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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.

Mexican police seize engine-powered drug cannon

It seems like we're always hearing about new ways in which people are trying to smuggle things into the US from Mexico - including simply driving over the wall. Case in point? Mexican police have found yet another way criminals are attempting to get drugs over the border. Mexicali police have seized what looks to be either a Mitsubishi Mighty Max or Dodge Ram 50 pickup, equipped with what is essentially an oversized spud gun in the bed used to shoot marijuana over the border.
Constructed from a metal tank and a large plastic pipe, The Guardian reports that this drug cannon actually uses a car engine to build up enough air pressure to launch up to 13 kilos of marijuana at a time. Mexicali police were alerted to this truck when their US counterparts found drug packages on this side of the border. As of yet, there is no word as to how the vehicle was caught and whether any arrests resulted.

Mitsubishi Engelberg Tourer concept is a 4WD plug-in hybrid

Mitsubishi has finally taken the wraps off its strangely named Engelberg Tourer crossover concept in Geneva, revealing a twin-motor, four-wheel-drive plug-in hybrid with some nifty off-road capabilities and connected-car technology. Named for a Swiss ski resort famous for its unmarked, backcountry terrain, the Engelberg Tourer is a sporty-looking crossover that could preview a new Outlander. It features plenty of side creasing, an upright front end, interesting running lights and that unique roof box cap with integrated fog lamps and highly reflective strips of chrome along the sides. Mitsubishi says the crossover has an all-electric range of more than 70 kilometers, or around 43 miles, at least on the European WLTP cycle, and a combined gasoline-electric range of more than 700 km (435 miles). The Engelberg — users will inevitably make comparisons to the singer Engelbert Humperdinck, as does Google's autofill function — benefits from established and advanced Mitsubishi technologies. It uses the twin-motor PHEV system developed for the Outlander PHEV and improves it, with high-efficiency motors at the front and rear axles and a 2.4-liter gasoline engine in a series hybrid setup, acting as a generator. It uses active yaw control first developed for the Lancer Evolution series to split torque between the front and rear wheels, or between the front wheels alone, and matches it with a super all-wheel control system to improve performance and stability. The concept also features improved anti-lock braking at each wheel and active stability control to reduce wheel slip on snow-covered roads. The onboard navigation system takes the destination entered by the driver and factors in weather, temperature, topography, traffic and road conditions to choose the ideal drive mode and tailor torque split through drive battery management and the super all-wheel control system. Inside, Mitsubishi fashioned a spacious interior bedecked in white panels and seating material and black contrasts. There's also a roof box that houses fog lamps and front and rear bumper under guards. Mitsubishi also is demonstrating the Dendo Drive House, its version of a vehicle-to-home system that allows electric or plug-in hybrid vehicles to generate, store and share energy with a home. Mitsubishi says the service will be offered through dealerships in Japan and Europe later this year. Related Video: