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Renault-Nissan-Mitsubishi adopts Android infotainment in coup for Google

PARIS — The Renault-Nissan-Mitsubishi carmaking alliance said on Tuesday it will adopt Alphabet's Google Android operating system, handing a victory to the U.S. tech giant as it pushes for a bigger share of the infotainment market. Renault, Nissan and Mitsubishi, with combined sales of 10.6 million vehicles last year, said future models will "integrate Google applications and services" including Maps and the voice-commanded Google Assistant. The move, first reported by the Wall Street Journal, leans more heavily on Big Tech than large or luxury rival carmakers have hitherto been willing to do. Many fear losing control of customer relationships, data and potentially significant future revenue from connected services. Some smaller manufacturers such as Volvo Cars have decided to embed Android Auto in their vehicles. But the scale of the shift by Renault-Nissan-Mitsubishi may cause a broader rethink of costly standalone tech strategies. "Major carmakers earlier were reluctant to do business with Google, but this has now changed," said Jauke de Jong, a research analyst at AFS Group in Amsterdam. "More carmakers could follow suit and partner with Google." Until now, carmakers have largely chosen Linux, Microsoft or QNX software to power infotainment. That yields clunkier platforms they can control, but which offer little scope to add new apps or functionality. Far more than just hooking up a phone The news may spell trouble for certain existing auto-tech suppliers such as mapping specialist TomTom, which counts Renault among its customers. Shares in the Dutch group fell by more than quarter after the announcement. In return for handing Google the infotainment keys, the alliance will bring the full clout of Android's thousands of apps to its brands' lineups — which include a strong contingent of affordably priced, no-frills models for emerging markets. The partnership promises "rich user experiences that are currently available only outside the vehicle or, to a limited extent, by connecting an Android device to supported vehicles," alliance development chief Hadi Zablit said. While many volume carmakers offer infotainment "mirroring" to pair with Apple iPhones or Android smartphones, premium rivals such as BMW and Daimler's Mercedes-Benz are investing heavily in their own operating systems, vocal assistants and connected services.

Japanese automakers welcome North American trade deal, fear what's next

TOKYO — Toyota, Nissan and Mazda welcomed on Tuesday the revised North America trade deal that left Japanese automakers unscathed, but they may face a bumpy ride when Washington and Tokyo hold new talks on over $40 billion of annual U.S. auto imports from Japan. The United States and Canada reached an agreement on Sunday to update the 1994 North American Free Trade Agreement after Washington had forged a separate trade deal with Mexico in August. The updated deal effectively maintains the auto industry's current footprint in North America, and spares Canada and Mexico from the prospect of U.S. national security tariffs on their vehicles. Mazda, which ships cars to the United States from Mexico and Japan, called the deal a "big step forward". Nissan, which makes the cars it sells in the United States locally as well as in Mexico, Japan and other countries, said it was "encouraged" by the agreement. Toyota, Japan's biggest automaker, said it was "pleased" that a basic deal was reached. Other automakers were not immediately available for comment. While the deal has removed the risk that the disintegration of the pact would have posed to automakers, bigger risks loom large for Japanese firms as a chunk of the roughly 7 million cars they sold in the U.S. last year were shipped from Japan, and a trade deal between Washington and Tokyo has yet to be agreed. The United States and Japan last week agreed to begin fresh trade talks, with U.S. President Donald Trump seeking to address Japan's $69 billion trade surplus, of which nearly two-thirds comes from auto exports. Washington is also investigating the possibility of slapping 25 percent tariffs on auto imports on national security grounds, although it has agreed with Japan to put any new tariffs on hold during the talks. Analysts say the United States may take a tougher stance on auto imports from Japan than from its neighbors. "If Japan requests an exemption from the 25 percent tariffs under consideration, Washington could propose a more strict cap on imports than it agreed to with Mexico and Canada," said Koji Endo, senior analyst at SBI Securities. "That would be a risk." This could be a big blow to Japan, as the United States is a key source of revenue for Japanese automakers including Toyota, Nissan and Honda. The U.S. market accounts for a quarter or more of their annual global vehicle sales, and of their total U.S.

Carlos Ghosn's detention extended over fresh allegations

TOKYO — A Japanese court on Friday approved the detention of former Nissan Chairman Carlos Ghosn through April 14 after his latest arrest over financial misconduct allegations, a move that has raised questions among legal experts. The former star executive was taken into custody Thursday over fresh allegations that $5 million sent by a Nissan Motor Co. subsidiary and meant for an Oman dealership was diverted to a company effectively controlled by Ghosn. Ghosn spent nearly four months in detention and was just released last month after meeting stringent bail conditions while he awaits trial over earlier allegations that he under-stated his compensation in financial documents, had Nissan shoulder his personal investment losses and made dubious payments to a Saudi businessman. The Tokyo District Court on Friday approved the initial 10-day detention request from prosecutors, who can seek another 10-day extension before needing to file charges against Ghosn, release him or accuse him of fresh misconduct that needs investigating. Stringing out a suspect's arrest for the full 20 days and then raising fresh accusations is common in Japan, where it is known as a "rearrest." Critics say it allows suspects to be grilled by the authorities, resulting in some signing confessions to crimes they never committed. But it is rare for a suspect to receive bail and then be taken back into custody. Ghosn, 65, was first arrested Nov. 19 and released March 6 on 1 billion yen ($8.9 million) bail, after two previous rearrests. He says he is innocent of all allegations. Prosecutors argue the latest allegations are different from the previous ones, but his legal team says they are part of the same scenario of alleged wrongdoing. In demanding the latest detention, prosecutors argued Ghosn may tamper with evidence related to the fresh allegations. Prosecutors had earlier fought against bail for Ghosn, a citizen of France, Brazil and Lebanon, arguing he was a flight risk. Ghosn's lawyer Junichiro Hironaka pointed out prosecutors have already raided Ghosn's property and taken everything, leaving little to tamper with.