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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.

2014 Nissan Leaf EVs recalled for missing welds

The Nissan Leaf has been recalled before, for problems with the passenger-side airbags. Early models of the car has also had start-up issues, but those did not lead to a recall. Today, we're learning about another problem with the world's most popular electric vehicle. In April, the National Highway Traffic Safety Administration issued a recall of a small number of 2014 model year Leaf EVs - just 211 units that were made between February 28 and March 12 of this year – and reminded the world about it this morning with a Tweet. The problem, NHTSA says, is that, "the front structural member assembly may be missing welds," and that means that the car's structural integrity could be compromised in a crash. You don't say. Starting in the middle of June, Nissan will look at the vehicles that could be missing welds and offer replacements for free. If you have a potentially affected vehicle, Nissan should be contacting you soon, or you can call the automaker at the number listed below. Report Receipt Date: APR 16, 2014 NHTSA Campaign Number: 14V192000 Component(s): Potential Number of Units Affected: 211 Manufacturer: Nissan North America, Inc. SUMMARY: Nissan North America, Inc. (Nissan) is recalling certain model year 2014 LEAF vehicles manufactured February 28, 2014, through March 12, 2014. The front structural member assembly may be missing welds, which could reduce the structural integrity of the vehicle if the vehicle is involved in a crash. As such, these vehicles fail to meet the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 208, "Occupant Crash Protection," and 305, "Electric-Powered Vehicles: Electrolyte Spillage and Electrical Shock Protection." CONSEQUENCE: Missing welds may effect the vehicle's integrity in the event of a crash, increasing the risk of injury to the vehicle's occupants. REMEDY: Nissan will notify owners, and dealers will inspect to see if any of the welds are missing. Any vehicle missing welds will be replaced, free of charge. The recall is expected to begin by mid-June 2014. Owners may contact Nissan at 1-800-647-7261. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Nissan union wants French to stop meddling with Renault alliance

Nissan is getting some unexpected reinforcements in its ongoing battle with the French government over its involvement in Renault. Its Japanese union, which has traditionally been a very hands-off entity, issued harsh criticism for the French government's attempts to assert control over its alliance partner. According to Bloomberg, this is the first time in 16 years that Nissan's union has weighed on the company's affairs, and it's stating its position on the matter in no uncertain terms. The union called France's attempt at scoring double voting rights within Renault "unacceptable and against the intended spirit of the Alliance." "We support the numerous attempts of Nissan to engage with the French government to find a balanced and constructive solution that will benefit and strengthen the Alliance," the union said in a statement obtained by Reuters. It's unclear what impact the union speaking out will have on the current power struggle between Renault-Nissan CEO Carlos Ghosn (shown above) and the French government, but we doubt it'll contribute to any quicker of a conclusion. Related Video: News Source: Reuters, BloombergImage Credit: Itsuo Inouye / AP Government/Legal Nissan Renault France renault-nissan alliance