2005 Mitsubishi Outlander Ls Sport Utility 4-door 2.4l on 2040-cars

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Mitsubishi reportedly plans to spend billions to get back in the game

Japanese automaker Mitsubishi Motors reportedly plans to inject more than 600 billion yen ($5.35 billion) in capital spending and research and development over the next three years through fiscal 2019 in a bid to turn around its business after recent scandals. The Nikkei newspaper said the new plan calls for spending 5 percent of annual sales on equipment and the same proportion on R&D. Funds will be used by the company for the development of electrified vehicles such as the new e-Evolution concept and for production in China and Indonesia. Mitsubishi Motors will release the specifics of the new medium-term plan on Wednesday, the business daily said. ($1 = 112.1600 yen) Reporting by Sumeet Gaikwad Related Video: Image Credit: Reuters Earnings/Financials Green Plants/Manufacturing Mitsubishi Technology Emerging Technologies Electric research and development nikkei

FCA-Renault merger faces tall odds delivering on cost-cutting promises

FRANKFURT/DETROIT — Fiat Chrysler Automobiles and Renault promise huge savings from a mega-merger, but such combinations face tall odds because of the industry's long product cycles and problems translating deal blueprints into real world success, industry veterans told Reuters. BMW's 1994 purchase of Rover, and Daimler's 1998 merger with Chrysler both made sense on paper. The companies promised to hike profits by combining vehicle platforms and engine families. Both combinations proved unworkable in reality, and were unwound. Renault and Nissan, which have been in an alliance since 1999 designed to share vehicle components, have only managed to use common vehicle platforms in 35% of Nissan's products despite an original target of 70%, according to Morgan Stanley. FCA and Renault have raised the stakes for themselves by ruling out plant closures. That increases the pressure to achieve more than $5 billion in promised annual savings from pooling procurement and research investments. The two companies have yet to fill in many of the blanks in the merger plan put forward by Fiat Chrysler. Renault's board is expected to act soon to accept the proposal, but that would lead only to a memorandum of understanding to pursue detailed operational and financial plans. A final deal and the legal combination of the two companies could take months to complete if all goes well. Pressure to cut automotive pollution is driving the latest round of consolidation. Automakers are looking at multibillion-dollar bills to develop electric and hybrid cars and cleaner internal combustion engines. Fiat Chrysler and Renault are betting they can design common electric vehicle systems, then sell more of them through their respective brands and dealer networks, cutting the cost per car. Developing all-new electric vehicles can bring more opportunities to share costs from the outset, industry experts said. "With the emergence of connected, autonomous, electric and shared vehicles, carmakers face immediate investments, so new opportunities for sharing costs have emerged," said Elmar Kades, managing director at Alix Partners. However, most electric vehicles lose money. This is a challenge for city car brands in Europe in particular. Both Renault and Fiat rely heavily on this segment for sales.

Police search Renault headquarters as part of Ghosn probe

PARIS — Police are searching Renault's corporate headquarters in Boulogne-Billancourt, which a judicial source said was related to an ongoing investigation into ex-Renault boss Carlos Ghosn and his use of Versailles for his 2016 wedding party. L'Express magazine reported earlier on Wednesday that the search was being carried out in relation to Ghosn, who faces charges of misconduct. Ghosn has denied any wrongdoing and has been released on bail. L'Express added that French authorities were probing a wedding reception party held at the Chateau de Versailles in 2016 to mark the wedding of Ghosn to his second wife Carole, and a judicial source confirmed those elements to Reuters. Renault itself confirmed that police were searching its premises, but declined to comment on the subject of the search. "Renault confirms that a search by police is currently underway at its headquarters in Boulogne-Billancourt and Renault is co-operating fully with authorities," said the company, adding that it would not make any further comment on the matter. Earlier this year, Renault said it had found evidence that it had paid part of Ghosn's wedding costs and added it would turn the investigation over to prosecutors. Ghosn's Versailles wedding party in October 2016 had already drawn public scrutiny for its opulence and Marie Antoinette-themed costumes. Government/Legal Mitsubishi Nissan Renault Carlos Ghosn