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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.

Nissan is exploring the sale of its 34% stake in Mitsubishi

TOKYO — Nissan is looking to sell some or all of its 34% stake in Mitsubishi Motors, Bloomberg News reported on Monday, citing unidentified sources, a move that would reshape a three-way alliance that includes France's Renault. Nissan shares rose 5% on the news. Mitsubishi Motors was up 3%. "There are no plans to change the capital structure with Mitsubishi," a Nissan company spokeswoman told Reuters in an emailed statement. A Mitsubishi Motors spokesman said the same, adding the company would continue to collaborate within the alliance. Renault did not immediately respond to an email seeking comment. Nissan, struggling to recover from the pandemic-induced downturn, could sell its stake to a Mitsubishi group company such as Mitsubishi Corp, which already owns a fifth of Mitsubishi Motors, Bloomberg said. Such a deal would fundamentally alter a three-way partnership built by Carlos Ghosn, former chairman of the alliance, which plunged into confusion when he was arrested in 2018 on charges of financial misconduct. Ghosn had wanted a full merger of Renault and Nissan, which was shelved, according to Reuters sources, as the companies decided to fix the troubled alliance. The pandemic has, however, compounded problems and made a recovery hard. Nissan, which is 43% owned by Renault, last week cut its operating loss forecast for the year to March by 28%, helped by a rebound in demand, especially in China. Mitsubishi Motors, Japan's No.6 automaker, expects to post an operating loss of 140 billion yen for the business year. Both companies are cutting production levels and costs in a bid to return to profitability. Related Video:

Recharge Wrap-up: Big Oil fails at renewable fuel, scientists study air with EVs, plug-in Panamera sales

Big Oil companies help keep renewable fuels out of your tank, a new report shows. No surprise there, right? The Renewable Fuels Association published a report card grading the country's largest retail gasoline chains on fuel offerings like E85 and E15. The report gave failing grades, with less than one percent of stations offering E15 or E85, to "Big Five" companies Exxon, BP, ConocoPhillips, Chevron and Shell, among other oil company and convenience/grocery store brands. The only major oil companies that didn't get an "F" were Valero (D), Cenex (B), and Marathon (A-). The eight companies that scored an A+ had at least 25 percent of their stations offering E85 or E15. Read more at Domestic Fuel.Leicester scientists are studying local air pollution using EVs. Beginning July 4, University of Leicester researchers began driving electric vehicles kitted out with special sensors to monitor air quality throughout the city (similar to how California does it). Now their emissions-free daily driving duties double as data collection for their studies. "By monitoring air quality as a seamless part of our daily transport system, we are providing a cost-effective way to help inform future policy and operational systems," says the University's Dr. Roland Leigh. Read more at Fleet News. "There is no doubt electric cars are the future." – Nissan's Andy Palmer Nissan is exploring the idea of taking its Leaf EV to India, but a lack of charging options is an obstacle. According to Nissan's chief planning officer Andy Palmer, "There is no doubt electric cars are the future. The product is there, what we need is infrastructure. Charging is a big challenge." Though Nissan stopped short of saying it (this time), this could possibly mean working with Mahindra, which said it is open to collaborating with other companies concerning EVs. Learn more in this article from the Hindustan Times and know that India is rolling out a plan to encourage the production and adoption of EVs. The National Electric Mobility Mission Plan will get over $2 billion in funding, and some of that will go toward creating a charging infrastructure (you hear that, Nissan?). This is good news for EV manufacturers, India's economy and people who enjoy breathing clean air. Read more at The Financial Express.Porsche has reported a significant sales increase, part of which is due to demand for the Panamera S E-Hybrid.