Business

The Fiat Chrysler-Renault merger looks like it's going to happen




The Morning Shift All your daily car news in one place. Isn't your time more important?

When we first heard of The Who's Left Merger, it was that Fiat Chrysler pressed it and liked every thing FCA, we looked at it with as much skepticism as we would say, our friend tells us They got a lot on a Dodge Journey. But as the days roll, it seems to be increasingly serious. All that and more in the morning shift May 29, 201[ads1]9.

1. Gear: Renault: You love it, not you? Nissan: We are not Not Love it.

Here are three pieces of news rolled into one. The first is that Renault has gone into trouble flying to Japan to chat with the longtime alliance partner Nissan about the latter possible merger with Fiat Chrysler. This can only mean one thing that Bloomberg reports: Renault is down to clown.

  Preview thumbnail
Fiat Chrysler formally proposes merger agreement with Renault

A few years ago, Fiat Chrysler boss Sergio Marchionne seemed desperate to merge or collaborate with his …

Read more Read [19659011] B & B's story today ran under the heading "Renault's message to Nissan: The Fiat deal is good for all of us" and here is a little:

Renault SA, chairman of the board Jean-Dominique Senard, came to Tokyo with an important assignment: to sell the proposed merger between Fiat Chrysler Automobiles NV and Renault SA to longtime partner Nissan Motor Co.

[…]

While neither party has revealed what is to be discussed, there will be a lot to talk about. According to the Fiat proposal, Nissan will be entitled to 7.5% voting rights in the new entity, compared to no voting rights attached to its Renault shares. A merger will also dilute the French state's control over Renault, and indirectly over Nissan, and ease a concern the Japanese company has had for years.

Senard's goal is to ensure that they all work well together. Although Nissan and Renault have been partners for two decades, the Japanese machine is unable to block the deal. Nissan does not own a controlling stake in the French company, and a merger would not violate its operating agreement.

Bloomberg could not get comments from Nissan for the story, but Nikkei got some goss, as reported by Reuters today:

"We are not against," said Nikkei a named Nissan source who had attended the meeting as said. The person also said that "many details need to be prepared" before the Japanese automaker strengthens its position in the question, Nikkei reported.

In a statement, alliance members confirmed that they had "an open and transparent discussion" on the proposal. The deal appears to be tackling the cost of far-reaching technological and regulatory changes, including driving against electric vehicles.

In any case, the two sides meet Monday, as the Financial Times reports. I wish them all well in this definitely thought merger that makes sense to everyone and does not seem like a desperation.

2. Gear: Of course Wall Street loves an FCA-Renault Nissan merger for any wrong reason [19659007] Wall Street has never met a budget that it couldn't slash, and surprisingly love looking at trimming the fat of five car manufacturers at the same time, like The Detroit News reports today:

A potential merger between Fiat Chrysler Automobiles NV and Renault SA would create a massive global company, but the cost reductions proposed by the FCA have investment analysts optimistic about the deal.

The proposed 50-50 merger between Italian-American Fiat Chrysler and France's Renault would create the third-largest automaker in terms of sales, behind Volkswagen AG and Toyota Motor Corp. It is a move that will also save $ 5.6 billion ($ 5 billion) annually for companies as they find ways to reduce manufacturing, purchasing and R&D costs.

Continue, wait, there's a better deal here , from Moody's, who just upgraded FCA to its highest level of spam, as Detroit News notes. Take in this amazing line, which says in as many words as possible that this is going to be a huge bug, but they will slash costs and we'll look like bandits:

"Combining Fiat Chrysler and Renault would be credit – positive in general as it provides strategic sense and can create a significant amount of synergies, says Falk Frey, senior vice president and auto analyst at Moody's, on a Tuesday note. "However, we will also consider significant execution risk for such a large scale transaction given the complexity of the two group's businesses, especially considering Renault's existing alliance with Nissan Motor Co. Ltd and Mitsubishi Motors Corporation. "[19659015] Now there was a fine analysis from the journalist and friend of Jalopnik John Voelker, who noted that yes, it sounds bad to salivate about" a significant amount of synergies ", but there is still a lot of pointless fat in the automotive industry today:

Personally, I would like to see the automotive industry as it stands today, change completely, move from these giant silos & # 39; d giants into Tons of small manufacturers, all combining different combinations of licensed engines or electrical modules on publicly available skateboard chassis, which we had over a hundred years ago.

