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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's crowdsourced Project Titan is ready to tackle Alaska [w/videos]

Alaska still offers Americans the chance to really experience the wilderness, and Nissan is challenging its Titan pickup to its offroad extremes with a little help from its fans. After crowdsourcing a heap of mods, the company is handing it over to two Wounded Warrior Project Alumni to do their worst in the backcountry to see what the truck can do.
Nissan last experimented with the crowdsourcing idea on its Project 370Z in 2012 but might have taken things even further this time. For Project Titan, the automaker let fans vote on 10 different areas to customize on a 2014 Titan Crew Cab PRO-4X. To fit the rugged look, the company covered it up with a custom digital-camouflage wrap with a Wounded Warrior Project emblem and even outfitted its all-terrain camping trailer in a similar scheme. An LED lighting rig was also added to the new bull bar and roof rack to brighten the night. For a just little more grunt, the 5.6-liter V8 was outfitted with a Nismo cold-air intake and Borla cat-back exhaust, and to keep from getting stuck, the pickup got an upgraded suspension with more travel and 18-inch wheels with 35-inch Nitto offroad tires. The interior was also slightly revised with big GPS system and custom embroidered seats.
Now, it's time to see if the truck's mods can handle what the Alaskan wilderness can throw at it. The two Wounded Warrior Project Alumni are just starting their expedition and are expecting snow on the way. Scroll down to watch three build videos for the Titan and read Nissan's official announcement. You can also follow their journey on Nissan Trucks' Facebook page.

Watch a pro drifter drive the Nissan Skyline with his feet

You can't let a few setbacks dissuade you from trying to achieve your goals, and that's as true in motorsports as anywhere else in life. If you want an inspiring example of someone who isn't letting adversity stand in his way, just check out professional drifter Bartosz Ostalowski. He doesn't have arms but still competes with one foot on the wheel. It would be amazing to see someone drift a car using just a foot in any setting. However, the fact that Ostalowski is able to do that during competitions makes the feat even more impressive. To make drifting possible, his car is a custom modified R34 Nissan Skyline with an automatic transmission and a LS V8 from General Motors for power. If you watch the video above, and somehow don't believe what Ostalowski does is possible, the clip shows another example of him at work. This one cuts between interior and exterior views of the same run. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.