Fiat / Renault wedding on the rocks, Subaru is at the height of Toyota on electric cars

June 6, 2019 by Steve Hanley

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well this did not take a long time. Just last week, Fiat Chrysler was hot to go to bed with Renault, but it is now announced that the commitment is broken. That the game of blame begins!

according to The GuardianThe planned marriage failed because the French government, which holds 15% of Renault's shares, wanted to be assured that the merger would not lead to the closure of factories in France nor to the layoff of French workers. The government wanted more time to evaluate the impact of the agreement on French national interests. That will not happen, Fiat Chrysler responded, and things got worse from there.

French Finance Minister Bruno Le Maire said the government had engaged constructively with all the negotiating partners, but that agreement had not been reached on all the conditions of a government. "What remained to be obtained was the explicit support of Nissan." The Japanese manufacturer also holds 15% stake in Renault, which gives it a status equal to that of the French government.

The Mayor told the press on June 5 that it was not necessary to reach a deal hastily, claiming that the government wanted guarantees on the jobs of Renault, a Paris headquarters and the government d & # 39; company. "We want to make this merger," he told BFM TV. For its part, Fiat Chyrsler said "to remain firmly convinced of the logic of convincing transformation of the proposal".

The FCA therefore wants to go forward, the French government wants more time to show due diligence and no one really knows what Nissan represents in all of this. Nissan is suspected of being behind the arrest and imprisonment of Carlos Ghosn, president of the Renault group, as a way to boost leverage in the strategy. restructuring of its agreement with Renault.

There may be an agreement here again to the pirouette parts and posture for the cameras. The CFA desperately needs help getting into the electric vehicle revolution after ten years of hope of continuing to sell Jeeps and vans, which do not sell very well outside of the United States.

Toyota and Subaru will cooperate on electric vehicles.

Elon Musk and Tesla have certainly lit a fire under the automobile industry. After BMW and Jaguar Land Rover announced this week to work together on the development of electric vehicle powertrains, Toyota and Subaru have announced plans to do the same. "Subaru and Toyota believe that it is necessary to pursue a business model that exceeds the conventions, transcending industrial boundaries," said automakers in a joint statement. Together they will develop a new electric SUV, based on Subaru's well-known expertise in all-wheel drive and Toyota's electrification skills, according to a report by CNBC.

Expect. What? Subarus uses a mechanical transmission, which does not apply to electric cars and Toyota is still heavily invested in hybrid and fuel cell technologies. Maybe the new car is equipped with a Subaru piston engine and a transmission coupled to a Toyota Prius battery and a fuel cell range extender? Nah, it's crazy! Is not it?

The two companies have already collaborated on a sports car called Toyota 86 or Subaru BRZ. Developed jointly by both companies, it is very popular with sports car enthusiasts. Yet the combined sales have been modest to say the least. Toyota currently owns 16.77% of Subaru.

The capital costs associated with the development of electric cars are enormous, pushing many existing car manufacturers into the arms of their competitors to better manage these costs. Industry analysts like to criticize Tesla for its lack of profitability, but in reality, the auto industry as a whole is undergoing a huge upheaval as emission standards increase worldwide (except in the US) and sales of conventional cars are declining. Look for more convergence between existing businesses in the future.

Keywords: FCA, Fiat-Chrysler, Nissan, Renault, Subaru, Toyota