Auto blog

PSA shares rise following FCA's breakup with Renault

Shares in Groupe PSA, parent company of automakers Peugeot, Citroen and the DS brand, rose on Thursday as analysts considered the possibility that Fiat Chrysler could turn back to PSA after withdrawing its $35 billion merger offer for Renault. "Both parties have acknowledged the need for scale or [mergers and acquisitions] and may pursue other opportunities. If Nissan was an obstacle (to an FCA-Renault deal) PSA-FCA discussions could resume," wrote brokerage Jefferies. Back in March at the Geneva Motor Show, rumors started swirling that PSA was interested in a potential merger with FCA. Mike Manley, who took over at the helm of Fiat Chrysler following the death of Sergio Marchionne, had indicated a willingness to look into potential partnership options. Of course, that was all before FCA proposed a merger with Renault — with that deal now off the table, attention naturally turns back to PSA, which is also based in France. "We expect both shares to react negatively but see FCA having wider strategic options and Renault shares more downside risk near-term," said Jefferies. According to Reuters, PSA shares were up 1.5% at the time this was published, making it the top-performing stock on France's benchmark CAC-40 Index. Renault saw its shares slump 7%. Shares for FCA fell 3% in early trading on the Milan Stock Exchange. Considering that FCA said in its statement confirming the withdraw of its merger offer with Renault that "political conditions in France do not currently exist for such a combination to proceed successfully," we have to wonder how keen the company is to begin negotiations with another French automaker like PSA. Those thoughts were similarly voiced by Bernstein Research analyst Max Warburton, who said (via Forbes), "Expect PSA to rise on unrealistic hopes it may be FCA's next date." Earnings/Financials Chrysler Fiat Mitsubishi Nissan Citroen Peugeot Renault FCA renault-nissan

Nissan's NY taxi deal faces court obstacles

Nissan scored a big win for itself when the NV200 was named New York City's Taxi of Tomorrow, but the compact van has been under attack ever since. The latest setback for Nissan comes from the New York Supreme Court, which has reportedly ruled the deal between NYC and Nissan is "null, void and unenforceable" since the NV200 is not a hybrid - one of the key parts of NYC Mayor Michael Bloomberg Taxi of Tomorrow plan.
The NV200 Taxi launches this October. Although Nissan says it is bringing a hybrid version of the van to market in 2015, the New York Supreme Court ruled against Nissan, which opens the door for taxi companies in NYC to drive non-Nissan hybrid vehicles. Despite this setback, it doesn't sound like this ruling will affect the NV200 becoming the official taxi of NYC as a part of the 10-year contract worth an estimated $1 billion.

Infiniti brand will finally make its debut in Japan, but not the name

Nissan left the automotive media scratching its collective head when it announced that its Infiniti luxury brand would be renaming all of its vehicles, with cars wearing the Q designation and CUVs/SUVs wearing the QX badge. So the G Sedan became the Q50, and the G Coupe became the Q60. The QX56, meanwhile, became the QX80, and the FX crossover became the QX70. It is still thoroughly confusing nearly a year later.
Not content to confuse its US customers alone, Nissan will be fiddling with the name of one of its most revered Japanese-market models - the Skyline. Rebadged for the US as the Q50, and before that as the G Sedan/Coupe, the new Skyline will wear an Infiniti badge. What makes this truly confusing, though, is that the car won't be called the Infiniti Skyline, despite its badging. It won't even be called the Nissan Skyline, anymore. It's now just the Skyline. Apparently, Nissan thinks it can capitalize on the Skyline's link to the Japanese royal family (the Skyline was originally a product of Prince Motors, which provided vehicles for the Emperor and his family), by ditching any brand names and referring to it as its own model, according to Automotive News.
Now, confusion aside, there are things about Infiniti badging in Japan that make sense. Badging all the Nissans that eventually become Infinitis as Infinitis in the first place goes a long way to make the brand seem separate and distinct from its parent company. Speaking to AN, Infiniti's executive vice president of global product planning, Andy Palmer, puts it this way, "We have to treat Infiniti, if you will, in the same [way] that Volkswagen treats Audi. It's not a Nissan-plus. Infiniti has to stand head-to-head with any of those German competitors."