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FCA-Renault revival may hinge on willingness to cut Nissan stake

Fiat Chrysler Automobiles and Renault are looking for ways to resuscitate their collapsed merger plan and secure the approval of the French carmaker's alliance partner Nissan, according to several sources close to the companies. Nissan is poised to urge Renault to significantly reduce its 43.4% stake in the Japanese company in return for supporting a FCA-Renault tie-up, two people with knowledge of its thinking also told Reuters. It is still far from clear whether any concerted effort to revive the complex and politically fraught deal can succeed. FCA Chairman John Elkann abruptly withdrew his $35 billion merger offer in the early hours of June 6 after the French government, Renault's biggest shareholder, blocked a vote by its board and demanded more time to win Nissan's backing. Nissan representatives had said they would abstain. The failure, which FCA and Renault blamed squarely on the French government, deprived both companies of an opportunity to create the world's third-biggest carmaker with 5 billion euros ($5.6 billion) in promised annual synergies. It also shone a harsh light on Renault's relations with Nissan, which have gone from frayed to fried since the November arrest of former alliance Chairman Carlos Ghosn, now awaiting trial in Japan on financial misconduct charges he denies. REVIVAL TALKS Italian-American FCA — whose brand stable encompasses Fiat runabouts, Jeep SUVs, RAM pickups, Alfa Romeo luxury cars and Maserati sports cars — has so far turned a deaf ear to suggestions by French officials that its merger proposal could be revisited. But since the breakdown, Elkann and his French counterpart Jean-Dominique Senard have had talks about reviving the plan that left the Renault chairman and his Chief Executive Thierry Bollore upbeat about that prospect, three alliance sources said. Renault and a spokesman for FCA declined to comment. One of Elkann's senior advisors on the Renault merger bid, Toby Myerson, was expected at Nissan headquarters in Yokohama on Monday for exploratory discussions with top management, two people with knowledge of the matter said. Nissan CEO Hiroto Saikawa is likely to attend. Myerson did not respond to a message from Reuters seeking comment. The meeting comes amid mounting strains that may preclude compromise, after Senard warned Saikawa that Renault was prepared to block key Nissan governance reforms in a dispute over board committees.

Nissan Skyline Nismo gets a more powerful Z engine

Recent rumors claim the Nissan Skyline will morph into an electric crossover in the coming years. Regardless of whether or not they're true, the company isn't done with the current, gasoline-powered Skyline yet and it launched a limited-edition, Nismo-branded model in Japan. If you're experiencing deja vu, it's likely because the Nissan Skyline is sold as the Infiniti Q50 in the United States. We even get a range-topping, performance-oriented trim level, the 400-horsepower Red Sport 400. The Skyline Nismo goes further, though, by adopting an evolution of the twin-turbocharged, 3.0-liter V6 that powers the Red Sport 400 and the Z coupe. It's rated at 414 horsepower and 404 pound-feet of torque. For context, the Q50 and Z pack 400-horsepower and just 350 pound-feet of torque. The Nismo's engine spins just the rear wheels via a seven-speed automatic transmission, whereas America's Red Sport 400 is available with all-wheel drive. Nissan didn't settle for adding a few horses to the cavalry, slapping a couple of "Nismo" emblems to the body, and calling it a job well done. Its engineers redesigned the Skyline's suspension system, installed fade-resistant brake pads and recalibrated the various vehicle control systems, including the ABS, to deliver a sportier driving experience on and off the track. The brand even went as far as securing the windshield and the rear window with a type of adhesive normally reserved for the GT-R Nismo to improve rigidity without adding weight.  Visual updates are part of the Nismo package as well, including 19-inch Enkei wheels wrapped by tires that are wider than the ones worn by the regular-production model, an old-school "GT" emblem on each fender, and a body kit that includes a front splitter and side skirts. These updates aren't just for show: Nissan notes the redesigned grille opening helps channel additional cooling air to the radiator and the oil cooler. The Nismo treatment also permeates the cabin. The front passengers sit on Recaro sport seats with red inserts, while the driver faces a steering wheel with a red 12-o'clock mark as well as a new-look tachometer with a red ring and a small "Nismo" logo below the needle. Enthusiasts who want an even rarer version of the current-generation Skyline can try their luck at scoring the Nismo Limited.

Should you buy an EV?

Gas prices are hitting the skids and EVs are following suit; nearly every model in today's market has experienced a double-digit decline in sales – with the always notable exception of the Tesla Model S. Some EVs are in the last year of their generation while others have been half-heartedly designed and engineered to fulfill federal government quotas. The two non-Tesla front runners, the Chevy Volt and Nissan Leaf, are in the unfortunate position of offering customers "2015" vehicles that were designed with 2011 in mind. Yet there's plenty of love in the air. Nissan has built over 180,000 Leafs worldwide, and chances are you will be seeing a second electric vehicle accompanying the Leaf when the new generation is released in the coming months. The Chevy Volt now offers the highest customer satisfaction out of any car or truck sold in North America. Forget the luxury cars, the sports cars, the family trucksters, and even the rolling flagship that guides Tesla's jaw dropping valuation on Wall Street. You want happy with your EV? The brand that's rocking the segment right now is Chevy. It's been doing so for a while. The EV market is poised to become a lot more sophisticated over the next 18 months with the three leading manufacturers – Tesla, General Motors, and Nissan – launching five brand new models along with no fewer than 16 other manufacturers making many of their bread and butter cars available as plug-in hybrids. So, if you want to keep your money as far away from the Arab dictatorships and Russian mafia as Mercury is from Pluto, and enjoy your commute, we're more than ready to do our part! So let's begin with the most important question. What's Your Range? How much driving do you generally do in a day? If the answer to that question is 50 miles or fewer, an all-electric vehicle like the Nissan Leaf may be the best ingredient for your driving recipe. This is especially true if you have a second vehicle you can use for the occasional longer drive or are willing to rent for the weekend. But here's a little surprise for you. The upcoming Chevy Volt was designed to be driven in all-electric mode for over 50 miles. Fifty-three, to be exact. Plus, the Volt's battery has experienced a lot fewer deterioration issues than the Nissan Leaf's due in part to the Volt's liquid-cooled battery, which also uses a lot less of its capacity than the air-cooled Leaf's does.