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Nissan, Renault in talks to merge as one company

Nissan and Renault have been tied together as an alliance for nearly 20 years, but now the Japanese and French automakers are discussing whether to merge. Bloomberg, citing unidentified sources familiar with the confidential talks, reports that the idea is to form a larger, single publicly traded company to better compete against giants like Toyota and Volkswagen. It would also mark the end of the alliance that first began in 1999 and also includes Mitsubishi, in which Nissan acquired a controlling interest in 2016. A full merger would help the companies pool resources to develop electric vehicles, autonomous vehicles and car-sharing services. It would involve Nissan giving Renault shareholders stock in the new company, with Nissan shareholders also gaining shares in the new company, Bloomberg reports. The new company would be run by Carlos Ghosn, the current chairman of both companies. But any such merger, as you might expect, would be complicated, in part by geopolitics. The French government owns a 15-percent stake in Renault, and both the French and Japanese governments might be reluctant to let go of their respective home-grown brands. Currently, Renault owns a 43-percent stake in Nissan, while Nissan owns 15 percent of its French partner. Reuters reported recently that Ghosn proposed buying most of the French government's stake in Renault as part of plans for a closer tie-up. The Renault-Nissan-Mitsubishi alliance already has been working to establish a $200 million mobility tech fund to invest in startups, a reflection of how seismic changes in the auto industry have left many legacy companies scrambling to stay current. Nissan in 2016 paid a reported $2.3 billion to acquire 34 percent of Mitsubishi in order to share platforms, technology, manufacturing and other resources. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: Patrick T. Fallon/Bloomberg Earnings/Financials Government/Legal Green Mitsubishi Nissan Renault car sharing merger

Carlos Ghosn's wife appeals to President Trump to help her husband

LONDON — The wife of former Nissan chairman Carlos Ghosn urged U.S. President Donald Trump to raise her husband's case with Japan's prime minister at a summit of world leaders later this month. "I'd like President Trump to speak to Prime Minister Abe about fair conditions, fair trial conditions and to let me speak to my husband and also to respect this presumption of innocence until proven guilty," Beirut-born Carole Ghosn, who has a U.S. passport, told the BBC. Shinzo Abe is due to host other leaders of the Group of 20 economies in the Japanese city of Osaka on June 28-29. In April Carole Ghosn called on the French government to do more to help her husband. Carlos Ghosn, who holds French, Lebanese and Brazilian citizenship, is facing financial misconduct charges and has said he is the victim of a boardroom coup, accusing "backstabbing" former colleagues of conspiring to oust him as Nissan chairman. Carole Ghosn said she had not spoken to her husband since he was re-arrested on April 4 before being released on bail three weeks later. "They told him one of the bail conditions, the restrictions, is he isn't allowed to speak to me or talk to me, which I find inhumane," she said. "All of this could have been dealt with internally within the company. This didn't need to go this far and on top of it my husband is innocent and time will prove the truth." (Writing by William Schomberg, editing by Louise Heavens) Government/Legal Mitsubishi Nissan Renault

Mitsubishi fuel economy scandal will result in $1.39 billion loss

The fuel economy scandal revealed a couple months ago will cost Mitsubishi Motors a pretty penny. According to The New York Times, the Japanese automaker predicted the fiscal year 2016 will result in a loss of 145 billion yen, or $1.39 billion. We won't know for sure until March rolls around. The prediction is even more striking when compared to Mitsubishi's performance during the last few years. It will be Mitsubishi's first reported loss in eight years. In 2014, Mitsubishi reported a global profit of $1.2 billion, which doubled the profits of the previous year, and in the spring of 2015 the US arm of the manufacturer reported its first profits in seven years – $4.18 million. For a little while there, it seemed like things were looking really good for Mitsubishi, but past flaws caught up with it. Some of the models built have had their fuel economy readings rounded by as much as 15 percent, due to the way running resistance is calculated in laboratory conditions. Nissan swept in to buy one third of Mitsubishi, and under the Renault-Nissan alliance it is likely Mitsubishi will be put on a crash course to clear its name and start turning a profit again. But the bad publicity caused by the scandal will probably mean it'll be far in the future. Related Video: