Awd 4dr S Low Miles Suv Automatic Gasoline 3.5l V6 Cyl Super Black on 2040-cars

Auto blog

Why a Renault-FCA merger could be good news for Nissan, Mitsubishi

TOKYO — Nissan's advanced technologies including platforms and electric powertrains could give it leverage in a merger involving Renault and Fiat Chrysler, thanks to a royalty system it has with the former, two people with knowledge of the matter said. A merged Renault-Fiat Chrysler could face an extra hurdle each time it uses technology developed by Nissan or Mitsubishi Motors, while the two Japanese automakers stand to gain a client in Fiat Chrysler (FCA), one of the people said. Both sources declined to be identified because of the sensitivity of the matter. Nissan's technology, particularly in electrification and emissions reduction, could give it some sway in the $35 billion potential tie-up between Renault and FCA, even as its stake in the newly formed company would be diluted. Currently Renault SA pays less for technology developed by Nissan than the Japanese automaker pays for French technology, a third person said. This has long been a sticking point for Nissan, and an area where Nissan could seek more favorable terms. "Whenever Nissan transfers platform, powertrain or other technology to Renault, there is a margin or royalty which Renault has to pay for use of that tech," one of the people said. "In that sense, FCA, if everything went well, would become another 'client' of ours and that's good. More business for us." A Nissan spokesman declined to comment on its royalty system. The potential Renault-FCA deal has complicated the Japanese automaker's already uneasy alliance with Renault. A further deal with Fiat Chrysler looks likely at least in the near term to weaken Nissan's influence in the 20-year-old partnership. Renault owns a 43.4% stake in Nissan and is its top shareholder. Nissan holds a 15% non-voting stake in Renault and would see that diluted to 7.5% after the FCA deal, albeit with voting rights. The imbalance between the two has long rankled Nissan, which is by far the larger company. Alliance imbalance Renault had previously angled for a merger with Nissan but has been rebuffed by CEO Hiroto Saikawa. Securing benefits from the merger deal will be important for Saikawa, who is grappling with poor financial performance while he struggles to right the company after the ouster of former chairman Carlos Ghosn last year.

Nissan's Taxi of Tomorrow shut down by NYC courts [UPDATE]

Justice Schlomo Hagler may have just put a big dent in Nissan's plans to rule New York City's taxi fleets and outgoing Mayor Mike Bloomberg's vision of a unified fleet of yellow cabs.
As an October 28 deadline approached that would see all current, non-hybrid taxis replaced over by the Nissan NV200 over a three-to-five-year span, the legal battle that's enveloped the Taxi of Tomorrow program from the start has intensified. In a lawsuit, the Greater New York Taxi Association claims New York's Taxi and Limousine Commission overstepped its powers in mandating that taxi fleets are refitted with the NV200, according to the New York Daily News. This isn't the first time the courts have sided with the cabbies in the ToT debate.
Justice Hagler agreed with the cabbies, striking down the Taxi of Tomorrow purchasing requirements, and saying, "Simply stated, the power to contract and compel medallion owners to purchase the Nissan NV200 from Nissan for ten years does not exist in the City Charter," according to The Wall Street Journal.

Nissan wants French State out of its alliance with Renault

While it's called the Renault-Nissan Alliance, the French side actually throws around a lot of weight in the relationship, and the government there is the largest shareholder. Meanwhile, the Japanese company generates about two-thirds of the sales. As leader of both automakers, Carlos Ghosn is reportedly now working to put more control into the Nissan side, according to insiders speaking to Reuters. The French State is expected to fight hard against losing sway. The government in France prompted Ghosn's distrust after buying up 19.7 percent of Renault's stock, from a previous 15 percent. Officials snubbed the CEO by giving him just a few hours notice, according to Reuters. Now, the boss is looking for ways to mitigate state control, but to make this plan happen Ghosn needs formal approval from the Renault board. If successful, the proposed plan would overhaul the close partnership between the automakers. Whereas the French side currently has the final say in decisions, this move would grant both of them equal power. In addition, Nissan would become the largest owner of Renault, but the French wouldn't have the same control over its Japanese ally. The French government isn't ready to just hand over power to Ghosn, though, because it reportedly wants to protect jobs in the country. The Alliance "must not be destabilized by governance changes or adjustments that could also lead to conflicts of interest," Economy Minister Emmanuel Macron said to Reuters. Clearly, this fight is just beginning. Related Video: