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Nissan tells Renault it is 'not opposed' to Fiat Chrysler merger plan

TOKYO – Nissan on Wednesday told Renault it wasn't opposed to its partner's potential $35 billion merger with Fiat Chrysler, the Nikkei newspaper said, as the two met to hash out the future of their alliance amid a deal that could upend the auto industry. The leaders of Nissan Motor Co, France's Renault SA and junior partner Mitsubishi Motors Corp gathered at Nissan's headquarters in Yokohama for a scheduled alliance meeting - one overshadowed by Fiat Chrysler's proposal this week for a merger-of-equals with Renault. The plan, which would create the world's third-largest automaker, raises difficult questions about how Nissan would fit into a radically changed alliance. Renault Chairman Jean-Dominique Senard arrived in Japan on Tuesday to discuss the proposed tie-up with Nissan, 43.4% owned by the French automaker. "We are not opposed," the Nikkei quoted an unnamed Nissan source who had attended the meeting as saying. The person also said "many details need to be worked out" before the Japanese automaker solidifies its position on the issue, the Nikkei reported. In a statement, the alliance members confirmed that they had "an open and transparent discussion" on the proposal. The deal looks designed to tackle the costs of far-reaching technological and regulatory changes, including the drive toward electric vehicles. Nissan, which has rebuffed overtures by Renault for a merger of their own despite their 20-year alliance, was blindsided by the discussions, sources have told Reuters, stoking concerns that a deal with Fiat Chrysler could weaken Nissan's relations with Renault. The tie-up also poses an additional challenge for Nissan CEO Hiroto Saikawa, already grappling with poor financial performance and an uneasy relationship with Renault after Nissan led the ousting last year of long-standing alliance chairman Carlos Ghosn. There have long been tensions between Nissan and Renault over the imbalance of power in their alliance. Nissan, the bigger company, holds a 15% non-voting stake in the French automaker, while Renault owns 43.4% of Nissan. Ahead of Wednesday's meeting, Japanese media quoted Saikawa as telling reporters that he would look at the potential opportunities afforded by a Renault-FCA merger. Credit ratings agency Moody's said it was vital for Nissan to stabilize its partnership with Renault to expand operational synergies and improve margins.

Fiat Chrysler denies rumors that Ferrari SpA is moving to London

It seems that reports of Ferrari's relocation to London have been somewhat exaggerated. The past few days have seen more than a few stories on the legendary Italian brand's decision to move its tax base out of Italy, and now Fiat Chrysler is speaking out against the scuttlebutt. "These rumors have no grounds," FCA said in a statement obtained by Reuters. "There is no intention to move the tax residence of Ferrari SpA outside Italy, nor is there any project to delocalize its Italian operations, which will continue to be subject to Italian tax jurisdiction." Ferrari's move to London was based on two beliefs. First, that the company would benefit from being located nearer the investor community, should it be listed on a European exchange. FCA, though, said a European listing was only a "possibility," according to Reuters. Instead, the company will be listed on an American market. Aside from the move to benefit investors, it was believed Ferrari was looking to relocate to escape Italy's more oppressive corporate tax rate, which sits around at 31.4 percent, compared to the UK's 20 percent, Bloomberg reports. This denial by Fiat Chrysler, though, should be enough to close the book on Ferrari leaving Italy, no matter how much sense it might make. Related Video:

Fiat diesels might also cheat emissions tests

Et tu, Fiat? Fiat is the latest automaker to come under suspicion for excessive emissions from its diesel vehicles. So far the trouble is only in Germany, as opposed to VW's trouble in multiple countries. And instead of using VW's method of installing software that identifies when the car is undergoing an emissions test and only then turning on emissions control devices, Fiat is running out the clock. Because the German emissions test lasts around 20 minutes, Fiat is accused of having its NOx emissions control systems operate only for the first 22 minutes when the car starts up. This potential new bombshell was first reported by Bild am Sonntag, a German newspaper. Bild says that the Italian automaker is under investigation by German authorities after a test of a 500X revealed this time-based method. Bild also says that Bosch tipped off the German authorities about Fiat's strategy. German transport minister Alexander Dobrindt released a report of new tests of 53 diesel cars and highlighted Fiat's numbers, saying, "We will need to carry out further tests on Fiat models." In February, the environmental lobby group DUH found that a 500X that had been running for a while emitted more NOx than one with a cold engine. Fiat said at the time that it had conducted an internal review and found that its diesel engines comply with the law. Of course, thanks to VW's diesel scandal implosion last fall, questions have been emerging from regulators around the world about diesel emissions from passenger vehicles. Mitsubishi was recently suspected of diesel emission irregularities in Japan. A recent lawsuit in the US accuses Mercedes-Benz of using a cheat device. Greenpeace has raised questions about the testing method that German authorities are using to test diesel vehicles. And on and on and on. Related Video: News Source: ReutersImage Credit: Sajjad Hussain/AFP/Getty Images Government/Legal Green Fiat Diesel Vehicles vw diesel scandal diesel emissions fiat 500x 500x