3. Gear: Infiniti Return To Japan After Ghosn moved it to Hong Kong

I'm going to be quite honest, I forgot all this happened.

For some reason Carlos Ghosn Infiniti moved his headquarters to Hong Kong back in 2012 in an attempt to get re more in his image, I believe, more international. Anyway, with Ghosn gone, Infinti packs his pencils again, as Bloomberg elaborates in a wire report:

Ghosn in 2012 planned to more than triple Infiniti's annual sales to 500,000 units within five years to increase its share of the global luxury car market to 10%. The brand sold less than half of the target last year.

Nissan reported its lowest annual profit in a decade for the fiscal year to March during March this year by randomly selling US sales, aging vehicle models and an unknown product cycle. CEO Hiroto Saikawa is working to revive profits and promises to lift Nissan out of a "bottom" of two years. Infiniti currently has 180 employees in Hong Kong, mainly in management, sales and marketing positions.

The report further showed that Infinti is planning to dump diesels and focus on electrical and electronic components and China, which you can also call "Tesla has tried to do for years now" action plan.

4. Gear: China Considering Subsidizing EV Charging

China has been a little vocal in saying it rolls back on subsidizing its burgeoning electric car hegemony, but apparently some have not received the message, as mentioned in a Bloomberg thread report today:

China scales back subsidies on EV purchases and plans to phase them out completely by 2020 among concerns that car manufacturers have become too proud of them at the expense of new technology development. The financing offered on purchases will be redirected to develop charging infrastructure, says March Migration Minister Miao Wei.

China, which has about 960,000 charging stations for its 2.31 million electric vehicles, is working to upgrade the network. The new standards will increase the capacity of the plants six times to more than 350 kilowatts, making recharging as efficient as filling a regular fuel tank, said Liu [Kai, a director with the Information and Certification Department of the China Electric Vehicle Charging Infrastructure Promotion Alliance].

It is part of me that cares about this. I don't love the idea that EV fate can hang on a government program, one that can change at any time, but a little help, and it's not like consumers are less bad, buying gas jugglers the moment fuel prices fall

5. Gear: In New Era Of Auto Layoffs, It's Hard to Tell Who Looks Worse: Detroit or Washington

I love everything about this incredibly obvious analysis from The Washington Post, which apparently just woke up to realize that Detroit has slashing jobs while budgets have been fat, and Trump hasn't helped anything:

  Preview Thumbnail
In fact, Ford needs more layouts despite rising truck gain, Wall Street Analyst

A Wall Street analyst says Ford needs more cuts despite making billions of F Series truck sales, …

Read more Read

[T] here's another pillar of Trump's base – the automotive industry, which he promised to turn into a manufa when It's about revival – it's in an infinite moment for the president.

Expenses in the industry this year are at their highest since the economic crisis a decade ago [.]

The chip focuses on Trump who does not meet his promises to help the automotive industry, which have but I Think you can't look at this without putting much blame on companies like GM to shut down the entire factories when we're not even in a recession.

Conversely: This was newer than you & # 39; wish

Danica Patrick becomes the first woman to lead Indy 500

On this day in 2005, the 23-year-old Danica Patrick becomes the first female driver to take the management of …

Read more Read

Neutral: What do you call the potential Fiat-Chrysler-Renault-Nissan-Mitsubishi conglomerate?

Is it who's left merger? Is it the merger to restore balance, as with a new car business that enters the phrase (Tesla), another must be assumed to be absorbed? Is it the merger of corpses, but for real this time? Your thoughts are welcome.



Source link

Back to top button