#AutomotiveIndustry

Nissan’s new chief executive, Makoto Uchida, believes now is the time to reassess its corporate partnership with Renault. In case this is the first automotive-related article you’ve read this year, the Renault-Nissan-Mitsubishi Alliance is sickly. Bizarre financial scandals involving the group’s former chairman Carlos Ghosn ( and others), internal power struggles, serious money troubles — the situation is rife with headaches. But Uchida says the only way to cope is to publicly recognize the elephant in the room and see what can be done.

“The alliance is critical to reach our goals,” Uchida said at Nissan’s headquarters in Yokohama on Monday. “We need to look at what worked within the alliance, and what didn’t, and decide how to go forward.”

While the automotive industry continues cleaning itself up via electrification and moral corporate messaging, most aspects of doing business have remained decently dirty. For all this striving for a utopian society, businesses still don’t like losing money and will go to great lengths to screw over the competition.

South Korean battery suppliers SK Innovation and LG Chem are currently clawing at each other like a couple of mad tigers. SK managed to secure a contract to supply Volkswagen Group with EV batteries, leading to the construction of a $1.7 billion factory in Georgia. LG did not, leading to a lawsuit. Both automakers and analysts are worried the litigation is spinning out of control, and could effectively obliterate their ability to do business in the United States.

A new report indicates that BAIC Motor Corp, Daimler’s primary Chinese joint-venture partner, wants to increase its stake in the company. Currently, BAIC owns 5 percent of the German automaker ( purchased in July) with rumors swirling in October that the firm wanted to increase its investment. There were also claims that Geely was attempting to stand in the way of the prospective deal.

While not Daimler’s main squeeze in Asia from a production perspective, Geely actually owns 9.7 percent of the company — giving it quite a bit of leverage. As such, there were murmurings that Geely put the kibosh on any ideas BAIC had on investing further. Geely has rebuffed the accusation. “We are a long-term investor in Daimler. We do not react spontaneously to any volatility and we support Daimler’s management and their strategy,” the firm explained.

Be that as it may, there appears to be a minor power struggle between the two Chinese companies. Both seem interested in strengthening their influence and happen to find themselves in each other’s way.

While the Insurance Institute for Highway Safety (IIHS) has gradually evolved its testing procedures since its inception, it has hit the accelerator over the past few years, eager to crash into a new era of knowledge… Alright, so it actually just wanted to assess problematic crash trajectories and headlight safety for insurance companies. Still, they’ve been making meaningful changes in a bid to boost overall safety.

On Thursday, the institute said it plans to continue evolving its crash-test procedures. It claims it’s gotten so good at developing side-impact assessments, “the current side ratings no longer help consumers distinguish among vehicles or point the way toward further improvements.”

The solution? Slam bigger, heavier items into a vehicle’s profile and see what happens.

If you hop around this country on a semi-regular basis, you’ve likely noticed that California seems better equipped to endure the onslaught of electric vehicles poised to reshape our society. For all the complaints about the state’s managerial issues and a homelessness situation that’s spinning wildly out of control, it’s one of the few places you can regularly encounter EV charging stations without actively looking.

It’s also an area you see them frequently in use. Many states still harbor large distances between charge points that don’t see a lot of use in the first place. But things are different in California. There are dedicated EV stations along most major highways, increasing in frequency the closer to you get to metropolitan hubs. Once inside the city limits, there are are countless office parks, service stations, and parking structures offering ground-floor charging — many of which will actually have cars plugged into them.

You’ll also notice many are broken and some don’t let you pay via a single swipe of your credit card. Instead, the machine will ask you to make an account with whatever company is offering the service, often trying to push you into using a proprietary app. It’s unfortunate and probably the last thing you want to do after scouting out a particularly well-hidden station because the first three you came across were occupied or out of order.

A new report from Edmunds tries to make a case against Ford and General Motors placing their small- and medium-sized cars on an iceberg and setting it adrift. We don’t even need to see the metrics to agree. Ditching cars for higher-margin crossovers and SUVs always seemed a little short-sighted. Without entry-level models, you’re likely to get fewer entry-level (i.e. new) customers, and several of the models axed from North American lineups happened to be the most enjoyable to drive.

Selfishly, we like to see plenty of variety among mainstream brands.

Edmunds’ concern isn’t so much about Ford and GM losing money; rather, it’s more about the automakers setting themselves up for failure further down the line. The analysis revealed that 42 percent of Cruze and Focus owners are choosing to stay in the passenger car segment, rather than spending a little (or lot) more to purchase crossovers and SUVs. Meanwhile, 23 percent of Cruze owners and 31 percent of Focus owners who traded in their car in 2019 ended up buying something similar from a competing automaker.

On Thursday, Daimler made an announcement confirming earlier reports that it plans to cut roughly ten percent of its management staff as part of a broader restructuring plan. Financial hardship has become a sign of the times for the auto industry. Most sizable manufacturers are coming off an investment spree aimed at developing new-energy vehicles, autonomous driving systems, and connected services. Unfortunately, those commitments came at roughly the same time the world’s largest auto markets started to collectively plateau.

A broad approach no longer seems feasible for all but the absolute largest automakers on the planet. We’ve seen many attempt to downsize through restructuring or by entering inte partnerships with other firms to share costs — sometimes both. Knowing this as well as anyone, Daimler issued two profit warnings this year as Mercedes-Benz was fined $960 million in an emissions-cheating settlement while hemorrhaging cash through EV investments.

Reports have come in from Germany that Mercedes-Benz has decided to reduce its management staff by around 10 percent globally. On Friday, German newspaper Suddeutsche Zeitung wrote that Daimler CEO Ola Källenius wishes to delete around 1,100 management posts while freezing wages for all 300,000 German employees — citing internal documents from the automaker’s works council.

Handelsblatt also said it intercepted a copy of the letter, with both outlets claiming Daimler would elaborate further on the plan this Thursday. While Mercedes said it couldn’t comment on the matter, its restructuring push was no secret, even before Källenius took over as chairman in May.

In reading this website, you’ve no doubt come across paranoid rants about automotive companies vacuuming up your personal data as connected cars become the norm — often written by yours truly. Frequently bleak, they address a multitude of concerns we believe will only get worse before they can get better.

A large part of that has to do with automakers seeing the potential of leveraging customer data, like so many tech companies have before them. But elected (and unelected) officials also seem to have a loose grasp of the technology and its potential ramifications. When the Department of Transportation initially approved self-driving vehicles for public testing, the guidelines were loose and largely dependent upon self-reporting — few wanted to stand in the way of developing systems that might someday save lives.

However, manufacturers are now beginning to issue over-the-air updates, perpetual internet connectivity, gamification, and in-car marketplaces (complete with advertisements). While the new technology has opened up new doors for customer experiences and corporate revenue, it’s accelerating at a pace that’s difficult to track. As a result, lawmakers in Massachusetts and California are starting to get antsy. The former hopes to address how data will be handled in accordance with the state’s right-to-repair laws. The latter is more directly concerned with privacy.

Fiat Chrysler Automobiles and Groupe PSA both confirmed their intention to merge on Thursday, verifying reports that the pair were in the final stages of approving the deal. The arrangement will be a 50-50 share swap, with the new company’s shares listed on the New York, Paris and Milan stock exchanges.

The duo hope to finalize a deal in the coming weeks to create a group with 8.7 million in annual vehicle sales. That would make it the fourth-largest automaker in the world — behind Volkswagen, Toyota and the Renault-Nissan-Mitsubishi alliance.

“There is still plenty of work to do before we reach a formal agreement, but what’s clear is that the opportunity that represents for both companies is very compelling,” FCA head Mike Manley told Reuters. It would appear the arrangement is getting plenty of support. French and Italian leadership have both endorsed the move, provided there are no significant job losses in either country.

On Tuesday, we published a piece examining the possibility of Fiat Chrysler Automobiles merging with France’s Groupe PSA. Considering the how often FCA is in merger discussions, we treated it as little more than a well-founded rumor worth monitoring. But additional reports have come through suggesting that the deal has already been approved.

According to The Wall Street Journal, sources with first-hand knowledge have confirmed the companies are already moving forward on the union — effectively creating the world’s fourth largest automaker by volume.

The Trump administration has reportedly expressed an interest in deciding where and how automotive manufacturers do their business if they want to secure duty-free deals under the United States–Mexico–Canada Agreement (USMCA) that’s positioned to replace NAFTA. According to Bloomberg, there’s currently a discussion taking place between administration officials, congressional staff, and domestic and foreign automakers regarding the context of the legislation that lawmakers will ultimately have to vote on. The White House is said to want highly specific language that would allow it to select production rules unilaterally.

Considering how messy things have gotten with China, it could be useful to have extremely clear trade language and some direct oversight of businesses with global interests. But critics are worried the strategy could bring U.S. trade policy closer to the rigid policies already in place in the People’s Republic — a country America has attempted to distance itself from due to its ludicrous levels of government intervention.

The real fear is that the government could use this to give one manufacturer better treatment than another — cutting it a sweet deal for building in a politically advantageous area, for example. While plausible, we can’t confirm something that’s largely speculative.

Apple co-founder Steve Wozniak has officially given up on autonomous vehicles, despite previously being a major proponent of their advancement. “I stepped way back [on] this idea of Level 5. I’ve really given up,” Wozniak at last week’s J.D. Power Auto Revolution conference in Las Vegas. “I don’t even know if that will happen in my lifetime.”

Automotive News reported the quote on Monday, noting that Steve’s tune has changed dramatically from the days where he optimistically saw Apple blazing the trail for advanced driving technologies — something that requires one to venture several years into the past. He’s been harder on the systems more recently, openly expressing his growing doubts since 2017.

“What we’ve done is we’ve misled the public into thinking this car is going to be like a human brain to be able to really figure out new things and say, ‘Here’s something I hadn’t seen before, but I know what’s going on here, and here’s how I should handle it,'” Wozniak explained. “A human can do that.”

Eager to minimize import costs, Tesla has made impressive progress laying down roots in China. The company secured a long-term lease on a 210-acre site near Shanghai in October of 2018. Ground was broken at the start of January, with the $5 billion facility estimated to begin producing cars as early as this November. While all of this effort was aimed at expanding the brand in Asia while minimizing costs, it’s not translating into a cheaper Model 3 for the Asian market.

Tesla, being Tesla, has decided to launch the Model 3 with a starting MSRP of $50,000. According to Bloomberg, that’s only 3 percent less expensive than the versions it had to ship across the ocean. Rather than attempting to build more budget-conscious variants, the automaker decided to offer all vehicles sold in China with Autopilot and additional standard content.

Legal representatives for former Nissan chairman Carlos Ghosn are requesting Japanese courts dismiss all charges against him on the grounds that prosecutors violated his rights. The filings were submitted ahead of Thursday’s pre-trial hearing before the Tokyo District Court and represent the first real look we’ve had at Ghosn’s defense — which, until now, has just involved him repeatedly professing his innocence.

The core issues focus on accusations of illegal evidence collection and a Nissan-led conspiracy to place him behind bars. But Ghosn’s legal team has also established rebuttals to the charges leveled against him. While those will only come into play if the trial moves forward, we’re skeptical that the case will be dissolved. But let’s begin a little closer to the beginning.