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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.

2018 Mitsubishi Eclipse Cross vs. small crossover SUVs: How they compare on paper

In the midst of the crossover SUV boom, each traditional size segment has become saturated. As a result, automakers are beginning to fill the gaps that separate classes, giving us some interesting in-between options. The all-new 2018 Mitsubishi Eclipse Cross jumps right into one of those in-between categories bookended by compact and subcompact crossovers. It's a niche that offers more space and feature content than the smallest vehicles, with an extra dose of style and a lower price than bigger ones. Because of the Eclipse Cross' in-between nature, though, there's not really an obvious direct competitor. As such, we've selected a diverse group of small crossovers that are similar to the Eclipse Cross in some but not all key areas: size, price, feature content, style and likely buyers. The 2018 Subaru Crosstrek, 2018 Toyota C-HR and 2018 Nissan Rogue Sport each have elements in common, but are different enough to provide useful points of comparison. A chart of specifications and key standard features is shown below, followed by more in-depth analysis. And if you wish to compare these crossovers with others not listed, be sure to check out our comparison tools. Engines and Drivetrains One of the Eclipse Cross' biggest advantages in this segment will be its engine. Subcompact crossovers, including the other three we've chosen, are sluggish to say the least. This new Mitsubishi should be different as it packs a turbocharged 1.5-liter four-cylinder that belts out a whopping 184 pound-feet of torque. We say whopping, because the C-HR, Crosstrek and Rogue Sport all have between 139 and 147 pound-feet. Horsepower is similarly unimpressive at just 152 horsepower - the same as the Crosstrek - but that torque should make passing and on-ramp runs much more satisfying. The appeal of crossovers for many people is the availability of all-wheel-drive, and this is where the Subaru gets an advantage. Like with all Subarus that aren't a BRZ, the Crosstrek has standard all-wheel drive. The Mitsubishi comes close, making all-wheel drive standard on every trim level except the very base ES trim level. On the Rogue Sport, all-wheel drive is an option on all trim levels. Depending on where you live, though, being able to have front drive on a high-trim crossover could be a plus because it will save some money and improve fuel economy. The C-HR loses this battle as it's only available with front-wheel drive.

2016 Mitsubishi Outlander priced from $23,845

Mitsubishi is on a slight upswing in the US recently after its first, though small, profit in the country in seven years. The company is now reportedly looking to boost its product lineup, and one of the first big changes in a while comes with the launch of the refreshed, 2016 Outlander. Even with significant upgrades for the three-row crossover, the price is actually $200 lower than last year to start at $23,845 (including $850 destination on all models). The most obvious tweak for the 2016 refresh is the Outlander's attractive, all-new front fascia. The crossover now wears a grille that mixes gloss black and chrome slats, and the whole design is outlined in curving chrome that leads down to accentuate the foglights. At the rear, the upgrades aren't quite as drastic, but the addition of LED taillights lends a more modern look. However, the changes are more than skin deep, and Mitsubishi also claims over 100 engineering and design modifications for the vehicle. The engines carry over from last year, and most models get a 2.4-liter four-cylinder with 166 horsepower and 162 pound-feet of torque. It's hooked up to a revised CVT that Mitsubishi claims offers better acceleration and torque delivery. Buyers can choose between either front- or all-wheel drive. The other option is the top-spec GT trim that comes with a 3.0-liter V6 making 224 hp and 215 lb-ft, a six-speed automatic, and all-wheel drive. MITSUBISHI MOTORS ANNOUNCES REDUCED PRICING FOR NEW 2016 OUTLANDER June 02, 2015 — CYPRESS, Calif. Starting MSRP of only $22,995; a $200 reduction in price from the previous model year The 2016 Outlander features Mitsubishi's new dynamic design language and over 100 engineering and design improvements Mitsubishi Motors North America, Inc. (MMNA) today announced pricing for the U.S. version of the new 2016 Mitsubishi Outlander seven-passenger crossover. With a starting MSRP of only $22,995, the 2016 Outlander has a $200 lower starting MSRP than the previous model year, which is notable when considering the amount of design and engineering improvements incorporated into the vehicle. "The 2016 Outlander has a dynamic new design and a long list of engineering upgrades—it literally looks, drives and feels like an entirely new vehicle," said MMNA Executive Vice President, Don Swearingen.