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Nissan and Renault chief engineers meeting to revive joint projects

PARIS — Renault's engineering boss will meet his counterpart at Nissan in Japan this week, two sources close to Renault said, as the carmakers seek to revive projects crucial to an alliance left reeling by the Carlos Ghosn affair. The Franco-Japanese alliance is wrestling with the fallout of the ouster and arrest of Ghosn, the architect of the partnership who now says it is at risk of collapse. Analysts say that in order to turn investor sentiment around, the firms need to make good on cost-saving joint engineering projects that have slowed since Ghosn's departure. According to the two sources, Gilles Le Borgne, who was hired on Jan. 6 from rival automaker PSA, will meet Nissan's Tsuyoshi Yamaguchi, the Nissan executive in charge of delivering the joint engineering projects. Renault did not respond to a request for comment on Le Borgne's meetings. Renault-Nissan's cost-saving alliance is vital to both companies as the car industry battles a slowdown and huge investments in cleaner vehicles and automated driving. "The alliance has taken a hit, but the alliance engineering team is still there," said a third source, who is close to the alliance. "You cannot, from one day to the next, stop something that's been embedded so deeply." Japanese prosecutors arrested Ghosn — who was at the time the head of the carmakers' alliance -- in November 2018 and accused him of financial misconduct. Ghosn slipped out of Japan and fled at the end of December to Lebanon. He says the charges were fabricated to force him out of an alliance in which the Japanese side no longer trusted its French partners. Renault Chairman Jean-Dominique Senard has said both sides are determined to make the partnership succeed, with the joint projects a major focus. Those projects will be on the agenda when the board of the alliance, which also includes Japanese carmaker Mitsubishi <7211.T>, holds a regular meeting in Japan on Jan. 30. One area of focus will be hybrid power systems, a field where, analysts say, the alliance has not effectively pooled its research and development efforts. Each of the three members of the alliance has developed their own systems. "That's been among the sources of the friction," said the third source close to the alliance.

Check out Nissan's clever digital Smart Rearview Mirror

Using cameras in place of a car's rearview mirrors has long been a feature of pie-in-the-sky concept cars, although so far, it's failed to translate into the world of production vehicles. Nissan is looking to change that, though, with its new Smart Rearview Mirror.
With a flick of a switch, drivers can jump back and forth between what they'd normally see through the rearview mirror and the camera's feed from the back of the car.
The Smart Rearview Mirror blends everything we know about traditional reflective glass mirrors with a video feed from the rear of the car into a form factor that's immediately recognizable to the average motorist. With a flick of a switch, drivers can jump back and forth between what they'd normally see through the rearview mirror and the camera's feed from the back of the car. The mirror itself features an integrated LCD display with a four-to-one aspect ratio.

China's largest dealer body pushes back against foreign automakers over huge inventories

Do not think for a second that automakers forcing inventory on dealers in order to pad the numbers is a ruse known only in the US. Stories of individual brands have hinted at the trouble Chinese dealerships are having trying to move units as the country's economic growth remains hot but comes off the boil, like the one revealing that 95 percent of Toyota-FAW showrooms are losing money. Yet Toyota isn't the only culprit, and the issue has become so dire that the China Automobile Dealers Association (CADA), the largest dealer body in the country, has written to the government to complain. Chinese car sales are expected to close out the year with an annualized growth of six-percent, down from last year's 14 percent when targets were set, while in the background the pace of overall economic expansion is the slowest its been since the early nineties. Automakers, shipping cars on schedule to make their earlier targets, have blown up inventories such that they are an average of 1.8 times monthly sales, when the preferred multiplier is from 0.9 to 1.2. According to the CADA, the price wars and necessary incentives mean that only 30 percent of dealers are operating in the black. That number is down a whopping forty percent since 2010. In response, Toyota has already said it will not make its 2014 target of 1.1 million cars sold. We're a long way from 2012, when Toyota planned on selling 1.8 million cars in China in 2015, a target that's now as realistic as a manticore. BMW, Honda and Nissan have erased numbers on their spreadsheets, too; BMW growth dropped from 20 percent to 8 percent midyear after it began "reducing wholesale supplies," and Honda has been reworking its plans as sales have decreased each of the past six months. It's a big deal for Chinese dealers to begin protesting publicly, the CADA saying, "In the past, dealers were angry, but dared not speak out. But now, they have to shout because the situation is getting so unbearable." With six-percent growth forecast for next year and dealers unwilling to remain underwater, The Year of the Sheep coming in 2015 could portend meaning beyond the zodiac. News Source: ReutersImage Credit: AP Photo/Andy Wong BMW Honda Nissan Toyota Car Buying Car Dealers