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FCA-Renault merger faces tall odds delivering on cost-cutting promises

FRANKFURT/DETROIT — Fiat Chrysler Automobiles and Renault promise huge savings from a mega-merger, but such combinations face tall odds because of the industry's long product cycles and problems translating deal blueprints into real world success, industry veterans told Reuters. BMW's 1994 purchase of Rover, and Daimler's 1998 merger with Chrysler both made sense on paper. The companies promised to hike profits by combining vehicle platforms and engine families. Both combinations proved unworkable in reality, and were unwound. Renault and Nissan, which have been in an alliance since 1999 designed to share vehicle components, have only managed to use common vehicle platforms in 35% of Nissan's products despite an original target of 70%, according to Morgan Stanley. FCA and Renault have raised the stakes for themselves by ruling out plant closures. That increases the pressure to achieve more than $5 billion in promised annual savings from pooling procurement and research investments. The two companies have yet to fill in many of the blanks in the merger plan put forward by Fiat Chrysler. Renault's board is expected to act soon to accept the proposal, but that would lead only to a memorandum of understanding to pursue detailed operational and financial plans. A final deal and the legal combination of the two companies could take months to complete if all goes well. Pressure to cut automotive pollution is driving the latest round of consolidation. Automakers are looking at multibillion-dollar bills to develop electric and hybrid cars and cleaner internal combustion engines. Fiat Chrysler and Renault are betting they can design common electric vehicle systems, then sell more of them through their respective brands and dealer networks, cutting the cost per car. Developing all-new electric vehicles can bring more opportunities to share costs from the outset, industry experts said. "With the emergence of connected, autonomous, electric and shared vehicles, carmakers face immediate investments, so new opportunities for sharing costs have emerged," said Elmar Kades, managing director at Alix Partners. However, most electric vehicles lose money. This is a challenge for city car brands in Europe in particular. Both Renault and Fiat rely heavily on this segment for sales.

'Taxi of Tomorrow' is finally reality in New York

The Nissan NV200 has had quite a rough ride to becoming New York City's Taxi of Tomorrow. The vans actually went on sale in late 2013, but Nissan's $1 billion deal to be the Big Apple's exclusive cab has faced an ongoing fight with drivers and politicians there. However, the roadblocks have been cleared, and the yellow vans finally became the city's official taxi on September 1. New Yorkers might not notice the change anytime soon, though. According to The New York Times, there are currently about 750 NV200s servicing the city out of 13,000 yellow cabs. The number of vans should rise quickly because up to 3,000 drivers replace their well-worn vehicles each year. Eventually the Taxi of Tomorrow will make up about 80 percent of the fleet, while the rest will be hybrid or wheelchair-accessible models. The challenge against the van largely focused on forcing most drivers into just a single model. At times the court agreed that the monopoly was unfair. The deal was even rendered void at one point. According to The New York Times, it took a decision in June to finally grant permission for the full NV200 agreement. The challenges to the NV200's large-scale adoption aren't over yet, though because the introduction comes at a challenging time for the New York taxi industry. Ridesharing apps, particularly Uber, are luring both riders and some yellow cab drivers to the tech company. While the Taxi of Tomorrow offers amenities like a panoramic sunroof and a cellphone charging, there are reportedly more Uber cars than traditional taxis currently at work in the Big Apple.

2016 Nissan Maxima offers 300 hp and 30 mpg for $32,410* [w/video]

After a surprise debut during the 2015 Super Bowl, Nissan has finally divulged the details on its latest Maxima sedan at the 2015 New York Auto Show. Starting at $32,410 (*not including a $825 destination charge), the Maxima retains the current car's powertrain, featuring a 3.5-liter V6 and a continuously variable transmission. Unlike its predecessor, though, the new fullsizer boasts 300 ponies, up from 290. While the power figures and displacement of the new V6 are similar to last year's model, Nissan claims over 60 percent of the parts in the new 3.5 are new. That means not only more power, but a 15-percent improvement in highway fuel economy, with the Maxima estimated to hit 30 miles per gallon. The CVT is also new, with Nissan claiming it's now "performance oriented." Beyond the oily bits, the cabin is home to an eight-inch touchscreen, while drivers will enjoy a seven-inch display in the instrument cluster. In terms of safety tech, Nissan installed the standard alphabet soup of acronyms, offering up Predictive Forward Collision Warning (PFCW), adaptive cruise control, Forward Emergency Braking (FEB), and blind-spot warning with cross-traffic alert. As we said, the Maxima will start at $32,410, and will be offered in four grades, with the Platinum trim remaining at the very top of the line. It's not clear, however, how those prices will break down, nor when the Maxima will arrive in dealers. 2016 Nissan Maxima "4-Door Sports Car" makes global debut at New York International Auto Show President and CEO Carlos Ghosn unveils Nissan's totally redesigned flagship Maxima "4 Door Sports Car" All-new Maxima features a 300-horsepower 3.5-liter V6 and new lighter, yet more rigid chassis, bringing sports car-like acceleration and handling to large sedan segment 2016 Maxima is set to arrive in U.S. Nissan showrooms with a starting M.S.R.P. of $32,410* NEW YORK – Nissan today unveiled the all-new Nissan Maxima during a press conference at the New York International Auto Show. Making the presentation was Nissan President and CEO Carlos Ghosn, who addressed a range of topics including Nissan's $10.1 billion investment in the U.S. in the past three decades. The dramatically styled 2016 Maxima, created by driving enthusiasts for driving enthusiasts, looks like nothing else on the road today – and drives like nothing in the segment.