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Renault-Nissan rejig how they manage Daimler partnership, sources say

PARIS — The Renault-Nissan-Mitsubishi alliance is set to scrap a role overseeing ties with Daimler in favor of individual relations with the German group, three sources told Reuters, as they try to better manage a partnership that has not met initial hopes. The shift comes as alliance-level executive Jacques Verdonck, who was in charge of the cooperation with Daimler, retires at the end of the month, the sources familiar with the matter said. France's Renault will instead rely on its head of partnerships, Sandra Gomez, while Nissan will do the same with Catherine Perez. Mitsubishi will also have a person in charge of partnerships, the sources said, adding the bilateral approach was in line with the new "leader-follower" strategy of the alliance. That involves leaning on the strengths of each carmaker in certain areas. Renault and Daimler declined to comment, while Nissan could not immediately be reached for comment. The plan marks another shift following the end of the Carlos Ghosn era at the alliance. The architect of the Franco-Japanese partnership, who also extended the collaboration to Daimler, was arrested on financial misconduct charges in Japan in late 2018, before fleeing to Lebanon in 2019. He denies any wrongdoing. His exit strained already difficult relations between Nissan and Renault, which are now working to get back on track with cost-saving joint production projects among other steps. The partnership with Daimler - which owns high-end brand Mercedes-Benz, contrasting with the more accessible models produced by the others - has also looked in danger of losing steam. Nissan and Renault, both hit by losses, recently sold down their stakes in the German group. Collaborations on Renault's compact Twingo car and Daimler's Smart model are set to end, and some targets for industrial cooperation have been downgraded over the years. But Daimler still has a factory in Mexico with Nissan, and has been exploring the possibility of jointly developing at least one large van model with Renault. An industry shift towards electric vehicles could yet yield other opportunities, one of the sources said. "The collaboration with Daimler is at present made up of Renault-Daimler projects, Nissan-Daimler ones and some between the three," another of the sources said, with yet another saying that the changes reflected a more pragmatic approach.

Nissan-Renault mule teases mysterious subcompact

There's always something intriguing about a mystery, especially of the automotive kind, and that's exactly what we have here. Our spies recently spotted this Nissan-Renault test mule on the road in Southern Europe. But what, exactly, are they testing? From the front end, it's clear this mule started life as a Nissan Versa Note, but check it out in profile to see the cut down rear doors. They're significantly shorter than on the production car, and the wheelbase isn't as long here, either. The tacked on fender flares suggest a wider track than stock, too. Making things even more complicated is the bizarre cladding this subcompact hatch is wearing. The odd tumors on the hood and blistered side panels indicate that the automaker is trying to keep the design underneath a secret. Given Renault and Nissan's tight relationship, it also isn't clear which company is testing this model. While the body comes from the Note, this one is wearing French license plates. According to our spies, the vehicle was also spotted leaving a Renault testing location. There are some possibilities, though. Renault already has the new Twingo out, and the next-gen Megane has an imminent release. The French brand could now be at work on a future Clio. Alternatively, Nissan is reportedly using the Sway concept as inspiration for the upcoming Micra, and we could be getting a preview here. Give us your best guess in Comments. Related Video:

Automakers drop support for Trump effort against California emissions

WASHINGTON — Toyota, Fiat Chrysler (now known as Stellantis following its merger with Peugeot) and other major automakers said on Tuesday they were joining General Motors in abandoning support for former President Donald Trump's effort to bar California from setting its own zero emission vehicle rules. The automakers, which also included Hyundai, Kia, Mitsubishi, Mazda and Subaru, said in a joint statement they were withdrawing from an ongoing legal challenge to California's emission-setting powers, "in a gesture of good faith and to find a constructive path forward" with President Joe Biden. The automakers, along with the National Automobile Dealers Association, said they were aligned "with the Biden administrationÂ’s goals to achieve year-over-year improvements in fuel economy standards." Nissan in December withdrew from the challenge after GM's decision in November shocked the industry and won praise from Biden. On Monday, the Justice Department asked the U.S. Appeals Court for the District of Columbia to put the California emissions litigation on hold to "ensure due respect for the prerogative of the executive branch to reconsider the policy decisions of a prior administration." Biden has directed agencies to quickly reconsider TrumpÂ’s 2019 decision to revoke CaliforniaÂ’s authority to set its own auto tailpipe emissions standards and require rising numbers of zero-emission vehicles, as well as Trump's national fuel economy rollback. Asked to respond to the automakers' action, White House climate adviser Gina McCarthy said in a statement that "after four years of putting us in reverse, it is time to restart and build a sustainable future, grow domestic manufacturing, and deliver clean cars for America." California Governor Gavin Newsom praised the automakers on Twitter for "dropping your climate-denying, air-polluting, Trump-era lawsuit against CA" and urged them to join the voluntary framework. TALKS WITH BIDEN Separately, an industry trade group on Tuesday proposed to start talks with Biden on revised fuel economy standards that would be higher than Trump-era standards but lower than ones set during the prior Democratic administration. The Trump administration in March finalized a rollback of U.S. Corporate Average Fuel Economy standards to require 1.5% annual increases in efficiency through 2026, well below the 5% yearly boosts under the Obama administration rules it discarded.