1995 Nissan 300zx Base Convertible 2-door 3.0l on 2040-cars

Auto blog

With Nissan dragging it down, Renault predicts a worsening year

PARIS — Renault warned revenue may decline this year, scrapping a previous goal, after first-half profit was hit by weakening car demand and an earnings collapse at alliance partner Nissan in the wake of the Carlos Ghosn scandal. Net income slumped by more than half to 970 million euros ($1.08 billion) in January-June as revenue fell 6.4% to 28.05 billion, the French carmaker said on Friday. Operating profit also dropped 13.6% to 1.65 billion euros. "Given the degradation in demand, the group now expects 2019 revenues to be close to last year's," Renault said — abandoning an earlier pledge to increase revenue before currency effects. A broad-based auto sales downturn has rattled the sector, prompting profit warnings and compounding challenges for Renault and Nissan as they struggle to turn the page on the Ghosn era. Their former alliance boss is now awaiting trial in Japan on financial misconduct charges he denies. Renault's bottom line was hit by an 826 million-euro drop in earnings from its 43.4%-owned partner. Nissan is cutting 12,500 jobs globally after an earnings collapse that it is keen to blame on Ghosn's leadership. But Renault's own performance - reflected in an operating margin that declined to 5.9% from 6.4% the year before - compares less favorably with domestic rival PSA Group. The Peugeot maker bucked the downturn with a record 8.7% profit margin unveiled on Wednesday. Alliance tensions flared after Ghosn's November arrest, worsened when Renault tried in vain to merge with Nissan then Fiat Chrysler, and may be affecting operational performance, investors fear. Citi analyst Raghav Gupta-Chaudhary flagged a lower-than-usual 258 million euros in joint purchasing savings for Renault. "We thought this would be weak in light of the well-documented difficulties with the alliance," he said. Renault blamed falling sales in France, as well as Turkey and Argentina, for a 7.7% revenue drop at its core automotive business, whose profit margin slid to 4% from 4.5%. Operating free cash flow also suffered, coming in at a negative 716 million euros as investment jumped by 742 million euros to 2.91 billion. Renault, which is counting on model launches including a new Clio mini to boost performance in the second half of 2019, nonetheless reiterated pledges to deliver positive full-year cash flow and a margin close to 6%. Renault shares were down 0.5% at 52.02 euros as of 0800 GMT in Paris, after initially falling as much as 2.7%.

Infiniti installs Taisuke Nakamura as new design chief

The cubicles and corner offices at Infiniti HQ in Japan continue to change hands. Infiniti Global Design Chief Karim Habib, only in that position for about two years since leaving BMW in 2017, has left the Japanese luxury brand "to pursue other opportunities." In his place, Nissan has elevated Taisuke Nakamura, a 26-year company veteran who is currently Nissan's program design director responsible for global design strategy, and concept car and production vehicle design. Nakamura has a stout design resume in service to both Nissan and Infiniti, having worked on the Qs Inspiration sedan concept (above) shown at the Shanghai Motor Show in April, the QX Inspiration crossover concept shown at the Detroit Auto Show this year (below), and the Prototype 10 speedster concept revealed at Pebble Beach last year (bottom). All of those were electric concepts, making Nakamura the point man for Infiniti's push into electric vehicles and hybrids, and the carmaker's introduction of a new design language. Last year, Infiniti said it would have a new EV on the market in 2021, as well as "e-Power" series hybrids with small battery packs charged by gas-powered generators.   Those EVs should fully embody the brand's new design DNA, seen initially in the recent concepts. The automaker said around the Qs reveal that the new "aesthetics are underpinned by Infiniti's desire to challenge convention and design cars which are engaging, enriching, enabling and enchanting – what the company calls its ‘4ENÂ’ approach to design." At the QX reveal in January, Habib said that as engineers made a "shift towards smarter, more compact and less intrusive powertrains, we were able to create an alternative form with flowing gestures, more engaging in character and more enriching in experience. With its long cabin, balanced proportions and muscular stance, the concept heralds in a new era for Infiniti models.” Infiniti said Nakamura takes up his post next week, Sept. 1, and will report to the same boss he has now, Alfonso Albaisa, Nissan's global design head. Aside from Habib, other top non-Japanese Nissan executives such as Daniele Schillaci, Jose Munoz and Trevor Mann have left the Japanese automaker in the recent past, since the arrest of Carlos Ghosn. The former chairman, who faces charges of fraud and misconduct, is awaiting trial in Japan over charges including enriching himself at a cost of $5 million to Nissan, Japan's No. 2 automaker.

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.