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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.

Next-generation Fiat 500e EV will be all new at 2020 Geneva Motor Show

Fiat's electrified European future begins with the next-generation 500e coming to the 2020 Geneva Motor Show. Maintaining the overall proportions of the current car, everything under the skin will be new, starting with the EV platform. This is the same architecture that would propel a potential production version of the "Affordable But Cool" Centoventi concept that Fiat brought to this year's Geneva Motor Show. Fiat- Chrysler marketing boss Olivier Francois described the new 500e as, "A new 500, totally renewed. A new object. Totally electric. It's kind of an urban Tesla, with beautiful style. Italianess, dolce vita in an electric car. It's the polar opposite of Centoventi." We doubt the Centoventi concept's battery arrangement will debut in the 500e, but that would be cool. The show car's modular battery concept could run for 62 miles on its integrated unit, but more batteries could be added — including one under the seat — for 310 miles of range. Instead, we'd expect Fiat to shoot for something like the Peugeot e-208, which gets a WLTP-rated 211 miles of range. The Italian carmaker doesn't sell the 500e in Europe. Fiat's starting its electric push there with the new 500e because it wants to enter the market at the low end of pricing. That segment is also where the brand happens to be strongest; Autocar wrote that the 500 and Fiat Panda account for a third of the city car market. Since the new Fiat 500 arrived 12 years ago, more than 2 million have been sold in Europe alone. Although an Italian buyer can purchase a Fiat 500 Pop for 14,350 euros (about $16,300), Francois said the average transaction price is 24,000 euros ($27,250). The competition in the urban EV segment sells for around 32,000 euros, leaving Fiat room to make a digestible price jump from what buyers pay now for ICE versions. More competition is on the way, too, with Mini's electric Cooper coming this year, and Honda's rocking little Urban EV soon. Fiat takes an intermediate step later in 2019 when a 500 with a mild hybrid system goes on sale. That model employs a 12-volt belt-driven starter-generator. The current 500 with internal combustion will continue alongside the electric variant with stylistic and technical updates. The coming 500e platform, developed at FCA, is called the City Car powertrain.

Don't buy a 2016 Fiat because the 2017s will be cheaper and better equipped

If you're considering the purchase of a new Fiat, you'll want to hold off for the 2017 model year. At the very least, take note of the following for haggling purposes, because the 2017 model year will bring some significant price cuts. The price cuts were first reported by Automotive News after obtaining dealer pricing information. We reached out to Fiat, and a spokesperson was able to confirm the reduced pricing. He also gave us details on trims and packages. The gist is that the 500 hatch, convertible, and 500L all see notable discounts, and the trim levels across the range have been, well, trimmed. For 2017, Fiat 500 hatchback and convertible will only be available in Pop, Lounge, and Abarth trims. This trim reduction removes the mid-level Turbo model from the lineup, and Fiat's spokesperson confirmed the model's 135-horsepower engine will disappear as well. The good news is that the remaining models all drop significantly in price, including the 160-horsepower 500 Abarth. The Abarth will get a $2,850 price cut to start at just under $21,000 with destination. The 500 Pop and Lounge will both drop $2,000, dropping the Pop to just under $15,000 before destination, and just under $16,000 assuming the destination charges remain $995. In addition, the convertible will simply become a $1,450 option for any 500 model, which will make it a much more affordable proposition than it was when offered as a separate model. The electric 500e is the only model not to see a price cut, and will remain priced at $32,795 after destination charges and excluding tax rebates. The 2017 500L, as well as the 500X, will see available trims shrink to down to Pop, Trekking, and Lounge. The 500L doesn't see price cuts as drastic as those for the smaller 500, but it offers additional content to make up for it. The new Pop gets all the features of the higher-level 2016 Easy, along with a standard automatic transmission. Comparing a 2017 Pop with a 2016 automatic-equipped Easy will show a $1,150 reduction. The Trekking only drops by $235, but it now gets standard heated leather seats, BeatsAudio sound system, satellite radio, and Uconnect. Finally the Lounge drops $1,100 and adds 17-inch wheels, BeatsAudio, Uconnect, and satellite radio. As for the 500X, in addition to the reduced trim levels, it sees additional options. However, it won't get any price cuts. Okay, technically the base 500X Pop will start at $19,995 before destination charges, which is $5 less than the 2016 model.