#Renault

In order to save Nissan from certain death in 1999, Renault dispatched Carlos Ghosn to Japan to take over as COO. The French-Lebanese Brazilian was promoted President of the Nipponese carmaker, and CEO in June 2001. In Japan, he had shocked the conservatives, later he became a cult figure, a gaijin shogun. He was even immortalised in a manga. In 2005, Ghosn was crowned King of the Realm and became CEO of Renault.

So, you’d think by now that Monsieur Ghosn-sama is sick to death of the Franco-Nipponese alliance? And that the 55 year old will retire to the South of France?

Renault is using their Dacia subsidiary to produce cheap cars for Eastern Europe and other emerging markets (such as Germany, where Dacias had been snapped up during the Abwrackprämien-orgy.) Meanwhile, Renault’s Japanese twin Nissan is starting to feel a little left out. Yes, they have the Nissan Pixo, which is a rebadge of the Suzuki A-Star, which is built in India (and was recalled recently), but Nissan seems to want something of their own and they want the Indian truck manufacturer Ashok Leyland to help. Sounds easy enough …

In these times of bailouts, stimuli and protectionism, it’s probably a good time to remind ourselves of the basic tenets of capitalism. In short, let the free market run free and things will adjust themselves. Or so they say. If factory costs are too high, you either cut costs or move to a place that has lower costs. This is why Eastern Europe is so popular for European manufacturing companies. Cheap labor, low overheads and no tariffs due to EU membership. However, as I said earlier, when a free market is allowed to be free, things will adjust. And adjust, they have.

Charging stations are okay, really. Battery swapping stations are even better, and I honestly have nothing against Lithium-ion batteries. But we love cars, not infrastructure, and that’s what has been missing from our Better Place coverage: real car related stuff. So here I am, in the front seat of Better Place’s actual electric car. Of course, when I say actual, what I mean is that this is actually a Renault Laguna, a rather bland French midsize car, and one car Renault doesn’t intend to electrify in its joint venture with Better Place. So what’s its business being green in the car park with stickers all around it reading ‘EV’ and flowers emitting from its exhaust?

BusinessWeek reports that Nissan could be up a certain creek without a certain instrument. In Europe, Nissan competes in the low cost, city car segment (just below cars like the Toyota Yaris and Honda Jazz) by selling a rebadged Suzuki Alto which they call the “Nissan Pixo”. This car competes with the Toyota Aygo/Peugeot 107/Citroen C1, Fiat Panda and the Volkswagen Fox (which is curious, because the BW article says “Volkswagen Lupo” which hasn’t been sold in Europe since 2005). But since Suzuki got a German partner (insert your own Bertel Schmitt reference here), the Pixo is looking a bit left out in the cold. The burning question: would Suzuki carry on supplying Nissan with cars or would the Wolfsburg Warriors put pressure on Suzuki to say “Nein”?

Denmark is keen to show the world, especially after the Copenhagen Conference, that they mean “green.” Denmark is setting up an infrastructure to support electric car recharging, however the other side to this grand scheme are throwing their toys out of the electric car. The Copenhagen Post reports that Renault are threatening to withdraw the electric cars which they were supposed to supply to “Better Place”, the company monitoring the installation of the electric car infrastructure. The reason behind this shocking behaviour (see what I did there?) is that Renault believe that the Danish government are not giving enough favourable car tax breaks to electric cars. The government’s policy is to give electric cars exemption from normal vehicle registration tax of 180%* until 2012.

A lot of what we have written in the last few days, even what we have not yet written, is utterly wrong, say the objects of our writings. Here are the denials of the day.

Money Control reports that the French government threatened to increase its stake in Renault from 15.01% to 20%. Not because it believes in the company and its products (would you trust a Renault Megane over a Honda Civic or Toyota Auris?), but to further exert control over Renault. Why would it want to do that? Well, that could probably have something to do with the French government’s invite to Carlos Ghosn for a little “sitdown” over the rumours that Renault may produce its new generation of Clio in Turkey, rather than its plant in Flins, France, where the current generation is built.

A few months back I noted that the French government was interfering in the car industry by demanding French plants stay open as a condition of their bailout of Renault. Well, things are getting even more….well….French. New York times (via Reuters) reports that French President Nicolas Sarkozy has summoned Renault and Nissan CEO, Carlos Ghosn for a cosy chat. Actually, “grilling” might be better way of putting it. The invitation has come about after reports surfaced that Renault might be producing its new Clio in Turkey, rather than France. This could be considered state bullying, but the French State is a 15% shareholder in Renault. French Industry minister, Christian Estrosi made absolutely no effort to cover this coercion.

Remember when Japan’s Nikkei said: “The latest round of partnerships is widely seen as just the beginning of a major shakeup of the auto making industry?” A kind of Japanese company, Renault (partner of Nissan) is engaged in heavy petting with yet another partner.

Reuters says French carmaker Renault is in talks with Daimler and others about partnerships. Areas covered include engines, transmission platforms, and access to new technologies, Renault COO Patrick Pelata confirmed today. He added: “We are discussing serious matters with Daimler.”

Thought, you’d seen the last of Renault in North America? Well, think again and this time, they’re bringing their big guns! The Wall Street Journal [sub] reports that Gerard Detourbet, head of Renault’s entry level division is contemplating selling their low cost cars in South East Asia and North America. “We’re looking at Southeast Asia closely,” he said “We ended up not going there for a variety of reasons. But the idea is that we won’t remain absent from that territory.”