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PSA shares rise following FCA's breakup with Renault

Shares in Groupe PSA, parent company of automakers Peugeot, Citroen and the DS brand, rose on Thursday as analysts considered the possibility that Fiat Chrysler could turn back to PSA after withdrawing its $35 billion merger offer for Renault. "Both parties have acknowledged the need for scale or [mergers and acquisitions] and may pursue other opportunities. If Nissan was an obstacle (to an FCA-Renault deal) PSA-FCA discussions could resume," wrote brokerage Jefferies. Back in March at the Geneva Motor Show, rumors started swirling that PSA was interested in a potential merger with FCA. Mike Manley, who took over at the helm of Fiat Chrysler following the death of Sergio Marchionne, had indicated a willingness to look into potential partnership options. Of course, that was all before FCA proposed a merger with Renault — with that deal now off the table, attention naturally turns back to PSA, which is also based in France. "We expect both shares to react negatively but see FCA having wider strategic options and Renault shares more downside risk near-term," said Jefferies. According to Reuters, PSA shares were up 1.5% at the time this was published, making it the top-performing stock on France's benchmark CAC-40 Index. Renault saw its shares slump 7%. Shares for FCA fell 3% in early trading on the Milan Stock Exchange. Considering that FCA said in its statement confirming the withdraw of its merger offer with Renault that "political conditions in France do not currently exist for such a combination to proceed successfully," we have to wonder how keen the company is to begin negotiations with another French automaker like PSA. Those thoughts were similarly voiced by Bernstein Research analyst Max Warburton, who said (via Forbes), "Expect PSA to rise on unrealistic hopes it may be FCA's next date." Earnings/Financials Chrysler Fiat Mitsubishi Nissan Citroen Peugeot Renault FCA renault-nissan

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 pulled planned reveal of longer-range Leaf from L.A.

The arrest and detention of its former chairman, Carlos Ghosn, prompted Nissan at the last minute to pull the plug on plans to debut a longer-range version of its Leaf battery- electric car at the Los Angeles auto show, The Wall Street Journal reports. Nissan instead showed two mild-refresh models for 2019 — the Maxima sedan and the Murano crossover. It had reportedly hoped to make a bigger splash by unveiling the upgraded Leaf with actress and brand ambassador Margot Robbie at a media event at the Japanese American National Museum. It went ahead with an event at the venue, showing current models of the Leaf and holding the Nissan Futures event, the first time the series of panel discussion and keynote addresses had been staged in the U.S., with Robbie sitting down for a brief interview about owning an EV and sustainability issues. "The official announcement regarding details of the 2019 Nissan Leaf with additional performance capabilities is postponed to a later date," the company said in a statement. A spokesman told the Journal the postponement was "to ensure that this important product unveiling could receive the coverage it merits." Ghosn was arrested Nov. 19 in Japan on allegations of financial misconduct, including what Nissan has said was personal use of company money and deliberately under-reporting what he had been paid. Both Nissan and alliance partner Mitsubishi have ousted Ghosn as chairman, though his status remains unchanged for now at Renault, the third member of the partnership where he is both chairman and CEO. Renault has appointed a stand-in replacement while Ghosn remains in custody. Reuters reports that Tokyo authorities extended Ghosn's detention a second time Friday and have until Dec. 10 to file charges or release him. The auto world has been widely anticipating a longer-range version believed to be called the Leaf E-Plus, with a 60-kWh battery pack and an expected driving range of around 225 miles, up from the 40-kWh battery and 151-mile driving range of the current model. A recent report suggests that its starting price will be about $5,500 more than the 40-kWh version, meaning around $36,385 before federal EV tax credits. A spokesman tells Autoblog the postponement doesn't affect the new Leaf's on-sale date but added that date has yet to be announced.