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FCA compromises with France, moving Renault merger bid forward

FRANKFURT/PARIS – Renault directors were preparing to review Fiat Chrysler's $35 billion merger offer on Tuesday, after the Italian-American carmaker resolved differences with the French government overnight, three sources said. The compromise on French government influence over a combined FCA-Renault may clear the way for Renault's board to approve a framework agreement beginning the long process of a full merger, unless new issues surface at the meeting. France, Renault's biggest shareholder with a 15% stake, had been pressing for its own guaranteed seat on the new board and an effective veto on CEO appointments. But after late-night talks with FCA Chairman John Elkann, the French government has accepted a compromise that would see it occupy one of four board seats allocated to Renault, balanced by four FCA appointees, the sources said. Renault would also cede one of its two seats on a four-member CEO nominations committee to the French state, they said. Renault, FCA and the French government all declined to comment on the discussions. The same evening that the compromise was was negotiated, activist hedge fund CIAM wrote to the board of Renault to say it "strongly opposed" a planned $35 billion merger with Fiat Chrysler. Calling the deal "opportunistic," the fund said the current deal terms strongly favored Fiat Chrysler and offered no control premium. (Reporting by Arno Schuetze and Laurence Frost; additional reporting by Giulio Piovaccari in Milan and Simon Jessop; editing by Jason Neely and Rachel Armstrong) Government/Legal Chrysler Fiat Mitsubishi Nissan Renault merger

Mitsubishi still wants to bolster US sedan lineup, investigating options

Mitsubishi looked healthy in 2014 with a nice sales boost for the year, but so far 2015 hasn't been quite so pleasant with news of product delays or outright cancelations. The Japanese brand isn't letting the setbacks get it down, though, and is still planning for the future. Perhaps the biggest recent disappointment was that Mitsubishi and the Renault-Nissan Alliance scuttled plans to bring a South Korean-built, midsize sedan to the US under Mitsu's branding. The scheme was first announced in late 2013 and would have given the Japanese automaker a replacement for the long-retired Galant. According to Automotive News, the decision came because high exchange rates with the Korean won and Japanese yen against the US dollar made the Asian-built vehicle too costly. Mitsubishi isn't throwing in the towel on the possibility of a larger four-door in the US, just yet. One solution might be retooling the company's US factory in Normal, IL. According to Automotive News, the plant current exports over half of the Outlander Sport units that it builds. That capacity could switch to a new sedan, some of which could also be for shipment abroad. The Outlander Plug-in Hybrid is also being delayed until the second quarter of 2015 in the US. The electrified crossover has proven popular in other markets but has seen multiple postponements in going on sale here. In the meantime, there are a few new products coming down the line. The Mirage Sedan is eventually launching in the US, and the Lancer is reportedly getting a refresh soon. News Source: Automotive News - sub. req.Image Credit: Koji Sasahara / AP Photo Plants/Manufacturing Mitsubishi Sedan

Mitsubishi struggling to sell doomed plant due to union workers

Mitsubishi is about to end vehicle production in the US, but the company is having serious problems finding a buyer for its Normal, IL, factory that currently assembles the Outlander Sport. A major sticking point, according to a report by The Wall Street Journal, is the plant's workforce of over 900 United Auto Workers members. The automaker has been trying to find another company to take over the site for months and has set November as the point to stop manufacturing there. The Normal, IL, factory is unique because it's the only plant in the country that's run by a Japanese automaker with a UAW-represented workforce, after starting as a joint venture with Chrysler. That makes Ford, General Motors, and FCA the preferred buyers because they could conceivably take over the union contract. However, the Blue Oval and the General likely aren't interested. According to plant officials speaking to The Wall Street Journal, FCA and some unnamed car companies are potential buyers, but there's absolutely nothing final, yet. Proponents argue that buying the location is cheaper than building a new one. Making matters harder is that the UAW and Mitsubishi are currently negotiating a new union contract, and the factory's next owner might have to take over the deal, according to the WSJ. The workers were ready to vote whether to strike recently, but that was averted when an announcement on the local's webpage said a tentative agreement was expected Sunday. Of course, the Big Three have been experiencing their own, similar issues with crafting deals, too. Related Video: