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Why a Renault-FCA merger could be good news for Nissan, Mitsubishi

TOKYO — Nissan's advanced technologies including platforms and electric powertrains could give it leverage in a merger involving Renault and Fiat Chrysler, thanks to a royalty system it has with the former, two people with knowledge of the matter said. A merged Renault-Fiat Chrysler could face an extra hurdle each time it uses technology developed by Nissan or Mitsubishi Motors, while the two Japanese automakers stand to gain a client in Fiat Chrysler (FCA), one of the people said. Both sources declined to be identified because of the sensitivity of the matter. Nissan's technology, particularly in electrification and emissions reduction, could give it some sway in the $35 billion potential tie-up between Renault and FCA, even as its stake in the newly formed company would be diluted. Currently Renault SA pays less for technology developed by Nissan than the Japanese automaker pays for French technology, a third person said. This has long been a sticking point for Nissan, and an area where Nissan could seek more favorable terms. "Whenever Nissan transfers platform, powertrain or other technology to Renault, there is a margin or royalty which Renault has to pay for use of that tech," one of the people said. "In that sense, FCA, if everything went well, would become another 'client' of ours and that's good. More business for us." A Nissan spokesman declined to comment on its royalty system. The potential Renault-FCA deal has complicated the Japanese automaker's already uneasy alliance with Renault. A further deal with Fiat Chrysler looks likely at least in the near term to weaken Nissan's influence in the 20-year-old partnership. Renault owns a 43.4% stake in Nissan and is its top shareholder. Nissan holds a 15% non-voting stake in Renault and would see that diluted to 7.5% after the FCA deal, albeit with voting rights. The imbalance between the two has long rankled Nissan, which is by far the larger company. Alliance imbalance Renault had previously angled for a merger with Nissan but has been rebuffed by CEO Hiroto Saikawa. Securing benefits from the merger deal will be important for Saikawa, who is grappling with poor financial performance while he struggles to right the company after the ouster of former chairman Carlos Ghosn last year.

Ferrari, Fiat, McLaren, Nissan join coronavirus ventilator efforts

Siare Engineering, Italy's largest manufacturer of hospital ventilators, has turned to Italian automakers Ferrari and Fiat to investigate the possibility that the automakers might help produce more of the live-saving machines that are urgently needed to fight the coronavirus pandemic. The Italian government has asked Siare to increase ventilator production from 160 per month to 500 as the country's death toll has surpassed 3,400 and is climbing rapidly.  "We're talking to Fiat Chrysler, Ferrari and Marelli to try to understand if they can lend us a hand in this process for the electronics part," Gianluca Preziosa, Siare's chief executive said in an interview quoted by Reuters, adding that the car companies' expertise in electronics and pneumatics could make them ideal partners. Preziosa said that another advantage of partnering with carmakers was their purchasing power, making them more likely to obtain parts that his small firm was struggling to secure amid coronavirus-related disruption to global supply chains. A spokesman for Exor, parent of both FCA and Ferrari, said that meetings with Siare had taken place on Thursday to study the feasibility of the idea and that a decision was expected in the coming hours. Two main options were being considered: either to help Siare engineer a capacity increase at its plant, with the support of technicians provided by FCA and Ferrari, or outsource production of ventilator parts to the carmakers' facilities. A source familiar with the matter told Reuters that Ferrari would be ready to start manufacturing ventilator parts in its famous Maranello headquarters, which lies close to the Siare factory, but that the luxury carmaker had yet to make a final decision. Automakers worldwide are being drafted for ventilator duty. In addition to Ford and GM making plans with the U.S. government; British Prime Minister Boris Johnson reaching out to Ford, Honda and Rolls-Royce; and an Elon Musk tweeted offer to build ventilators "if there is a shortage," other automakers and aerospace companies are joining in. In Europe, three groups have formed. Meggitt, which builds components including oxygen systems for civil aerospace and military fighter programs, is leading one consortium alongside engineers GKN, Thales and Renishaw. The other two teams are being led by carmakers McLaren, which is looking at how to design a simple version of a ventilator, and Nissan, which is working with others to support existing ventilator producers.

2017 Chrysler Pacifica isn't your parents' Town & Country [w/video]

I'm sick of people hating on minivans. There's something about two incredibly functional sliding doors that give people this idea that they've given up, and given in to family life. But if the van you see here had two fixed rear doors, and maybe an extra inch of ride height, it'd be gobbled up like mad as part of the growing crossover craze. So yes, the 2017 Chrysler Pacifica – that's right, Pacifica – is a minivan. But it's so packed full of features, technology, and functionality, that you really ought to look past those sliding doors. There promises to be an incredibly rewarding vehicle within. The 2017 Pacifica rides on an all-new platform, but dimensionally, it's similar to the outgoing Town & Country. That whole "ugh, minivans" thing is one of the reasons why Chrysler decided to axe the Town & Country name for 2017. Simply put, the target customers for the new minivan (young parents) would have grown up in their parents' Town & Country vans (or Caravans, or Voyagers...) in the 1980s. Three decades later, FCA wants to make it absolutely clear that this isn't just your parents' minivan. Why it chose to bring back the name of a lackluster part of its mid-2000s history, though, is anyone's guess. The 2017 Pacifica rides on an all-new platform, but dimensionally, it's similar to the outgoing Town & Country. It's a tenth of an inch shorter in length, about an inch wider, and roughly half an inch taller. The body itself looks great – influence from the 200 sedan is obvious up front, and around back in the taillights, and top-trim models can be had with 20-inch wheels – a big change from the old van, which topped out with 17-inch rolling stock. There's big weight-savings here, too – the Pacifica tips the scales at 4,330 pounds in base spec, which is over 300 pounds less than the Town & Country. Inside, it's more of the same from Chrysler. The interior design uses language brought up from the 200, and the different color and material choices look really rich, especially in Limited Premium trim. Of course, I'll wait to make final judgments on the cabin until I see it in base cloth spec, rife with kid fingerprints and french fries ground into the carpets. Up front, the Uconnect 8.4-inch touchscreen houses familiar infotainment functionality, and for backseat passengers, there's a new Uconnect Theater system, with a pair of 10-inch touchscreen displays.