CARLOS GHOSN

9 Winners and Losers of 2019

January 7, 2020 by admin 2 Comments

Ram Trucks
Ram Truck brand sales topped 700,000 units sold for the first time in 2019.

It’s a wrap: 2019 is in the books. And if you’re thinking we’re a bit late sharing this information, hold on: the U.S. auto industry finished reporting its annual sales on Monday, closing out an extended period of news releases hyping the details.

We’ll cut to the chase and look at the winners and losers for the past year.

Winner: U.S. auto industry. This was supposed to be the year the industry fell below 17 million new light vehicles sold. Indeed, last year was also supposed to fall short. But neither year did. Yes, sales were down slightly year over year, by 1.6-percent, but managed to finish around 17.1 million units sold for the year. That’s five consecutive years of topping the 17 million mark. Importantly, there’s a chance we’ll see a sixth year for 2020.

Loser: American consumers. Stop right there: purchasing a new vehicle isn’t necessarily a bad thing. What’s problematic is the loan terms, which are averaging 68 months. Worse, is the availability of long-term loans of 72 and 84 months, respectively. That means there are a greater number of consumers paying for their new vehicle for seven years. What’s not always apparent are consumers rolling over their loan balances into a new loan. That’s a costly decision and very concerning.

Winner: Ram 1500 pickup truck. Yes, the Ford F-150 is the indisputable pickup truck king for four decades running. Indeed, the Ford F-Series recorded 896,526 units sold, down 1.41-percent versus the year earlier. The big news is the Ram 1500, which notched 633,694 vehicles sold, an increase of 18.01 percent. Not only is the Ram Pickup a big gainer, but it has displaced the Chevrolet Silverado as the number two seller in the U.S. Though Chevrolet has egg on its face by losing its place to Ram, GM still builds more full-size pickup trucks, selling 807,894 units of the Silverado and GMC Sierra combined.

Prius sales are falling, thanks in part to new models such as this Toyota Corolla Hybrid.

Loser: Toyota Prius Family. Hybrid sales continue to fall as fuel prices remain stable and well below historical highs reached in 2012 at $3.64 per gallon. With prices averaging $2.55 per gallon in December, models such as the Toyota Prius continue to lose appeal. Indeed, Prius sales fell by 20.84-percent in 2019 to 69,718 units. That’s less than half the Prius’ sold in 2012 and well below the peak 181K units purchased in 2007. Some of the sales have gone to other Toyota hybrid models as well as to new competitors, such as the Hyundai Ioniq.

Winner: Fiat Chrysler. The deal is all about done. That deal has Fiat Chrysler merging with the PSA Groupe to form the world’s fourth-largest automaker. FCA is a winner as it was the dream of its late CEO Sergio Marchionne to find a partner. The new company will realize economies of scale and be better positioned to work through vehicle electrification and autonomous driving, which are the two largest and costliest technologies of our time. Without a merger, FCA most likely would have been left behind.

Loser: Sedans. Remember when sedans (and coupes and convertibles) ruled the road? Sure, there were some pickup trucks and vans in the mix, but the family vehicle of choice was the sedan as well as its station wagon variant. Well, car sales continue to fall and now represent about one-quarter of the market. We said good-bye to the Chevrolet Cruze, Ford Taurus, and to the Hyundai Azera last year. Other Ford and Chevrolet models are also gone and the Volkswagen Beetle is no more. Likely, car sales will continue to fall for a few years before finally stabilizing. Manufacturers that stay in the segment may find the remaining market too good to ignore.

2019 Nissan Altima SR — Sedan sales are declining but new models such as this Nissan Altima are keeping the segment fresh.

Winner: Carlos Ghosn. The former Nissan and Renault CEO is now a free man. At least he’s freed from Japanese confinement as he snook his way out of the country and found his way to Lebanon. How he got there is a story for the ages and one that isn’t quite clear just yet. Regardless, Mr. Ghosn should stay out of jail as long as Lebanon ignores an international warrant and public opinion aligns with the executive as he tells his story. On the flip side, Nissan may prove the biggest loser, especially if the details of how it all went down raise serious questions.

Loser: UAW. The UAW appears the winner following a protracted strike with GM. Organized labor certainly looked strong as it kept GM plants shut for more than a month, representing the longest strike in nearly 50 years. The settlement yielded several gains for the rank and file, including forging a pathway to permanent employment for temporary workers. Also, GM created a shorter route to top-tier wages, agreed to keep open and transform one assembly plant targeted for closure, and maintained its strong health benefits for employees. So, how is the UAW the loser? The union failed to organize Volkswagen’s Tennessee plant, it remains shut out of Nissan factories in the U.S. and continues to lose members. Then there is the matter of a corruption scandal involving union brass. Several leaders accepted kickbacks from UAW vendors and contractors, enriching themselves at members’ expense. At least 10 individuals were involved, giving the UAW a black eye in the process.

