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With Nissan dragging it down, Renault predicts a worsening year

PARIS — Renault warned revenue may decline this year, scrapping a previous goal, after first-half profit was hit by weakening car demand and an earnings collapse at alliance partner Nissan in the wake of the Carlos Ghosn scandal. Net income slumped by more than half to 970 million euros ($1.08 billion) in January-June as revenue fell 6.4% to 28.05 billion, the French carmaker said on Friday. Operating profit also dropped 13.6% to 1.65 billion euros. "Given the degradation in demand, the group now expects 2019 revenues to be close to last year's," Renault said — abandoning an earlier pledge to increase revenue before currency effects. A broad-based auto sales downturn has rattled the sector, prompting profit warnings and compounding challenges for Renault and Nissan as they struggle to turn the page on the Ghosn era. Their former alliance boss is now awaiting trial in Japan on financial misconduct charges he denies. Renault's bottom line was hit by an 826 million-euro drop in earnings from its 43.4%-owned partner. Nissan is cutting 12,500 jobs globally after an earnings collapse that it is keen to blame on Ghosn's leadership. But Renault's own performance - reflected in an operating margin that declined to 5.9% from 6.4% the year before - compares less favorably with domestic rival PSA Group. The Peugeot maker bucked the downturn with a record 8.7% profit margin unveiled on Wednesday. Alliance tensions flared after Ghosn's November arrest, worsened when Renault tried in vain to merge with Nissan then Fiat Chrysler, and may be affecting operational performance, investors fear. Citi analyst Raghav Gupta-Chaudhary flagged a lower-than-usual 258 million euros in joint purchasing savings for Renault. "We thought this would be weak in light of the well-documented difficulties with the alliance," he said. Renault blamed falling sales in France, as well as Turkey and Argentina, for a 7.7% revenue drop at its core automotive business, whose profit margin slid to 4% from 4.5%. Operating free cash flow also suffered, coming in at a negative 716 million euros as investment jumped by 742 million euros to 2.91 billion. Renault, which is counting on model launches including a new Clio mini to boost performance in the second half of 2019, nonetheless reiterated pledges to deliver positive full-year cash flow and a margin close to 6%. Renault shares were down 0.5% at 52.02 euros as of 0800 GMT in Paris, after initially falling as much as 2.7%.

Nissan Leaf all-electric taxis start pilot program in NYC [w/video]

When New York City picked the Nissan NV200 as its Taxi of Tomorrow, many were surprised that the vehicle wasn't electric, or even a hybrid for that matter. With NYC Mayor Michael Bloomberg on hand, Nissan celebrated Earth Day on Monday by unveiling a pilot program of electric taxis for the city consisting of six 2013 Nissan Leaf EVs, which the mayor referred to as the "taxi of the day after tomorrow."
This pilot program is aimed to show how EVs can operate as taxi cabs, and Mayor Bloomberg said that New York City hopes to have a third of its taxi fleet electrified by 2020. In addition to the six cars, Nissan has also provided three quick chargers around Manhattan, allowing the Leafs to get an 80-percent recharge in just 30 minutes.
According to David Yassky, commissioner of the NYC Taxi and Limousine Commission, "What we have to do now is figure out how you integrate the charging of an electric vehicle into the duty of a taxi cab."

A look inside Infiniti's variable-compression engine

We're sympathetic to anyone who had trouble understanding what's going on with Infiniti's new variable-compression engine. While we got a full tech briefing on the novel VC-Turbo back in August, the visual aids were lacking. The cutaway engine Infiniti brought to the Paris show fixes all of that. You can thank the little green and pink lines on the cutaway for making the whole idea a little more clear. Click through the gallery to see two lines – one green and one pink – that represent the different strokes allowing for different compression ratios. Remember, the compression ratio is the amount of volume in the cylinder on intake compared to the amount at the end of the compression stroke. Leave more room at the end and you lower that ratio. The length of the stroke doesn't change with this system, but where it sits along the cylinder does. Hence those two lines. The variable compression ratio allows this new turbocharged engine to maximize fuel economy when the turbo isn't needed by raising the compression ratio. It will see its first use in the next Infiniti QX50 crossover, previewed by the QX Sport Inspiration concept that's also on display in Paris, and has performance targets of 268 horsepower and 288 pound-feet of torque. After, it will migrate to other Infiniti and Nissan vehicles, with transverse front-drive-based applications first in line. Eventually, it's likely to completely replace Nissan's corporate 3.5-liter V6. We'll be poking around the engine a little more in Paris today to try and get some more info. For now, enjoy those cutaway images and those friendly little lines. Featured Gallery Infiniti VC-Turbo engine cutaway View 14 Photos Paris Motor Show Infiniti Nissan Technology Emerging Technologies engine 2016 paris motor show