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Nissan didn't have much say in merger talks, but it had what FCA wanted

TOKYO — Nissan wasn't consulted on the proposed merger between its alliance partner Renault and Fiat Chrysler, but the Japanese automaker's reluctance to go along may have helped bring about the surprise collapse of the talks. While Nissan Motor Co. had a weaker bargaining position from the start, with its financial performance crumbling after the arrest last year of its star executive Carlos Ghosn, it still had as its crown jewel the technology of electric vehicles and hybrids that Fiat Chrysler wanted. The board of Renault, meeting Thursday, didn't get as far as voting on the proposal, announced last week, which would have created the world's third biggest automaker, trailing only Volkswagen AG of Germany and Japan's Toyota Motor Corp. When the French government, Renault's top shareholder with a 15% stake, asked for more time to convince Nissan, Fiat Chrysler Chairman John Elkann abruptly withdrew the offer. Although analysts say reviving the talks isn't out of the question, they say trust among the players appears to have been broken. "The other companies made the mistake of underestimating Nissan's determination to say, 'No,' " said Katsuya Takeuchi, senior analyst at Mitsubishi UFJ Morgan Stanley Securities in Tokyo. The Note, an electric car with a small gas engine to charge its battery, was Japan's No. 1 selling car, the first time in 50 years that a Nissan beat Toyota and Honda. Renault and Fiat Chrysler highlighted possible synergies that come from sharing parts and research costs as the benefits of the merger. But what Fiat Chrysler lacks and really wanted was what's called in the industry "electrification technology," Takeuchi said. With emissions regulations getting stricter around the world, having such technology is crucial. Yokohama-based Nissan makes the world's best-selling electric car Leaf. Its Note, an electric car equipped with a small gas engine to charge its battery, was Japan's No. 1 selling car for the fiscal year through March, the first time in 50 years that a Nissan model beat Toyota and Honda Motor Co. for that title. Nissan is also a leader in autonomous-driving technology, another area all the automakers are trying to innovate. "Although Nissan had no say, its cautionary stance on the merger ended up being very meaningful," Takeuchi said.

Game on as Formula One fields teams for virtual eSports competition

HORLEY, England — Grand prix teams could be racing each other in the virtual world as well as the real one next season, and fighting to sign up the hottest gamer talent, as Formula One wakes to the power of eSports. Darren Cox, the man behind McLaren's "World's Fastest Gamer" competition who also saw one of his drivers win Formula One's first eSports series in Abu Dhabi last month, feels a tipping point has been reached this year. The former Nissan motorsport boss, who runs the eSPORTS+CARS virtual team, can also see the day dawning — in maybe three to five years' time — when top gamers are earning more than the lowest paid drivers on the real F1 starting grid. In a wide-ranging interview at a simulator center where his drivers train near London's Gatwick airport, Cox told Reuters that he expected Formula One teams to become involved in next year's eSports series. "If you look at what the NBA (basketball) has done ... they engaged the teams right at the beginning. So 17 of the NBA teams have got franchises for the virtual side of the sport, and there's a draft like in the real world. "So expect something like that to come out of (Formula One owners) Liberty," added Cox. "It's happening now. Those conversations are being had. "This absolutely will be a big priority for them (Liberty), and I believe they have made it clear to the teams that they will be involved, in some way. "And then I guess it's down to the teams about how involved they want to be." Kitchen porter turns champion Formula One's first eSports series was won by Brendon Leigh, an 18-year-old kitchen porter who had never previously been out of Britain. Leigh, who drives for Cox's team and emerged triumphant from 63,000 initial hopefuls, is likely to go professional. Some gamers in other arenas are already earning more than $1 million a year, and Cox said the rewards in motorsport were growing all the time. "If you go back 18 months, these guys were winning an X-box and a free subscription, not any cash. The cash has suddenly come, and I think that will ramp up," said the man who has been dubbed the "Godfather of virtual racing." Cox dismissed as irrelevant the debate about whether eSport is a sport. "It's here, it's got millions of viewers, it's got a commercial backbone that is strong. It doesn't matter if someone in sport thinks it's a sport or not. eSports don't care." He expected all the big F1 teams to end up partnering with outfits like his.

Honda may recall up to 1M vehicles for airbag issue, following Toyota's lead

It seems Toyota won't be the only one recalling the faulty Takata airbag inflators for long. Honda insiders in Japan claim that the company is getting close to announcing its own worldwide campaign that would begin before the end of June.
Unnamed sources close to Honda in Japan tell Automotive News that the company is pursuing an internal investigation into possibly affected models and is working with Takata to gather more information. They claim that it could involve even more than the 1.14 million cars worldwide that the automaker covered under the first recall for the problem in April 2013, including 561,000 vehicles in the US.
Toyota jumpstarted this process last week when it recalled over 2 million cars worldwide, including 844,277 in the US. Soon after, the National Highway Traffic Safety Administration began a preliminary evaluation into the issue following six reported incidents, and started assembling data about potentially affected models from Toyota, Honda, Mazda, Nissan, Chrysler. NHTSA also began investigating Takata itself.