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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.

A realistic approach to fixing Mitsubishi

There are going to be a lot of words written about what Nissan needs to do with Mitsubishi in the coming months and years in the interest of turning the brand around. After Nissan's purchase of a controlling stake in the diamond star brand, there's been more interest in Mitsubishi thanks to the potential of platform sharing and plenty of cash from Nissan-Renault to get the juices flowing again. But, while some have been doing their best to advocate for the return of the 3000GT, Evolution, and even the Starion - Many of these posts forget the reality of the market we live in today. As much as we like to look back fondly at the sports coupes of the '90s, a byproduct of the insane cash flows all the Japanese manufacturers had at the time, the reality of today puts a much greater emphasis on what is most-boring; Crossover SUVs, alongside mid-size and compact sedans. We do need to ask a fundamental question, how much Mitsubishi is enough to be able to continue to call the cars Mitsubishis? Aside from slight product revisions and reconfigurations, Mitsubishi (at least in North America) has been largely dependent on the same GS platform and 4B1 engines that date back to their long-time partnership with Chrysler (and Hyundai) in the mid '00s. Admittedly, the chassis and engines have served the company well, underpinning a wide variety of vehicles sold around the world, and seeing quite a few revisions to at least attempt to keep products competitive. But, the GS chassis is old, heavy, and severely out of date - and when matched to the underpowered 4B1 series engines - make for largely uncompetitive offerings in the market. While something like the Outlander Sport is indeed interesting compared to a Honda CR-V, it is by no means the smart choice in the segment. So, going forward, unless Mitsubishi has had a skunkworks of sorts developing their chassis and engine replacements over the past few years, what exactly are they planning to do for their bread-and-butter models? I think the straightforward answer is without a doubt the Nissan North America parts bin. With so many of their models selling well, and for the most part, are reasonably well-reviewed, it would be quite simple to adapt the chassis and powertrain to Mitsubishi's liking to create a high-volume alternative to what is currently available now.

Half of Chinese car buyers won't shop Japanese over hard feelings

The hard feelings between China and Japan is no real secret. Besides modern-day disputes, the two countries have had a long-running enmity that dates back to well before the atrocities of World War II. All things considered, then, it shouldn't be a shock that half of Chinese car buyers wouldn't consider a Japanese car. This survey, conducted by Bernstein Research, found that 51 percent of 40,000 Chinese consumers wouldn't even consider a Japanese car – which, again, isn't really surprising, when you consider stories like this. According to Bernstein, the most troubling thing is the location of these sentiments – smaller, growing cities where the population is going to need sets of wheels. We imagine it wouldn't be as big of an issue in traffic-clogged Shanghai or Beijing, but these small cities are going to become a major focus for automakers. "Nationalistic feelings are an impediment. [Japanese] premium brands will struggle," analyst Max Warburton wrote in a research note, according to The Wall Street Journal. Things will improve for Japanese makes, although China will remain a challenge, with Warburton writing, "the one thing that comes out most clearly is that most Chinese really want a German car. While we expect Japanese brands to continue to recover market share this year, ultimately the market will belong to the Germans." There are a few other insights from the study. According to WSJ, Japanese brands are viewed better than Korean brands, and they're seen as more comfortable than the offerings from Germany or the US, despite the fact that everyone in China apparently wants a German car. This is a tough position for the Japanese makes to be in, as there's really not a lot they can do to win favor with Chinese buyers. It will be interesting to see how this plays out, particularly as the importance of the PRC continues to increase year after year. News Source: The Wall Street Journal - sub. req.Image Credit: Kazuhiro Nogi / AFP / Getty Images Honda Mazda Nissan Toyota Car Buying