2014 Nissan Versa Note on 2040-cars

Auto blog

Mitsubishi to join alliance with Honda and Nissan, Nikkei reports

TOKYO — Japan's Mitsubishi Motors is set to join an alliance between Honda Motor and Nissan Motor, creating a tie-up between automakers with combined sales of more than 8 million vehicles, the Nikkei newspaper said on Sunday. Mitsubishi Motors, which is 34% owned by Nissan, will work with Honda and Nissan to finalize the details of their strategic partnership, Nikkei said, adding the three firms intend to standardize in-vehicle software that controls cars. Mitsubishi Motors declined to comment on the report, while a Nissan spokesperson would only say the report was not based on something either of the companies had announced. Spokespeople for Honda did not respond to a request for comment. The push comes as Nissan, Japan's third biggest automaker, has been steadily losing market share in its two largest markets, the United States and China, which together accounted for half of its global sales in the year to March. On Thursday, the company slashed its annual outlook after heavy discounting in the U.S. almost completely wiped out its first-quarter profit. Nissan and Honda said in March they were considering a strategic partnership to collaborate on producing electric vehicle components and artificial intelligence in automotive software platforms. Mitsubishi Motors is already part of a long-standing alliance with Nissan and France's Renault that the three automakers last year agreed to restructure, aiming for a downsized but more pragmatic and agile partnership. Separate collaboration between Nissan, Honda and Mitsubishi Motors could help Japan's automakers cut costs and beef up to battle tough competition in EVs, dominated by companies like China's BYD and Tesla. In China, the world's largest auto market, Japanese brands previously were strong but are now up against domestic automakers that have rapidly increased production and won over consumers with low-priced vehicles loaded with software.

Half of Chinese car buyers won't shop Japanese over hard feelings

The hard feelings between China and Japan is no real secret. Besides modern-day disputes, the two countries have had a long-running enmity that dates back to well before the atrocities of World War II. All things considered, then, it shouldn't be a shock that half of Chinese car buyers wouldn't consider a Japanese car. This survey, conducted by Bernstein Research, found that 51 percent of 40,000 Chinese consumers wouldn't even consider a Japanese car – which, again, isn't really surprising, when you consider stories like this. According to Bernstein, the most troubling thing is the location of these sentiments – smaller, growing cities where the population is going to need sets of wheels. We imagine it wouldn't be as big of an issue in traffic-clogged Shanghai or Beijing, but these small cities are going to become a major focus for automakers. "Nationalistic feelings are an impediment. [Japanese] premium brands will struggle," analyst Max Warburton wrote in a research note, according to The Wall Street Journal. Things will improve for Japanese makes, although China will remain a challenge, with Warburton writing, "the one thing that comes out most clearly is that most Chinese really want a German car. While we expect Japanese brands to continue to recover market share this year, ultimately the market will belong to the Germans." There are a few other insights from the study. According to WSJ, Japanese brands are viewed better than Korean brands, and they're seen as more comfortable than the offerings from Germany or the US, despite the fact that everyone in China apparently wants a German car. This is a tough position for the Japanese makes to be in, as there's really not a lot they can do to win favor with Chinese buyers. It will be interesting to see how this plays out, particularly as the importance of the PRC continues to increase year after year. News Source: The Wall Street Journal - sub. req.Image Credit: Kazuhiro Nogi / AFP / Getty Images Honda Mazda Nissan Toyota Car Buying

Nissan is optimistic about FCA partnership, but wants the right terms

BEIJING – Nissan is optimistic about partnering with a combined Renault and Fiat Chrysler (FCA), as long as it can protect the ownership of technology developed over two decades of working with Renault, a senior executive told Reuters. The executive, who declined to be identified because he is not authorized to speak to the media, said he was cautiously optimistic about the possibility of generating "synergies" by sharing Nissan's autonomous drive know-how, electrification and greenhouse-gas-scrubbing technologies for powertrains. But he said the possible $35 billion merger of Renault and FCA would not give FCA the automatic right to use those technologies, which it needs to meet stringent emissions regulations and better compete in a industry being transformed by electric vehicles. He also floated the possibility that Nissan could look at boosting its stake in Renault, or a merged Renault-FCA, to gain more say in shaping the future of the alliance. "We would go ahead with partnering or cooperating with FCA only if we can guarantee tangible benefits from sharing technologies with FCA and only if we can work out conditions that are satisfactory to us," the Yokohama-based executive said. "If Renault wants to pursue this deal, we feel we need to look seriously at supporting them," he said. The executive's comments highlight how Nissan could look to leverage its advanced technology to gain greater bargaining power with a merged Renault-FCA. Renault is Nissan's top shareholder with a 43.4% shareholding, while Nissan holds a 15% non-voting stake in the French automaker. That unequal partnership has long rankled Nissan, which is the bigger company by far. A Nissan spokesman referred Reuters to a statement issued on Monday, where Nissan Chief Executive Hiroto Saikawa said: "I believe that the potential addition of FCA as a new member of the alliance could expand the playing field for collaboration and create new opportunities for further synergies." "That said, the proposal currently being discussed is a full merger which — if realized — would significantly alter the structure of our partner Renault. This would require a fundamental review of the existing relationship between Nissan and Renault," Saikawa said, adding that Nissan would analyze and consider its "existing contractual relationships". BOOSTING STAKE?