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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 could add 'Evo' crossover

You should have done this years ago, but in case you haven't, open your dictionaries to the word "Sacred" and tear the entire page out. Done? Good. Now, to continue... With the traditional sedan-based, gas-powered Mitsubishi Lancer Evolution using its four driven wheels to enter the grave at the end of this year, Auto Express reports that it's possible that Mitsubishi could use the "Evo" appellation on a high-performance, all-wheel-drive version of the Outlander Sport (called the "ASX" in Europe). This has been more than a year in the making, in truth. Last year Mitsubishi said that another "high-performance four-wheel-drive gasoline-powered sedan" wasn't going to happen, and that what did come would be a result of exploring "the possibilities of high-performance models that incorporate electric vehicle technology." As Auto Express sees it, the next-generation Outlander Sport will launch initially with four-wheel drive, followed by a two-wheel-drive, plug-in hybrid model. The company's UK chief said that an Evo-worthy model "isn't a huge jump" from there, once the bread-and-butter segments are satisfied. Mitsubishi is doing much better financially, and this would be one of the experiments it could now afford to try out. An Outlander Sport Evo isn't done and dusted - there's no business case for it yet, and who knows, a potential Evo version could be a UK- or Europe-only trim - but "a lot of senior management" is discussing it.

Mitsubishi says 2016 Outlander PHEV for US 'will be completely different'

While attending the Pikes Peak International Hill Climb with Mitsubishi we got a chance to speak to three Mitsubishi Motors North America (MMNA) executives about the Outlander PHEV, how the brand is strengthening its lineup and how it plans to promote that.
The Outlander PHEV that's quickly and quietly rolling off lots in Japan, Europe and Australia right now is not the same model we're going to get when it arrives in Fall 2015, with MMNA Executive Vice President Don Swearingen and US PR chief Alex Fedorak telling us that "it will be completely different." It can probably be viewed as the next-generation vehicle, part of the "major restyle in 2016" that will reskin the model in the new design language being applied to the brand's crossovers.
Its hybrid system is being tuned for more refinement, and the same work being done on the interior.