• Nissan threatens future of partnership with Renault

    December 7, 2015

    The future of the Renault-Nissan alliance is under threat thanks to moves by the French government and Yokohama’s increasing dissatisfaction with its lack of control.

    In April, France’s economy minister Emmanuel Macron invoked a new law that allows it to take a 28 percent stake in Renault. Though at the moment it has only upped its ownership to just 19.7 percent, the intricacies of the rules effectively give Paris 30 percent voting rights and control in the boardroom, says Reuters.

    Renault owns 43.3 percent of Nissan, giving it a controlling stake of the Japanese automaker, while CEO Carlos Ghosn oversees the operations of both companies. As a result, the new developments could see the French government determining Nissan’s overall business strategies, which the latter is not happy with.

    Nissan currently owns just 15 percent of Renault, a lopsided partnership that formed when Nissan was on the verge of bankruptcy in 1999. The French cash infusion brought the company back from the brink but made Nissan subservient to the French automaker. The resulting Renault-Nissan alliance now sells one in ten cars around the world.

    Today, with sales and engineering surpassing that of its French overseers, Nissan does not need its partner quite as much as it did in 1999. The company has two options, according to Nikkei Asian Review. It may execute an option in the Alliance’s contract to increase its share in Renault to 25 percent, which would cause Renault to lose its controlling voting rights in Nissan according to Japanese corporate law. Or, Nissan could issue new shares to dilute Renault’s stake to 40 percent, which under French law would give Nissan voting rights on its existing 15 percent in Renault.

    Meanwhile, Macron’s move is believed to be spurred by pressures to create jobs in France. Negotiations on all three sides have been ongoing for six months. Renault’s board will decide how to react to the French government’s encroachment in a vote on December 11. The result could determine the future of one of the world’s largest automaking partnerships.

  • Toyota exec predicts end of sedan dominance, displaced by compact SUVs

    December 7, 2015

    Despite creating one of the best-selling automobiles in history in the Camry, Toyota believes the archetypal sedan — nearly synonymous with the word “car” itself — may not be the prevailing mode of transportation for much longer. Its replacement? The compact SUV.

    According to Bloomberg, top Toyota USA executive Bob Carter, speaking at a Toyota-sponsored holiday party in Detroit, foretold of a future in which the RAV4, the company’s compact crossover, outsells the Camry. Carter even put his money where his mouth was: “I’ll bet you lunch that will happen.” Moreover, he thinks this will happen within the next five years.

    The Camry has been America’s best-selling passenger car for 13 years, and is estimated to reach 425,000 in sales by 2015′s end. Comparatively, Toyota predicts it will sell 300,000 RAV4s, up 16 percent from last year. However, together, compact SUVs — including the Honda CRV, Nissan Rogue, and Ford Escape — are already outselling mid-sized sedans.

    What’s driving this shift in buying patterns? SUVs — or more precisely, car-based crossovers — are getting better mileage than when truck-based sport utilities first came into fashion in the 1990s. There’s no longer an economic penalty to be paid. Furthermore, after two decades of SUVs, millennial car buyers have grown up with those as the default vehicle of choice. As more of them make new car purchases, that notion seems deeply ingrained.

    This comes as a surprise even for Carter. “Five years ago, if somebody would have said compact SUVs would be outselling mid-size sedans, I probably would have disputed that.” Toyota is ready for the change. Though most RAV4s sold in the US are build here, the automaker is already importing Japan-built RAV4s to meet demand. A new plant being constructed in Canada will be able to boost North American capacity to 400,000.

    Images by Byron Hurd.

  • McLaren could build one-off SUV if buyers demand it

    December 7, 2015
    McLaren has previously made it clear that it’s not planning on branching out into the world of crossovers and SUVs. However, the company’s Special Operations division is open to the idea of building a one-off off-roader if a buyer with deep enough pockets demands it.

    “With MSO, we did a car a few years ago that was harking back to coachbuilding. If you come to MSO, we could design you an all-new body, a power increase or decrease. We can design you whatever you want, if you have the money for it,” explained Robert Melville, McLaren’s chief designer, in an interview with British magazine Autocar.

    While McLaren’s MSO division has what it takes to develop a four-seater SUV, Melville explained the process would cost “millions and millions of pounds” because the model would have to ride on a brand new carbon fiber tub designed from scratch. Of course, the specifications sheet is purely theoretical because a McLaren SUV hasn’t been commissioned yet.

    MSO aside, McLaren is focusing on the models that make up its Sports, Super and Ultimate Series. In other words, enthusiasts shouldn’t their breath waiting for a regular-production Porsche Cayenne fighter with a McLaren emblem on the hood or, for that matter, a full-size sport sedan designed to take on the Aston Martin Rapide.

    Note: McLaren 675LT Spider pictured.

  • Nissan preparing EV with range extender

    December 7, 2015
    Nissan has confirmed plans to introduce an electric model equipped with a gasoline-burning range extender in a bid to quell range anxiety.

    On paper, the drivetrain will be similar to the one that powers the Chevrolet Volt and to the unit that’s offered as an option on the BMW i3. In short, it will consist of an electric motor, a battery pack, and a small-displacement gasoline-powered engine. In normal driving conditions, the electric motor will use energy stored in the battery pack to spin the front wheels. When the pack gets low, the range extender will automatically turn on and generate electricity, giving the car’s driving range a considerable boost.

    There will be no connection between the engine and the drive wheels, it will act purely as a generator. In contrast, the engine and the electric motor are both capable of spinning the drive wheels (either separately or together) in a plug-in hybrid drivetrain.

    Surprisingly, the yet-unnamed model will not be based on the Leaf, and Nissan openly admits it’s not planning on retrofitting the technology to the hatchback — at least not to the current-generation model. That means the range extender could be installed in a more eco-friendly version of an existing Nissan, or it could make its debut under the skin of a brand new model.

    We won’t have to wait too long to find out which option Nissan has chosen because Yoshi Shimoida, the deputy manager of the company’s EV and HEV engineering division, told Australian website Motoring that the technology will be introduced next year.

    Note: Nissan IDS concept pictured.