can bring more opportunities to share costs from the outset, industry experts said. "With the emergence of connected, autonomous, electric and shared vehicles, carmakers face immediate investments, so new opportunities for sharing costs have emerged," said Elmar Kades, managing director at Alix Partners. However, most electric vehicles lose money. This is a challenge for city car brands in Europe in particular. Both Renault and Fiat rely heavily on this segment for sales.

Watch Carlos Ghosn's news conference live from Beirut

The former head of Nissan-Renault says he's speaking out to clear his name and shed light on an unjust system of Japanese justice. Timeline: The rise, fall and flight of Carlos Ghosn Follow our Adam Morath, who has been maintaining a running summary on Twitter:   This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Government/Legal Nissan Renault Carlos Ghosn

Bug-eyed next-gen Nissan Titan spied testing

It's no secret that the fullsize pickup truck market is dominated by offerings from Detroit's Big Three automakers, the Nissan Titan and Toyota Tundra not able to outdo the Ford F-150, Ram 1500 or Chevy Silverado/GMC Sierra twins. A great deal of that has to do with the fact that, while the American trucks have all undergone evolutionary updates that include a range of body styles, fuel-efficient engines and excellent technology, the Japanese offerings are, well, really old. Toyota is offering an updated Tundra for the 2014 model year, and while we haven't driven it yet, we're already betting that it's still behind the pack in terms of competitiveness - the 2013 model placed fifth out of sixth in a recent PickupTrucks.com comparison test.
At the bottom of the pack lies the Nissan Titan, a truck that hasn't received any sort of substantial update since its introduction nearly ten years ago. But that's going to change - a new truck is slated to debut for the 2015 model year, and these spy shots of a Titan mule clearly show that things are moving forward.
While this tester relies heavily on the current truck's bodywork for testing purposes, the new Titan will have a revised design, some of which is evidenced by the bug-eyed front fascia of this mule. No, the production model isn't going to look all weird (we hope), but the higher, more outboard headlight placement suggests that the new truck will be a bit wider than the current model.