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Nissan didn't have much say in merger talks, but it had what FCA wanted

TOKYO — Nissan wasn't consulted on the proposed merger between its alliance partner Renault and Fiat Chrysler, but the Japanese automaker's reluctance to go along may have helped bring about the surprise collapse of the talks. While Nissan Motor Co. had a weaker bargaining position from the start, with its financial performance crumbling after the arrest last year of its star executive Carlos Ghosn, it still had as its crown jewel the technology of electric vehicles and hybrids that Fiat Chrysler wanted. The board of Renault, meeting Thursday, didn't get as far as voting on the proposal, announced last week, which would have created the world's third biggest automaker, trailing only Volkswagen AG of Germany and Japan's Toyota Motor Corp. When the French government, Renault's top shareholder with a 15% stake, asked for more time to convince Nissan, Fiat Chrysler Chairman John Elkann abruptly withdrew the offer. Although analysts say reviving the talks isn't out of the question, they say trust among the players appears to have been broken. "The other companies made the mistake of underestimating Nissan's determination to say, 'No,' " said Katsuya Takeuchi, senior analyst at Mitsubishi UFJ Morgan Stanley Securities in Tokyo. The Note, an electric car with a small gas engine to charge its battery, was Japan's No. 1 selling car, the first time in 50 years that a Nissan beat Toyota and Honda. Renault and Fiat Chrysler highlighted possible synergies that come from sharing parts and research costs as the benefits of the merger. But what Fiat Chrysler lacks and really wanted was what's called in the industry "electrification technology," Takeuchi said. With emissions regulations getting stricter around the world, having such technology is crucial. Yokohama-based Nissan makes the world's best-selling electric car Leaf. Its Note, an electric car equipped with a small gas engine to charge its battery, was Japan's No. 1 selling car for the fiscal year through March, the first time in 50 years that a Nissan model beat Toyota and Honda Motor Co. for that title. Nissan is also a leader in autonomous-driving technology, another area all the automakers are trying to innovate. "Although Nissan had no say, its cautionary stance on the merger ended up being very meaningful," Takeuchi said.

Fiat E-Ducato is Stellantis' first all-electric delivery large van

MILAN, Italy — Stellantis on Thursday launched its first fully electric large van, the Fiat E-Ducato, as part of its bid to expand its range of battery electric and hybrid vehicles. Stellantis has said it would offer electric versions of almost all of its European lineup by 2025, as the auto industry faces regulatory pushes in Europe and China to accelerate the shift to zero-emission vehicles. The E-Ducato, is already available for orders to clients and will be followed this year by other similar large vans produced by Stellantis under the Peugeot, Opel and Citroen brands. The E-Ducato's performance can match that of a diesel van, Fiat says, with the electric motor producing torque of 206 pound-feet and up to 122 hp. Acceleration of 0-50 km/h (31 mph) is done in 5 seconds. The E-Ducato has two battery blocks available: 47 kWh and a best-in-class 79 kWh, and will ultimately have four types of charging modes, three of them available at launch. Range figures in an urban delivery setting are 146 miles with the 47-kWh battery, and Fiat say the E-Ducato can travel up to 229 miles on a charge in a more urban delivery setting. It can take a 60-mile charge in a half-hour. Batteries have a warranty of 8 years/99,000 miles on the 47-kWh model and 10 years or 136,000 miles on the 79-kWh version. The E-Ducato is produced in Atessa, Stellantis' only plant in Italy running almost at full capacity, but will have its electric powertrain installed in Turin's Mirafiori. Stellantis, formed at the start of this year through the merger of Fiat Chrysler and Peugeot maker PSA, is Europe's largest light commercial vehicle maker. It already offers full electric versions of medium-sized vans and said it would start deliveries in Europe of its first medium-sized vans powered by hydrogen fuel cells by the end of this year. The E-Ducato was developed in a partnership with delivery service DHL.  Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Peugeot maker PSA posts record profits ahead of FCA merger

PARIS — Peugeot maker PSA Group said its profitability reached a record high in 2019 but the French carmaker forecast falling industry sales in Europe this year as it pursues its merger with Fiat Chrysler, which is strong in North America. PSA has trimmed costs in areas such as the procurement of components as it has integrated its acquisition of Opel and Vauxhall, boosting operating margins to 8.5% last year. The group, which also produces cars under the Citroen and DS brands, offset a slump in vehicle sales by selling pricier SUV models, with launches including the Citroen C5 Aircross helping to lift revenues by a higher-than-expected 1% to $81.2 billion (74.7 billion euros). That helped it stand out in a car market where some rivals including France's Renault have struggled with sliding revenues and profits, amid a broader downturn in demand. PSA's group net profit increased 13.2% to a record 3.2 billion euros, and the company increased its dividend against 2019 results to 1.23 euros per share, up 58% from 2018 levels. The carmaker was "once again very solid", analysts at brokerage Oddo-BHF said in a note, adding the results confirmed the company's "best-in-class status." However PSA forecast a 3% contraction in Europe's car market this year, by far its biggest market. The tie-up with Fiat Chrysler will help it gain exposure to that group's strong presence in North America with brands like Jeep. The two companies struck a deal in December to create the world's No.4 carmaker, to better cope with market turmoil and the cost of making less-polluting vehicles. Fiat also posted more upbeat results than most rivals this year. CORONAVIRUS WEIGHS PSA boss Carlos Tavares told a news conference that the two groups were both in good shape and well placed to face market challenges together. He said he did not expect any major regulatory hurdles to the merger, adding it had so far submitted 14 approval requests to competition authorities out of the 24 it needs. There are no immediate plans to change anything in the large portfolio of brands within the combined group, he added. However the companies still face problems this year, including the coronavirus outbreak which has paralyzed production in China and hits carmakers' supply chain. PSA said the coronavirus impact was still difficult to assess. It factories in Wuhan, at the epicenter of the outbreak, are due to reopen in the second week of March.