2014 Nissan Altima 2.5 S 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%.

Recharge Wrap-up: Nissan, Tesla report CO2 savings, rare earth metal recycling simplified

A new process simplifies the recycling of rare earth metals. While the strong magnetic properties of metals like neodymium and dysprosium make them useful in electric vehicles traction motors, there are concerns about their availability and the environmental costs of mining them. Researchers at University of Pennsylvania have developed an easier method to recycle those metals that is less energy intensive and more cost effective. "We have designed a way to separate the two metals by selectively dissolving the neodymium in a solution and leaving behind the dysprosium as a solid," says Justin Bogart, a graduate student working on the project. "This quick and easy method has allowed us to separate equal mixtures of the metals into samples that are 95 percent pure." Now the team is working to improve that level of purity. Read more from University of Pennsylvania. Nissan Leaf drivers in Europe have saved over 55,000 tons of CO2 emissions. Worldwide, the 178,074 Leafs sold account for the prevention of over 293,000 tons of CO2 emissions so far. That equates that to the neutralizing effect of 19 million trees. Besides the positive effects on environmental and noise pollution that switching to electric mobility provides, Nissan also points out that it's good business, too. EVs like the Nissan Leaf and e-NV200 cost about 40 percent less than combustion vehicles to maintain, and the cost of electricity is substantially lower than that of fossil fuels. Additionally, Nissan has published a video of the Leaf touring Bristol to celebrate the greening of European cities with the help of electric vehicles. See the video, and read more from Nissan. Tesla customers have driven a cumulative 1 billion miles. Together, nearly 75,000 Model S drivers have prevented more than 570,000 tons of CO2 emissions worldwide. To put that in perspective, a billion miles is the equivalent of 4,186 trips to the moon, and almost 40,000 trips around the Earth. In the UK, where the Model S is celebrating its one-year anniversary, drivers have already accumulated 6.6 million miles. Tesla is celebrating its milestone with the Next Billion Miles Tour, hosting hands-on events and test drives in 80 cities across North America, Europe and Asia. See the video from Tesla above, visit the One Billion Miles microsite and read more in the press release below.

UK electric motor maker YASA expands production 50-fold for EVs

LONDON — British electric motor manufacturer YASA said on Thursday it was increasing its production capacity from 2,000 to 100,000 units with a new factory to tap into growing demand from carmakers for greener technologies. Automakers are racing to build greener vehicles and improve charge times in a bid to meet rising customer demand and air quality targets but Britain lacks sufficient manufacturing capacity, an area the government is building up. Last year, the government picked a site in central England to house a new automotive battery development facility, which will develop the processes required to manufacture the latest battery advancements. On Thursday, YASA, based near the English city of Oxford, said it had raised another 15 million pounds ($21 million) as part of its expansion. "Our customers are looking to adopt innovative new technologies such as YASA's axial-flux electric motors and controllers in order to meet the needs of the rapidly expanding hybrid and pure electric automotive market," said Chief Executive Chris Harris. The firm exports 80 percent of production and has worked with companies including Britain's two biggest carmakers Jaguar Land Rover and Nissan as well as Aston Martin. JLR will decide this year whether to build electric cars in its home market, previously citing factors such as pilot testing and support from science and government as pre-requisites. Reporting by Costas PitasRelated Video: