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Renault, Nissan limit French government interference

Renault and Nissan are taking action to limit the influence that one can exercise over the other's operations. The measures, announced by both automakers after meetings of their respective boards in Paris and Tokyo, aim to keep each other at arm's length. But more than that, they seek to cap the degree of influence which the French government can bring to bear on either automaker. The steps are being taken in response to investment moves by the French state. While the government's investment arm – known as the Agence des Participations de l'Etat (or state participation agency) – previously controlled 15 percent of Renault's shares, it increased its holdings this April to 19.73 percent. The action sparked concerns at Renault that the French government would attempt to dictate operating procedures to both automakers, potentially to favor production in France over other locations. Given that Renault holds a 43-percent stake in Nissan, the Japanese automaker grew concerned over potential French state interference as well. To assuage those concerns, Renault, Nissan, and the French government came to an agreement with three vital clauses. Most importantly, despite its nearly 20-percent holdings, the French government will be granted only 17.9 percent of voting rights in Renault (to be extended up to 20 percent under certain exceptional circumstances). Renault (and by extension the French government) will also be prevented from interfering in Nissan's governance. With those measures in place, Nissan will not seek more voting rights based on the 15-percent stake which it, in turn, holds in Renault. Having successfully concluded the deal and hedged against the threat of government interference, the Renault board reasserted its confidence in Carlos Ghosn. Through the unique terms of their alliance, Ghosn serves as chairman and CEO of both Renault and Nissan. The two cooperate closely and share resources extending far beyond their chief executive, but remain distinct companies rather than merge, as Fiat and Chrysler have. Renault Board approves alliance stability covenant between Renault and Nissan As early as 16th April 2015, the Renault Board of Directors unanimously reiterated that the sustainability, success and resilience of the Alliance since its very inception in 1999 were based on a balance of shares held by Renault and Nissan.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

Nissan Leaf and the future of auto shows | Autoblog Podcast #525

Related: We obsessively covered the Frankfurt Motor Show — here's our complete coverage On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Associate Editor Joel Stocksdale. The pair discuss the long-awaited reveal of the second-generation Nissan Leaf as well as the Alfa Romeo Giulia and BMW M550i that recently passed through the office. They also preview the 2017 Frankfurt Motor Show and discuss the future and relevance of auto shows. The rundown is below. Remember, if you have a car-related question you'd like us to answer or you want buying advice of your very own, send a message or a voice memo to podcast@autoblog.com. (If you record audio of a question with your phone and get it to us, you could hear your very own voice on the podcast. Neat, right?) And if you have other questions or comments, please send those too. Autoblog Podcast #525The video meant to be presented here is no longer available. Sorry for the inconvenience.Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Topics and stories we mention Rundown Nissan Leaf reveal Frankfurt Motor Show preview What we're driving: Alfa Romeo Giulia and BMW M550i Unpopular opinion: the relevance of auto shows Spend my money Feedback Email – Podcast at Autoblog dot com Review the show on iTunes Image Credit: BMW, Nissan Green Podcasts Frankfurt Motor Show Alfa Romeo BMW Nissan Hatchback Electric Luxury Sedan alfa romeo giulia