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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.

Nissan teases Sao Paolo CUV concept, production future likely

Back in 2012 at Brazil's São Paulo Motor Show, Nissan showed off an angular subcompact crossover concept, Extrem, that seemed to to portend the future of the Nissan Juke. Now, the Japanese automaker is teasing an as-yet-unnamed CUV concept for this year's show. The new showcar, set for an October 28 unveiling, is expected to be a closer-to-production version of the Extrem ethos.
Why should we care? Autoblog has reason to believe that this vehicle is under consideration for global distribution. The production Extrem - or whatever it ends up being called - is likely to be positioned size-wise in between the Juke and the recently upsized Rogue, offering more space and still-adventuresome styling, yet at a less expensive price. If accurate, that sounds like the production model will be a fair bit larger than the conceptual Xtrem, which was built atop a modified version of Nissan's V-platform, a model that underpins its March supermini (and speaking of the March, Nissan has also teased what looks to be a sporty concept version of it for the Brazilian show, too).
It's important to note that Nissan already has a bustling small CUV portfolio globally, what with its popular Qashqai / X-Trail models in markets beyond ours. There continues to be persistent rumors that Nissan is considering bringing over the Qashqai, as well, a model seemingly already quite close in size and execution to the Rogue. Despite this, Nissan has shown no hesitation in exploring every niche of the burgeoning CUV market, and while not every derivative has been a success, models like the Juke have rewarded the company's bravery with handsome sales.

Datsun expands low-cost revival with new Mi-Do in Moscow [w/video]

Those who were disappointed when Datsun changed its name to Nissan over three decades ago may have been pleased to see the marque revived last year, even as a budget brand. Nissan's counterpart to its ally Renault's Dacia budget brand, Datsun has been steadily expanding its lineup of low-cost transportation for developing markets with the debut of the Go hatchback in India, the Go+ minivan in Indonesia and the On-Do sedan in Russia. And now it has returned to Moscow to reveal its fourth model, the Mi-Do.
Based closely on the On-Do sedan (which itself is based on the Lada Granta) the Mi-Do takes on a five-door hatchback bodystyle but with no more frills. It uses the same front-drive chassis with the same wheelbase as the sedan, but its chopped tail makes it a good foot and a half shorter overall. Into that compact shape, Datsun has fitted dual airbags, ABS and... well, that's about it. It's got a 1.6-liter, eight-valve inline-four kicking out a grand total of 87 horsepower to either a five-speed manual or a four-speed automatic. Bare bones, this is.
While delivery of the first On-Do sedans commences next month (with the first example going to an IT specialist in Omsk), the Mi-Do is set to begin delivery early next year. Scope out the video and press release below from the Mi-Do's reveal at the Moscow Motor Show.