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How Renault, Fiat Chrysler, and yes, Nissan, could save through sharing

If French automaker Renault green-lights a proposed merger with Fiat Chrysler Automobiles, the companies almost immediately could begin saving money by consolidating components and basic structures on many of their most popular vehicles, an industry analyst said on Tuesday. The synergies could multiply if they invite Japanese automaker Nissan, currently Renault's alliance partner, to join the merger, according to a former Renault and Nissan executive. Renault and Italian-American rival Fiat Chrysler Automobiles are in talks to tackle the costs of far-reaching technological and regulatory changes by creating the world's third-biggest automaker. A Renault-Fiat Chrysler combination "would mean a greater sharing of parts (which) could really boost the profitability of Fiat Chrysler's smaller vehicles," said Sam Fiorani, vice president, AutoForecast Solutions. Building similar models on a common vehicle architecture, Fiorani said, "would give both companies a lot more freedom in manufacturing. They could mix brands and vehicle sizes on the same assembly line, switch vehicles between plants to balance production, and even shift production from one country to another, depending on changes in demand, tariffs or other considerations." Fiorani said Fiat Chrysler could benefit from sharing the French automaker's expertise in electric vehicles and powertrains, where Renault and Nissan have jointly invested more than $5 billion. These are areas in which Fiat Chrysler has little in the way of components or intellectual property. Another sector that is ripe for consolidation is light commercial vehicles, where Renault and Fiat Chrysler could build a variety of vans in several sizes on common platforms that could be assembled and sold in global markets. Ford Motor Co and Volkswagen AG began their alliance discussions a year ago by focusing on potential collaboration in light commercial vehicles. Getting Nissan's blessing Fiorani said Renault's CMF architecture, which was jointly developed with Nissan and underpins many of Renault's passenger cars and crossovers, could be used by Fiat Chrysler on a wide variety of vehicles. As an example, he said the CMF could provide a new single foundation for at least five Jeep models, including the Renegade, Compass and Cherokee, which now are based on four different platforms.

Workers at Mississippi auto supplier protesting low wages

Workers at an automotive seat factory in Mississippi are protesting what they say are low wages and poor working conditions as they attempt to unionize in what could become a new front for the United Auto Workers in the state. A group of workers and supporters at the Faurecia SA seating plant in Cleveland plans a Tuesday march. "We work an auto job and we're getting paid like Wal-Mart wages," said Jamarqus Reed, a 32-year-old Pace resident who has worked at the plant for almost 10 years. "We're trying to better ourselves." Nationally, the UAW has staked its future on unionizing Southern auto factories, with limited success so far. The union has been trying to organize Nissan Motor Co.'s Canton, MS, plant for years, and lost a 2008 worker vote at a Johnson Controls plant in nearby Madison that French-based Faurecia bought in 2011. The UAW narrowly lost a unionization vote at the Volkswagen AG plant in Chattanooga, TN, last year, but the union has since qualified for a new labor policy at the plant that grants access to meeting space and to regular discussions with management. The policy stops short of collective bargaining rights. The union is also trying to organize Nissan's assembly plant in Smyrna, TN, and Daimler AG's Mercedes-Benz plant in Tuscaloosa, AL. Protesters say Faurecia employees make a top wage of $11.64 per hour, while contract workers make $7.73 an hour. Company spokesman Tony Sapienza said that with overtime, the typical Faurecia employee makes more than the $27,000 a year that is the median wage around Cleveland. Wages are often low in the heavily impoverished Delta. "We are very confident that we are offering a very competitive wage," Sapienza said. Organizers criticize use of lower-paid contract workers Shannon Greenidge, a 44-year-old Cleveland resident, said she worked for a labor agency for more than two years before being hired directly by Faurecia. Greenidge said she makes $9.29 an hour, and can't save for retirement or to send her 11-year-old daughter to college. "That's not going to help me down the line in life," she said. Union supporters say as many as half the workers at the plant work for a contract-labor agency. Sapienza said that while the number varies, the company expects 15 percent of its workforce will be temporary employees this year. The UAW has organized some Southern auto parts plants in recent years, including Faurecia plants in Cottondale, Alabama, in 2012 and Louisville, Kentucky in 2013.

2014 Nissan Leaf named overall cleanest car in US

A research firm has named the zero-emission 2014 Nissan Leaf the cleanest production vehicle in the US, and that's figuring in the full, wheel-to-well lifetime impact of the car on the environment. The Automotive Science Group (ASG) studied more than 1,300 automobiles with at least four seats across nine categories, measuring everything from the amount of fuel needed to run the car during its lifetime to the extraction of natural resources to build the thing in the first place to end-of-life processing. ASG calls the process "wildly complex." The battery-electric Leaf, with its 84-mile single-charge range, took top honors overall, but there were other highly ranked vehicles in different categories. ASG also said that the Mitsubishi Mirage, with its sub-2,000-pound curb weight and 40 miles per gallon fuel economy, was the cleanest among gas-powered vehicles, while the Chevrolet Spark had the lowest cast of ownership over five years. Last month, the American Council for an Energy-Efficient Economy (ACEEE) put together its annual "Greenest" and "Meanest" (notice: we didn't say "Cleanest") lists and put the Leaf at number three. Topping that list was the Smart ForTwo ED battery-electric, but that was followed up by the Toyota Prius C compact hybrid, so fans of those vehicles can now start a healthy debate. The ACEEE uses data from the Environmental Protection Agency and California Air Resources Board to compile its list. We have ASG's press release below. Life-cycle Assessment of 1,300 Models Reveals Best of 2014 FOR IMMEDIATE RELEASE 4 February 2014 [Santa Rosa, CA] – The Automotive Science Group (ASG) conducted a comprehensive life-cycle assessment of over 1,300 automobiles across nine categories to distinguish the BEST model year 2014 vehicles in environmental, economic, social and "all-around" performance. Auto consumers are now equipped with a car buying guide founded on principled facts, a departure from the notoriously subjective test drive "editor reviews" that have long been the industry norm. Using a unique combination of vehicle data inputs that include conventional specifications as well as ground-breaking social, environmental and economic performance indicators, ASG's back-end algorithms are wildly complex, but the front-end results – meaningful vehicle ratings and distinguished awards – are forthright and consumer-friendly. ASG's Automotive Performance Index is for automotive consumers what Google is for web users.