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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.

Nissan previews Juke-R Nismo for Goodwood debut

Nissan has another trick up its sleeve. The teaser image above gives us our first peek at the Juke-R Nismo which the Japanese automaker is set to unleash at the Goodwood Festival of Speed later this month. The Japanese automaker hasn't provided much in the way of details at this early stage, but there's plenty we can infer from the nameplate. As you may recall, the original Nissan Juke-R hit the scene several years ago, packing the powertrain from the GT-R into the compact form of the Juke. The result was a monster of a little crossover that could run to 60 in three seconds flat and put most any performance-oriented SUV to shame. The addition of the Nismo name to the end would ostensibly suggest that Nissan is preparing an even more extreme version with all the muscle of the GT-R Nismo. That would give it 600 horsepower (instead of 545) and an even meaner disposition backed by even more extreme performance capabilities. Though the image is deliberately obscured, it clearly packs even more aggressive aero than the existing Juke-R. But Nissan isn't saying yet whether this will be a strict one-off or be offered for sale like its predecessor. "Using the latest technology, styling and running gear from NISMO products," Nissan promises a "supercar beating crossover". We'll have to hold on to find out more, but we won't have to wait long as it'll be unveiled at the British automotive celebration on June 25. THE NISSAN JUKE-R IS BACK – AND NOW WITH ADDED NISMO The original was the world's first supercar crossover. Now, Nissan is set to unleash its latest evolution... the Nissan Juke-R NISMO. Using the latest technology, styling and running gear from NISMO products, the supercar beating crossover will be unveiled and unleashed at Goodwood Festival of Speed (UK) on June 25th.

Ford and Lincoln design honcho leaves to head Nissan North America design

Last Friday, David Woodhouse suddenly resigned from his dual positions as Ford's director of global strategic design and director of Lincoln design. In a post not long after leaving, he praised the efforts of his former team over the past six years he headed design at Lincoln. Among other products, that crew gave us the redesigned Navigator, the Continental concept and production sedan, and the Aviator concept and production crossover. Car Design News reports Woodhouse traded Michigan for California, taking the role of VP at Nissan Design America in San Diego. He officially assumes the position July 1, and will also serve on the Japanese automaker's Global Nissan Design Management Committee. Woodhouse has spent more than 25 years in the design department, starting with BMW and work on the Mini and Range Rover brands, followed by a brief stint with Cadillac of Europe. For the past 20 years he's been with Ford, coming on board with the Ford's former luxury arm known as the Premier Automotive Group — Jaguar, Land Rover, Aston Martin, Volvo and Lincoln. He became Lincoln's design director in 2013, introducing the world to the design language labeled "quiet flight." He described the language's details as "anti-wedge body gestures, S-curves wherever possible, and an emphasis on horizontal lines at every opportunity to create leaner, longer, wider emphasis on the exteriors, and create equilibrium, balance, and calmness on the interiors." A much shorter way to describe it is: revitalized Lincolns. The U.S. luxury maker's new and overhauled products have been praised for their lines by critics and by paying customers. The brand's done so well it's hard to remember when the MKC concept was a revelation, and that goes on Woodhouse's resume, too. That's some special juju to take to Nissan, where Woodhouse will lead both Nissan and Infiniti design focused on the North American region. Nissan has a solid if uninspiring lineup that sells well here, while Infiniti, as the luxury brand, is the bigger issue. Infiniti sedans glide on the contrails of a design language more than 10 years old. The money-making crossovers and SUVs haven't made a splash in about the same time, since the long-ago FX45. Nissan's plan to update 70 percent of its lineup over the next few years and Infiniti's transition to an all-electric brand makes right now the perfect time to break into riveting designs for the street. Woodhouse replaces Taro Ueda, who moves into a global role with Nissan.