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Why a Renault-FCA merger could be good news for Nissan, Mitsubishi

TOKYO — Nissan's advanced technologies including platforms and electric powertrains could give it leverage in a merger involving Renault and Fiat Chrysler, thanks to a royalty system it has with the former, two people with knowledge of the matter said. A merged Renault-Fiat Chrysler could face an extra hurdle each time it uses technology developed by Nissan or Mitsubishi Motors, while the two Japanese automakers stand to gain a client in Fiat Chrysler (FCA), one of the people said. Both sources declined to be identified because of the sensitivity of the matter. Nissan's technology, particularly in electrification and emissions reduction, could give it some sway in the $35 billion potential tie-up between Renault and FCA, even as its stake in the newly formed company would be diluted. Currently Renault SA pays less for technology developed by Nissan than the Japanese automaker pays for French technology, a third person said. This has long been a sticking point for Nissan, and an area where Nissan could seek more favorable terms. "Whenever Nissan transfers platform, powertrain or other technology to Renault, there is a margin or royalty which Renault has to pay for use of that tech," one of the people said. "In that sense, FCA, if everything went well, would become another 'client' of ours and that's good. More business for us." A Nissan spokesman declined to comment on its royalty system. The potential Renault-FCA deal has complicated the Japanese automaker's already uneasy alliance with Renault. A further deal with Fiat Chrysler looks likely at least in the near term to weaken Nissan's influence in the 20-year-old partnership. Renault owns a 43.4% stake in Nissan and is its top shareholder. Nissan holds a 15% non-voting stake in Renault and would see that diluted to 7.5% after the FCA deal, albeit with voting rights. The imbalance between the two has long rankled Nissan, which is by far the larger company. Alliance imbalance Renault had previously angled for a merger with Nissan but has been rebuffed by CEO Hiroto Saikawa. Securing benefits from the merger deal will be important for Saikawa, who is grappling with poor financial performance while he struggles to right the company after the ouster of former chairman Carlos Ghosn last year.

Mitsubishi Outlander PHEV Concept-S shows what a facelift can do [w/video]

Sometimes you need a second chance to get things right. Technologically, the Mitsubishi Outlander PHEV is a pretty cool vehicle, with a 2.0-liter four-cylinder and additional electric motors providing more thrust. However, the CUV never really looked the part for all of its innovation. The Mitsubishi designers are taking another crack with the Mitsubishi Outlander PHEV Concept-S at the 2014 Paris Motor Show, and the vehicle shows what a massive improvement some tweaks can make.
The most obvious of these changes is the completely different front end with a more vertical design. The headlights are reshaped with LED running lights outlining them, and the new airdam that puts a massive X right on the front grille in black and chrome with some more LEDs down below. The designers don't stop there and have a major revision to the rear with taillights running all the way across. Inside, there's black wood grain trim and leather seats.
The update takes the CUV from boring to somewhat exciting, and the even better news is that some of these updates might make it to a rumored refresh in 2016 that could even come here. Scroll down to watch Mitsubishi's teaser video for the Concept-S with more views of it and the company's full press release.

Your 2013 Pikes Peak Hill Climb primer: "Donuts at 14,000 feet."

The teams have all set up their pits and paddocks for today's run of the 91st Pikes Peak International Hill Climb, and there's nothing left to do but take a shot at the title. At 8 am Mountain time (9 am EST / 7 am PST), the first of a field of 83 bikes and 63 cars - whittled from an original field of 157 - will race 12.42 miles through 156 turns from the start gate at 9,390 feet to the summit finish at 14,110 feet. The summit is where we'll be all day, having arrived on the media bus at around 5 am and not allowed to come down until the race is finished. If it's anything like last year that could mean a 14-hour day on the top munching on donuts at the summit café, begging for hits of pure oxygen and trying to stay hydrated and warm...
Here are the event with Hyundai, we enjoyed dinner with Rhys Millen got his take on what's happened and what's about to happen. Millen said the issue that caused his engine swap last week was minor, a head gasket (a production part) that was causing a bit of hesitation and a slight drop in top speed. He said it's the first time they've stressed the engines this hard, pushing boost pressures up to 19 psi at altitude, which equates to 25 psi at sea level. Offering testament to the strength of the engines, though, he said that Paul Dallenbach's engine did the entire 2012 drift season as well as Pikes Peak, and it's the engine being used again for the hill climb this year.
We also chatted with Dallenbach, who has come back from that beastly crash last year in the Unlimited category to lead almost every practice day this year in the Time Attack class. Telling us he's happier behind the wheel this year than he has been in 20 years, he asked us, "Know what my dashboard says when I turn the car on? 'Donuts at 14,000 feet.'"