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Renault-Nissan goes for closer cooperation, outsells VW and Toyota

PARIS — Renault-Nissan plans to double cost savings to nearly $12 billion by 2022, partly through closer cooperation with Mitsubishi, but left key questions about the automakers' alliance unresolved. Chairman Carlos Ghosn has pledged to step up the pace of integration after Nissan took a controlling stake in Mitsubishi last year. The 18-year-old Renault-Nissan pairing has only recently begun rolling out cars on common architectures. Combined sales volumes are expected to rise to 14 million vehicles by 2022 from 10.5 million expected this year, with revenue advancing by a third to $240 billion, the alliance said at a news conference in Paris on Friday. However, any investors impatient for a new capital or management structure to speed integration and prepare Ghosn's succession were likely to be disappointed. There was "no answer from Ghosn on the possibility of a merger by 2022," Jeffries analyst Philippe Houchois noted.12 NEW ALL-ELECTRICS Ghosn has been seeking a new second-in-command, sources told Reuters in June. But such plans are linked to thornier questions about the balance of power between the two main carmakers and the French government's outsize clout as Renault's biggest shareholder, supported by double voting rights. Twelve new pure-electric models will be on the road by 2022 as Renault-Nissan seeks to defend the head-start it gained with the current generation of battery cars, spearheaded by the Nissan Leaf and Renault Zoe, as more competitors join the fray. With 5.27 million cars and vans delivered in the first half of the year, Renault-Nissan now claims the mantle of the world's biggest carmaker, ahead of Volkswagen and Toyota, even though Renault has never consolidated the sales of its 43.4 percent-owned Japanese affiliate into its own. Under existing plans, the alliance is seeking to increase synergies — from cutting costs and boosting revenue — to 5.5 billion euros next year from 5 billion recorded in 2016. SHARED PLATFORMS A fourth common vehicle platform will be shared across the alliance by 2022, the companies said on Friday, underpinning a future generation of electric cars which, together with hybrids, are expected to account for 30 percent of group sales. Renault-Nissan will aim to deliver more electric vehicles and also make greater use of shared technology and manufacturing processes.

Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.

Nissan should kill the Quest and bring the Mitsubishi Delica D:5 to America

Enthusiasts don't have much reason to get excited about minivans. But if there were something cool to revitalize interest in the segment, I think American consumers would take notice. A quick browse through Mitsubishi's current catalog of global offerings turned up something interesting, and, now that Nissan has brought the diamond-star into its multi-headed global alliance, the Japanese automaker has a unique opportunity to throw caution to the wind and give America something fun. First, let's acknowledge that the Nissan Quest is a completely reasonable and current minivan entry. But it's not exactly a hot seller. The Quest was the seventh-best-selling minivan in the United States last month. The people-hauler's 209 sales in September of 2016 represent a 68-percent decline over the previous year. Granted, the Quest was trending upward for the year prior to last month's drop, but even the Quest's best full year of sales would just manage to match the number of Toyota Siennas or Chrysler Pacificas sold in a decent month. Put simply, the American market wouldn't miss the Nissan Quest if it were to disappear from dealership lots altogether. I don't think the Nissan Quest is a bad vehicle. The problem is that it's just like every other minivan sold in America. Nothing about the Quest stands out against its competitors, which basically makes it a redundant vehicle with no solid reason to exist. What Nissan really needs, in my humble opinion, is a minivan that stands out from the crowd. I offer the following solution: Bring the Mitsubishi Delica D:5 to the United States. Badge it as a Nissan to take advantage of that brand's larger dealer network; even call it the Quest Q:5 if you must. But don't change much else. I have a feeling Americans would show some interest in an eight-passenger, all-wheel-drive, multi-purpose vehicle like the Delica that's about the same overall length as the Nissan Rogue. As an added incentive to capture as many buyers as possible, offer both the 2.4-liter gasoline engine and the 2.2-liter four-cylinder turbodiesel that are available in other markets. Since the Delica D:5 is based on the same GS platform as the Dodge Journey, it could probably accommodate a Pentastar V6, too, but that doesn't really seem necessary. Instead of being a powerhouse, the Delica should be about fun and efficiency, with an adventurous off-road streak.