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Strains between France and Italy risk Renault-FCA merger

PARIS/ROME — Fiat Chrysler's proposed $35 billion merger with Renault has cheered investors, won conditional support from Paris and Rome and even earned cautious backing from trade unions. Beneath this veneer, however, the bold attempt to create the world's third-largest carmaker risks becoming rapidly embroiled in the fraught relationship between France's europhile President Emmanuel Macron and Italy's euroskeptic leaders. For while Deputy Prime Minister Matteo Salvini hailed the proposal as a "brilliant operation," Italy's creaking, state-subsidized Fiat factories are likely to bear the brunt of any production-related cost savings. FCA and Renault said this week that more than 5 billion euros ($5.6 billion) of annual savings would come mainly from combining platforms, consolidating powertrain and electrification investments and the benefits of increased scale. Salvini and France's Finance Minister Bruno Le Maire, who called the deal a "good opportunity" to build a European industrial champion able to compete with China and the United States, have both said they want guarantees on local jobs. "It's not every day that I agree with Salvini," said Le Maire, whose government appears to hold the trump cards. When it comes to where any job cuts fall, France will be helped by its existing 15 percent holding in Renault, whose superior efficiency at its five French plants makes it better placed to handle a supply glut, the demise of the petrol engine and the investments needed for electric and autonomous vehicles. "It will take many, many years to find real savings, and ugly political and operational realities can often swamp the potential of such new entities," Bernstein analyst Max Warburton said of the FCA-Renault plan to rival Japan's Toyota and Germany's Volkswagen. Advantage France? As well as Italy's government having to cope with the aftermath of European elections, which coincided with news of the FCA-Renault plans, political leaders in Rome were only informed shortly before the deal was made public, an FCA source said. This contrasted with the way the French government was treated, with Fiat Chrysler Chairman John Elkann, a fluent French speaker, letting it know of his merger proposal to Renault weeks ago, a French government official said.

Interest in an Infiniti EV is muted, to say the least

More than a quarter-million people have bought an electric vehicle from the Renault-Nissan Alliance. When it comes to Nissan's Infiniti luxury nameplate, though, there's not a lot of confidence. The Alliance doesn't have much hope that the badge will add to that total anytime soon. So says Emirates 24/7 in its report that Infiniti is planning on opening two showrooms in Abu Dhabi. Models such as the QX80 SUV, the Q70 sedan, and the Q50 will be shown off to those looking to live the high life, Infiniti style. But company executives told the publication that no battery-electric Infiniti models would be in the works until at least the end of the decade? The reason? Lack of demand. It's a far cry from three years ago, when a concept version of the Infiniti LE electric vehicle was shown off at the New York Auto Show. The model boasted 134 horsepower and 240 pound-feet of torque as well as wireless-charging capabilities. It was about the size of the Infiniti G sedan. At the time, the automaker's executives were estimating that car would hit the market by 2014. Those plans didn't come to fruition, obviously. As for the Alliance, Renault and Nissan celebrated the sale of their 250,000th electric vehicle this past summer. And while the lion's share of those were in the form of the Nissan Leaf, the 250,000th vehicle was actually a Renault Zoe that was bought by a computer engineer in Bordeaux, France. That's a long way from the UAE, and a long way from an Infiniti EV.

2014 Nissan GT-R Track Edition loses rear seats, gains performance

Nissan is adding yet another tier to the GT-R hierarchy for 2014 with the GT-R Track Edition. Debuting at the 2013 Chicago Auto Show, the bruiser ditches its back seat in the quest for a lower curb weight, and a set of more seriously bolstered front buckets keep occupants planted once the going gets twisty. The Nürburgring-developed Track Edition offers an integrated carbon fiber front splitter with brake cooling ducts as well as an even harder-core suspension. Engineers swapped the stock bits for special Bilstein DampTronic shocks and paired them with more aggressive springs.
The engine still delivers 545 horsepower and 463 pound-feet of torque and still relies on the split-second quickness of the standard GT-R's six-speed dual-clutch transmission. Expect to see just 150 examples of the 2014 Nissan GT-R Track Edition land on American shores starting this May. In the interim, check out the full press release below for more information.