#france

It seems that my recent article on Citroën’s anti-retro retro-inspired car, the DS3, provoked two kinds of reactions: admiration and understanding, but also rejection and some even thought Citroën was simply being cynical in its use of the much storied DS moniker. What was hinted at with the DS3 becomes much more evident in the DS4’s case. With it Citroën may well have stumbled on a modern classic, not to mention a way forward for retro-inspired cars.

Au contraire to VW’s New Beetle, BMW’s Mini, Chrysler’s Pt Cruiser and Fiat’s Cincuecento, Citroën is reviving the fabled DS name as a marque, one that intends to impress on consumers a very Gallic flair for sophistication and elegance. With the launch of the DS3, Citroën is showing a new direction for retro-inspired cars. One that points to the future, while keeping a link to the past of luxury of one of the most intriguing and desirable models in the history of all cars, the DS. Produced in the 60s and 70s, the DS impressed everyone with its different kind of beauty and many a mechanical innovation. Now, it can impress again.

Nobody who knows the business a little thinks the consequences the March 11 earthquake and tsunami will be isolated to Toyota and a little Honda. Renault is joined both at the top and at the hip with Nissan. Renault warned today that its French operation could be affected – albeit in a roundabout way.

The extraordinary board meeting at Renault has ended. The spy scandal most likely has also ended. CEO Carlos Ghosn remains firmly in charge. Below him, one of the largest revirements in the peacetime of a car company. This is what TTAC has developed from sources in Paris:

Renault has scheduled an extraordinary board meeting for today, Monday, French media reports. The meeting will deal with the spy scandal that turned out to be a fraud. On Sunday, France’s Journal Du Dimanche speculated that the heads of COO Patrick Pelata, legal affairs chief Christian Husson, HR chief Jean-Yves Coudriou and security chief Remi Pagnie could be on the block after they were implicated in a letter from jail, written by Dominique Gevrey. The investigator had been hired by Renault, and was subsequently arrested on suspicions of fraud.

The Nikkei must have had too much sake at Yokohama’s famous seaside watering holes after they finished an interview with Nissan and Renault CEO Carlos Ghosn yesterday evening. Their reports of an imminent merger of the two (and sundry others) under a joint holding company turn out to be utter nonsense, or rather “a misinterpretation of a wide-ranging interview,“ as Rachel Konrad, Director of Communications of the Renault Nissan Alliance, tells us in more elegant words.

Caution: This Nikkei story has been debunked by Nissan.

Often considered, more than often denied, now it’s on the table again: Nissan and Renault, having lived in an open relationship with a joint CEO since 1999, could move under the umbrella of a common holding company. Joint CEO Carlos Ghosn told that to The Nikkei [sub] late Wednesday night in Yokohama. The managements of Nissan and Renault seem convinced that this is the way to go. However, there is a lot of work to be done before the wedding will become official.

Renault has had quite a bit of success in recent years with its budget-brand Dacia, prompting Peugeot-Citroen to reach back into its bag of abandoned brands for a name to put behind its own low-cost car offerings. Having briefly considered the Talbot name, it seems that PSA has settled on something a little more modern and relevant to low-cost offerings: Simca. Which makes quite a bit of sense, if you think about it. Rather than naming a budget brand after the makers of hugely expensive pre-WWII luxury cars (a trick Chrysler tried once already with the Horizon), PSA can reference one of the most influential (if forgotten) small-car brands. At least, it can if it deals with that most modern of problems, the patent troll. AutoBild reports

Joachim W. “Simca” signed in September 2007 at the German Patent and Trademark Office as a trademark for the class “cars”. Then a cancellation request was made ​​- probably by Peugeot. The French made at least one attempt to register Simca on 2 June 2008, whereupon Joachim W. submitted an application for cancellation.

It’s not clear what claim Mr Simca might have on the name, as SIMCA stands for Société Industrielle de Mécanique et Carrosserie Automobile.

The French government has its hands full pounding Gadaffi’s tanks and artillery pieces into pulp. At the same time, the French government decided not to destabilize carmaker Renault. French Industry Minister Eric Besson said the latter part when he was asked whether he’s calling for Carlos Ghosn’s head after the espionage scandal had turned into a farce.

“As industry minister, I hear the voice of the people asking for punishment, but the industry minister’s greater concern at this time is not to destabilize Renault any further,” Besson told RFI radio ( via Reuters) in an interview.

It appears that the Renault EV espionage case crazy train has rolled to a halt, as the FT reports that CEO Carlos Ghosn and his right-hand-man Patrick Pélata have apologized to the three executives they accused of spying. According to a Renault press release,

Mr Ghosn and Mr Pélata now plan to meet the executives, promising compensation for “serious prejudice” to their reputations and careers

And according to BusinessWeek, Mr Pélata will likely be offering his resignation today, as

Renault called an emergency board meeting for 4 p.m. local time that may lead to sanctions against managers involved in the case, two people familiar with the matter said. Prosecutors yesterday issued “organized fraud” charges against Dominique Gevrey, the security chief whose internal investigation led to the firing of upstream development chief Michel Balthazard and two other executives.

But, as AN [sub]’s James Treece puts it, Pélata likely won’t stay unemployed for long, as being fired for loyalty is almost a positive in the super-competitive world of high-level auto executives. The mystery now: did Mr Gevrey simply attempt to defraud Renault, or was he part of a coordinated effort to destabilize the French automaker? Gevrey won’t reveal the source of his information about espionage inside Renault, but we may yet learn more about this strange farce if he cracks under investigation.

[UPDATE via AN [sub]: Ghosn and Pélata plan to give up their 2010 bonuses and profits from 2011 stock options after they had to apologize publicly to the three men earlier on Monday, Renault said in a statement.]

The Renault spy farce has taken yet another, this time totally unexpected twist. Presumptive spy catchers at Renault are behind bars. Renault’s security managers Marc Tixador and Dominique Gevrey are being held for questioning at the offices of France’s DCRI domestic intelligence agency which is investigating the matter, a spokeswoman for the Paris prosecutor told Reuters.

Ever since the Renault spy story broke, we had our doubts. It simply did not pass the smell test. Now, the smelly stuff is hitting the fan. “France faced severe political embarrassment on Friday after carmaker Renault said the three top executives it sacked for industrial espionage in January might not be spies after all,” reports Reuters.

In an interview with Le Figaro, Renault COO Patrick Pelata, the man who was the driving force behind the scandal admitted: “A number of elements lead us to doubt.” He is not alone in his doubts.

France’s PSA wants to get more expensive and cheaper at the same time. PSA plans to up-position their Peugeot and Citroen plans. Probably envious of Renaults success with their Dacia brand, PSA wants to create a completely new low-cost brand, says Automobilwoche [sub].