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France tries to dodge blame for blowing up FCA-Renault merger deal

PARIS — France sought to fend off a hail of criticism on Thursday after it was blamed for scuppering a $35 billion-plus merger between carmakers Fiat-Chrysler and Renault only 10 days after it was officially announced. Shares in Italian-American FCA and France's Renault fell sharply in early trading after FCA pulled out of talks, saying "the political conditions in France do not currently exist for such a combination to proceed successfully." French finance minister Bruno Le Maire said the government, which has a 15% stake in Renault, had engaged constructively, but had not been prepared to back a deal without the endorsement of Renault's current alliance partner Nissan. Nissan had said it would abstain at a Renault board meeting to vote on the merger proposal. However, a source close to FCA played down the significance of Nissan's stance in the discussions, believing French President Emmanuel Macron was looking for a way out of the deal after coming under pressure at home. Context The FCA-Renault talks were conducted against the backdrop of a French public outcry over 1,044 layoffs at a General Electric factory. The U.S. company had promised to safeguard jobs there when it acquired France's Alstom in 2015. The collapse of the deal, which would have created the world's third-biggest carmaker behind Japan's Toyota and Germany's Volkswagen, revives questions about how both FCA and Renault will meet the challenges of costly investments in electric and self-driving cars on their own. The merger had aimed to achieve 5 billion euros ($5.6 billion) in annual synergies, with FCA gaining access to Renault's and Nissan's superior electric drive technology and the French firm getting a share of FCA's lucrative Jeep and Ram brands. FCA has long been looking for a merger partner, and some analysts say its search for a deal is becoming more urgent as it is ill-prepared for tougher new regulations on emissions. It previously held unsuccessful talks with Peugeot maker PSA Group, in which the French state also owns a stake. French budget minister Gerald Darmanin said the door should not be closed on the possibility of a deal with Renault, adding Paris would be happy to re-examine any new proposal from FCA. "Talks could resume at some time in the future," he told FranceInfo radio.

Renault's push for more affordable EVs has global implications

The Renault K-ZE is a small electric car that signals a big change in how the French automaker plans on bringing electric vehicles to the masses. Set to go on sale in China beginning in 2019, the K-ZE is meant to have the design of a sport-utility vehicle, but it's on a supermini-sized frame. While it's set to arrive in Europe by 2021, this petite EV could eventually impact electric sales here in the U.S., too. That's because Nissan, maker of the Leaf EV, is part of the Renault-Nissan-Mitsubishi Alliance, a three-pronged automaker with a huge global presence. In China, however, the Renault brand has been absent from the country's booming market for electric vehicles — driven in large part by government mandates to combat air pollution by promoting cleaner, zero-emission cars and trucks in cities. Speaking ahead of the K-ZE's debut this week at the 2018 Paris Motor Show, Carlos Ghosn, the chairman and CEO of Group Renault, stated the company "was a pioneer and is the European leader in electric vehicles." To this, he added the K-ZE is meant to have global reach and bring costs down for the consumer. "We are introducing Renault K-ZE, an affordable, urban, SUV-inspired electric model combining the best of Groupe Renault: our leadership in EV, our expertise in affordable vehicles and in forging strong partnerships," said Ghosn. In China, the K-ZE will be manufactured as part of a joint partnership in cooperation with Renault, Nissan and the Chinese automobile firm Dongfeng Motor Group. The range of the K-ZE is expected to be about 150 miles per charge, or roughly the current range in the 2018 Leaf EV. Except the K-ZE is almost three feet shorter than the Leaf, which means Renault is getting a lot more range from a smaller and lighter amount of batteries. While a car this size would be too small for the U.S. market, the technology beneath this teeny hatchback/SUV is certain to make an appearance here in the years ahead. At the 2018 Geneva Motor Show, Nissan provided a hint of its future European EV plans, courtesy of the IMx Kuro Concept. This edgy-looking electric crossover is a good indication as to the design direction of Nissan's next range of electric crossovers and SUVs over the next 3-5 years — look for the design and tech to similarly migrate stateside.

Nissan Zeod RC crash test looks like crushing the tip on a pencil

Nissan has already showed us the 1.5-liter, three-cylinder engine 400 horsepower and 280 pound-feet of torque, augmented by an electric motor, that sits in back of the ZEOD RC headed for the 24 Hours of Le Mans. At the ZEOD RC's other end is a carbon fiber crash structure that has to be tested against an immovable object, and Nissan has seen fit to show us that, too.
You know what to expect if you've seen a crash test before, but the really pointy nose on this car reminds us of a Faber Castell HB pencil being sent to its death. Better yet, it's in slow motion, and you can watch it below.