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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.

2016 Nissan Titan coming to 2015 Detroit Auto Show

The Titan has continued to sit in a corner of Nissan's front yard, taken out on occasion but largely unloved, the same way you see a project truck in a neighbor's driveway that makes you wonder, "Are they ever going to do anything with that?" The fullsize pickup made the news about six months ago when reports surfaced that the next generation would offer a Cummins diesel engine that had originally been meant for Ram, then it returned to the shadows.
According to a report from Edmunds, the Titan will return to the spotlight in about a year, with the unveil of the 2016 model planned for next year's Detroit Auto Show. Along with that oil-burner, it will bring a gasoline V6 engine, a complete redesign and a regular cab configuration to finally give it a fighting chance against the thick end of the light-duty truck market. Toyota gets pressed for the molasses-like sales of the Tundra, but that fullsize entrant sold 7,890 units in January and 10,988 in December 2013. Nissan sold 887 Titans in January, 1,284 in December 2013 and broke 2,400 US sales in a single month just once in four years. (The segment-leading Ford F-150, for reference, sold 46,536 units in January.)
An entry-level model and a regular cab option should give the Titan a welcome and overdue sales boost. Better power numbers and fuel economy for the V8 would probably go a long way, too. We expect to start getting glimpses of its future later this year.

Nissan Juke to get higher-performance Nismo RC model

It's hard to find more giggles for your crossover dollar than the Juke - regardless of how you feel about the way it looks, the singularly styled nichemobile from Nissan is very entertaining to drive. Yet we've always felt that the platform had more in it, and evidently its Japanese parent agrees, having recently bracketed the googly-eyed turbocharged CUV with a new Nismo model and the barking mad built-to-order Juke R. At present, neither the Juke Nismo or the GT-R-powered Juke R are sold in North America, but the former has already been confirmed for sale here.
Even when it does reach our shores, there will still be a heck of a lot of whitespace between the mild performance upgrades of the standard Nismo and the half-mill R model, and to hear the UK's Car tell it, Nissan has plans to plug that gap, too. According to its report, the automaker will shortly offer a Juke Nismo RC that will have roughly 20 horsepower more than the basic Nismo (which itself has 197 hp, nine more than the base Juke). The RC will apparently feature a lower, stiffer suspension, upgraded brakes and a unique exhaust and intake for a snarlier soundtrack. Both front-and all-wheel drive models are planned, as are manual and CVT transmission choices.
No word yet on the RC's pricing or even North American availability, but the regular-strength Juke Nismo is expected to arrive shortly, and Nissan is also said to have big plans for its performance nameplate, so we wouldn't rule it out.