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For next Nissan CEO, priority is profit before Renault partnership

The next head of Nissan Motor Co will need to prioritize a recovery in profits at the troubled Japanese firm ahead of trying to fix its relationship with top shareholder Renault SA, executives and analysts say. Reviving earnings would strengthen the carmaker’s hand in negotiations with its French partner, and is something Renault itself would welcome as the owner of a 43.4% stake in Nissan. JapanÂ’s second-largest automaker said on Monday CEO Hiroto Saikawa would step down on Sept. 16 after he admitted to being overpaid in breach of company rules. ItÂ’s another heavy blow for Nissan, which is already reeling from the arrest of former chairman Carlos Ghosn last year and a subsequent plunge in earnings. Its stock is down 20% this year. For SaikawaÂ’s yet-to-be-named replacement, the top priority will be lifting profits from a more than decade low. Earnings have been undercut by years of heavy discounts and low-margin sales to rental firms that have cheapened NissanÂ’s brand image. Renault, which has unsuccessfully sought a full-blown merger with its larger partner, is likely to give the Japanese firm time to focus on its turnaround, a Nissan executive said. “It goes without saying recovery is the biggest priority,” the executive said, declining to be identified because the information is not public. “We have RenaultÂ’s understanding on that.” Tensions in the Nissan-Renault partnership worsened after GhosnÂ’s arrest. He is awaiting trial in Tokyo on financial misconduct charges that he denies. The strain has sparked investor concern about the future of the Franco-Japanese automaking alliance at a time when car companies desperately need scale to keep up with sweeping technological changes like electric vehicles and ride-hailing. Nissan executives have long complained about their unequal partnership with Renault, which saved the Japanese firm from bankruptcy in 1999. Nissan holds a 15% stake in Renault, but without voting rights. Tokyo is also seen as being uneasy about the French governmentÂ’s 15% holding in Renault, which makes Paris an indirect shareholder in Nissan. “Profitability is likely to remain under pressure and it (Nissan) is unlikely to promptly reach an agreement with Renault over the future shape of the alliance,” analysts at Standard & PoorÂ’s said in a note. Tensions worsened when Renault tried to in vain to merge with Nissan and then Fiat Chrysler.

2015 Nissan Leaf gets B mode standard, new MorningSky Blue color

The Nissan Leaf is getting a few updates for the 2015 model year, some functional, some purely aesthetic. The appearance options will be made available later than the rest, and include a new exterior color called MorningSky Blue, as well as standard 17-inch aluminum alloy wheels for the SV trim level. In terms of driving, the 2015 Leaf gets a dedicated B-mode for every trim level, including the base S car (it was formerly only available in the SV and SL levels). This provides more aggressive regenerative braking when the driver is not on the accelerator - perfect for making the most of those downhill grades. Now every Nissan Leaf includes Normal, Eco-Mode and B-Mode, regardless of trim level. SV and SL trim levels also get a couple new convenience features. For those who find it impossible to disconnect while driving, the Hands-Free Text Messaging Assistant allows them to communicate without taking their eyes off the road, taking their hands off the wheel or risking a distracted driving ticket (perhaps you might want to rethink using it, though). Additionally, SV and SL customers will Voice Destination Entry to make spontaneous rerouting to the theme park a little easier. Of course, a lot of other Nissan cars got some cool upgrades this year. The Quest, NV200 Compact Cargo and V6-powered Altima, for instance, eke out another mile per gallon highway and combined. See what's new in the Leaf and the rest of the Nissan lineup in the press release below. The 2015 Nissan Lineup: Charting the Changes Nissan's U.S. sales have significantly outperformed the industry in 2014, up 12.7 percent CYTD through June. Sales have been led by the recently redesigned Altima, Rogue and Sentra – along with other models such as LEAF (+29.4%), JUKE (+44.9%), Frontier (+22.6%) and NV200 (+439.3%), which have shown strong results month after month. This gives the Nissan lineup great momentum heading into the 2015 model year. Headlining the changes for 2015 is the upcoming launch of the all-new Nissan Murano (due in late 2014). As the halo vehicle for Nissan's expanding range of bold crossovers and SUVs, the dramatic 2015 Murano features a new V-motion front end, LED boomerang lights and a unique "floating" roof. Murano's breakthrough exterior design carries into the interior, which offers an engaging social lounge feel through features such as advanced NASA-inspired Zero Gravity front and outboard rear seating and oversized Power Panoramic Moonroof.

Ghosn: Restoring Mitsubishi's reputation is biggest challenge

After news that Mitsubishi falsified its fuel economy data on every vehicle it has sold in Japan since 1991, and the tumble in the company's value that followed, the troubled carmaker has an unlikely savior. Nissan has confirmed it will purchase over one third of Mitsubishi's stock, or 34 percent. The stake is valued at $2.2 billion. Ghosn says making Mitsubishi a part of the Renault-Nissan alliance will save billions in development costs. But the merger certainly isn't without challenges. "The biggest challenge is to support Mitsubishi changing itself and growing and being profitable and restoring its reputation," said Ghosn. Nissan is a natural partner for Mitsubishi, and since the fuel economy scandal escalated from discrepancies in the data regarding Mitsubishi-manufactured, Nissan-badged Japan-market vehicles, it makes sense for the company to sweep in and save the day. Nissan itself is partially owned by Renault, and Nissan has a 15-percent stake in the French automaker. Mitsubishi's chairman, Osamu Masuko says that the merger was inevitable, that it "would have happened one day" anyway, according to the New York Times. Carlos Ghosn, chairman of both Nissan and Renault, is confident they will be able to turn Mitsubishi's fortunes around. "We have the track record to make it work", Ghosn said, referring to the Renault-funded rescue of Nissan in the early 2000s. Related Video: