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France tries to dodge blame for blowing up FCA-Renault merger deal

PARIS — France sought to fend off a hail of criticism on Thursday after it was blamed for scuppering a $35 billion-plus merger between carmakers Fiat-Chrysler and Renault only 10 days after it was officially announced. Shares in Italian-American FCA and France's Renault fell sharply in early trading after FCA pulled out of talks, saying "the political conditions in France do not currently exist for such a combination to proceed successfully." French finance minister Bruno Le Maire said the government, which has a 15% stake in Renault, had engaged constructively, but had not been prepared to back a deal without the endorsement of Renault's current alliance partner Nissan. Nissan had said it would abstain at a Renault board meeting to vote on the merger proposal. However, a source close to FCA played down the significance of Nissan's stance in the discussions, believing French President Emmanuel Macron was looking for a way out of the deal after coming under pressure at home. Context The FCA-Renault talks were conducted against the backdrop of a French public outcry over 1,044 layoffs at a General Electric factory. The U.S. company had promised to safeguard jobs there when it acquired France's Alstom in 2015. The collapse of the deal, which would have created the world's third-biggest carmaker behind Japan's Toyota and Germany's Volkswagen, revives questions about how both FCA and Renault will meet the challenges of costly investments in electric and self-driving cars on their own. The merger had aimed to achieve 5 billion euros ($5.6 billion) in annual synergies, with FCA gaining access to Renault's and Nissan's superior electric drive technology and the French firm getting a share of FCA's lucrative Jeep and Ram brands. FCA has long been looking for a merger partner, and some analysts say its search for a deal is becoming more urgent as it is ill-prepared for tougher new regulations on emissions. It previously held unsuccessful talks with Peugeot maker PSA Group, in which the French state also owns a stake. French budget minister Gerald Darmanin said the door should not be closed on the possibility of a deal with Renault, adding Paris would be happy to re-examine any new proposal from FCA. "Talks could resume at some time in the future," he told FranceInfo radio.

Nissan IDX production model to get sharper, less retro styling

The Nissan IDx seems like the type of concept that auto enthusiasts wish they could be driving. With a compact size, style inspired by the classic Datsun 510 and a rear-wheel-drive powertrain, it certainly ticks many of the boxes that people want. Unfortunately, the car seems to be miles away from actually getting a green light for production, but rumors about the retro coupe's future keep cropping up.
The last we heard about the IDx, the biggest complication with the coupe was that it was a tough project to make profitable. Nissan didn't have a cheap enough rear-wheel drive platform to make the affordable coupe work. The latest rumors point to a potential solution to this problem. According to Motoring from Australia speaking to an insider close to Nissan, the new plan is to tweak the styling to be less retro and adapt the car to work on the platform for the forthcoming, next-generation Z car.
The new look reportedly cribs from the Nissan Sport Sedan Concept from the 2014 Detroit Motor Show, including its floating roof design and sharper edges around the fenders. In terms of power, the source tells Motoring, the IDx could use a naturally aspirated 2.0-liter four-cylinder engine with around 180 horsepower on tap. That might not sound like too much, but remember the Z car itself is rumored to get smaller and lighter when it's new generation hits the stage. If the weight is low enough, potentially using it for the IDx might just work.

Watch Nissan's autonomous Leaf in action

Getting its semi-autonomous Leaf legalized in Japan was just the first step. Now, Nissan is giving demonstrations of what its fully autonomous car is capable of at this year's Combined Exhibition of Advanced Technologies (CEATEC) show - Japan's equivalent to America's Consumer Electronics Show. To show off the possibilities of its technologies, Nissan had an oval track set up at the show giving rides in an autonomous Leaf to the media. Even Nissan CEO Carlos Ghosn and Toyota CEO Akio Toyodo caught a ride.
Nissan has since released a couple videos of its CEATEC demos, with one designed to look like a news report. In this video, you can watch the car go around the track and navigate intersections and road hazards. The second video shows Ghosn riding in the car, and he hints that Nissan's goal of having an autonomous vehicle in production by 2020 might be more of a worst-case scenario. Watch both videos and read through Nissan's official press release below.