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To survive in India, a diminished Nissan bets big on a small SUV

NEW DELHI — By any measure, Nissan has had a dreadful run in India. A push to revive its lower-end Datsun brand flopped, sales have slumped 60% over the past five years, and its sole plant in the country is operating way below capacity. But the amount of money and energy that Nissan — battered by scandal and expecting a record $4.5 billion annual operating loss worldwide — will spend to turn its fortunes around in India will hinge on the sales of one vehicle, its new Magnite compact SUV. The SUV may also determine how much heft Nissan will wield as it and alliance partner Renault thrash out their respective roles in the Indian market. Unveiled this month and due to be launched either late this year or early 2021, the Magnite will be Nissan's first new vehicle in India in two years. It's expected to have a 1.0-liter three-cylinder engine with 72 horsepower, and a turbocharged version of that engine making 100 horsepower. It will have features such as an 8-inch touchscreen, cruise control, and a 360-degree camera. Moreover, it will be just one of three Nissan-branded models in the market after two others were pulled in April when tougher emission rules kicked in. "Magnite will buy Nissan a couple of years to figure out a plan for India and the SUV's success will determine whether it invests more or scales down operations," said one source. A second source called the sport-utility vehicle Nissan's "last hope" to revive the brand in India. Japan's No. 2 automaker has, however, no plans to withdraw from India, where it has invested over $800 million, and discussions about strategy are ongoing, the sources said. They were not authorized to speak to media and declined to be identified. The Datsun brand is likely to be phased out as part of a global overhaul, they added. Nissan's only other models in India are three Datsun cars. Nissan said in a statement to Reuters it is committed to the Indian market and has a well-defined strategy for "a sustainable and profitable business". It declined to comment on sales goals for the Magnite.   Who will lead? Nissan's internal plans call for sales of 1,500 to 2,000 Magnites a month, the first source said — which if realized would exceed the average India monthly sales it achieved last business year with seven models. The SUV will be priced "aggressively," the sources said without elaborating.

FCA-Renault merger faces tall odds delivering on cost-cutting promises

FRANKFURT/DETROIT — Fiat Chrysler Automobiles and Renault promise huge savings from a mega-merger, but such combinations face tall odds because of the industry's long product cycles and problems translating deal blueprints into real world success, industry veterans told Reuters. BMW's 1994 purchase of Rover, and Daimler's 1998 merger with Chrysler both made sense on paper. The companies promised to hike profits by combining vehicle platforms and engine families. Both combinations proved unworkable in reality, and were unwound. Renault and Nissan, which have been in an alliance since 1999 designed to share vehicle components, have only managed to use common vehicle platforms in 35% of Nissan's products despite an original target of 70%, according to Morgan Stanley. FCA and Renault have raised the stakes for themselves by ruling out plant closures. That increases the pressure to achieve more than $5 billion in promised annual savings from pooling procurement and research investments. The two companies have yet to fill in many of the blanks in the merger plan put forward by Fiat Chrysler. Renault's board is expected to act soon to accept the proposal, but that would lead only to a memorandum of understanding to pursue detailed operational and financial plans. A final deal and the legal combination of the two companies could take months to complete if all goes well. Pressure to cut automotive pollution is driving the latest round of consolidation. Automakers are looking at multibillion-dollar bills to develop electric and hybrid cars and cleaner internal combustion engines. Fiat Chrysler and Renault are betting they can design common electric vehicle systems, then sell more of them through their respective brands and dealer networks, cutting the cost per car. Developing all-new electric vehicles can bring more opportunities to share costs from the outset, industry experts said. "With the emergence of connected, autonomous, electric and shared vehicles, carmakers face immediate investments, so new opportunities for sharing costs have emerged," said Elmar Kades, managing director at Alix Partners. However, most electric vehicles lose money. This is a challenge for city car brands in Europe in particular. Both Renault and Fiat rely heavily on this segment for sales.

2013 Nissan Pathfinder: June 2013

When we say that our long-term 2013 Nissan Pathfinder has been busy, we mean it. Want proof? In the past month, the big, brown Nissan was only idle enough for us to take it in for its 11,500-mile routine service and to shoot a couple of new photos of the long-termer in Detroit.
Most recently, the Pathfinder spent a few weeks in the hands of AOL Autos' executive editor Sharon Carty, who used the three-row CUV to haul her entire family from Detroit to New Jersey and back... twice. That's a pretty serious amount of miles, but it gave Sharon a really solid look into how the vehicle holds up for the needs of a family with kids of different ages.