Winner: New models. We like new and updated models. And we show our approval (or disapproval) in the way we carry out our purchase decisions. Several new models enjoyed success in 2019, registering big gains or significant sales as they debuted. Among them were the Audi Q8, BMW Z4, Cadillac XT4, Genesis G70, Nissan Kicks, and the Subaru Ascent. Other winners included the Ford Expedition, Honda Insight, Mercedes-Benz AMG GT, and the Mitsubishi Eclipse Cross.

The Audi Q8 debuted with robust sales to show for it.

2020 Auto Trends

We have a few predictions for 2020 to share, including our guess auto sales will narrowly top 17 million units for an unprecedented sixth consecutive year.

Further, we think the Chevrolet Corvette’s debut will be followed by announcements of even more powerful models. Moreover, Rivian Motors will get its first models to the market before the year closes, Ford and Volkswagen will form an alliance, and GM will not resurrect its Hummer brand. Lastly, Hyundai’s first pickup truck will arrive, Ford will keep the Mustang name on the Mach-E electric crossover, and Jeep will unveil its full-size SUVs.

Ghosn With the Wind: Nissan’s Former CEO Flees Japan, Now Resides in Lebanon

January 3, 2020 by admin Leave a Comment

Carlos Ghosn before his downfall. Photo courtesy of Nissan News.

Talk about a story filled with intrigue!

Former Nissan CEO Carlos Ghosn (pronounced Gone), under the watchful eyes of Japanese authorities, secretly left his home late last month and made his way to Lebanon, where he has taken residence. The executive’s bold move, certain to become the script for a Hollywood thriller, was illegal. That said, Ghosn insists he had no choice as he found the Japanese judicial system was “rigged” against him.

Ghosn’s story starts in 1999, when he crafted the alliance that united France’s Renault automobile group with Nissan Motors. This unlikely alliance effectively saved Nissan, while allowing Renault to tap its partner for a variety of vehicles. Later, Mitsubishi was added to the alliance, effectively forming the largest alliance of its kind in the world.

Although the two principal manufacturers benefited by working together, Ghosn was intent on bringing the companies closer together, likely through a full merger. Apparently, that move did not sit well with Nissan executives (perhaps valuing their independence), who then allegedly plotted to remove Ghosn from his position. Charges of financial impropriety were lodged against him and both companies removed Ghosn from their executive roles.

Meanwhile, Japanese authorities jailed Ghosn with the intent of convicting him of a series of crimes, which likely would have kept him Incarcerated until his death. The Japanese legal system is quite different from what we’re used to in the West, particularly in the United States, where an individual is considered innocent until proven guilty.

In Japan, an individual may stay in jail for months, if not years, until his trial is completed. Ghosn was not allowed attorney representation early on, and even then the contact was always limited. Twice he was released on bail, following arrest, the second time confined to his home in Japan under the watchful eyes of the authorities. He was also restricted from seeing his family, including his wife.

Just how Ghosn managed to leave Japan for Lebanon remains a mystery. A rumor that he was packed in a musical instrument box and shipped to Lebanon with a stop in Turkey, was one of the first stories to surface. The plot thickened when it appeared that the executive’s own family was involved, an allegation Ghosn later denied. At this point, we do not know the complete details of his whirlwind escape, but they will eventually emerge.

Beyond his uncanny escape and emergence in Lebanon, Ghosn will now fight back by settling some old scores. Expect the former executive to name names and point out misdeeds for both Nissan and Renault executives. Published reports indicate that the information he plans to share could prove devastating, especially to Nissan, which has been losing money and market share over the past few years.

Moreover, what’s also likely to be scrutinized is Japan’s legal system, which routinely jails individuals as prosecutors enjoy a conviction rate above 99 percent. That system essentially ensured conviction for Ghosn, even as he insisted upon his innocence.

Another result of Ghosn’s new-found freedom is the Renault-Nissan alliance itself – depending on what Ghosn shares — as its future may be in peril. Regardless, the fallout will be enormous as corporate and government officials wrestle with his escape and the subsequent detailing of Ghosn’s allegations.

Likely, Ghosn will support his charges with witnesses and perhaps documentation, both of which could make this story front pages news for a long time.

As for Ghosn’ future, it likely lies in Lebanon as this Middle Eastern country does not have an extradition treaty with Japan. Ghosn also has French and Brazilian passports, but they’re in the hands of his attorney in Japan. On Thursday, Interpol delivered a “red notice” to Lebanon which is “a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.” It isn’t an arrest warrant, but it does mean Lebanese authorities will interview Ghosn to get his side of the story in this highly charged affair.

See Also — Top Automotive Stories of 2019

Fab Five

1. UAW Strike Labors On – The UAW, itself embroiled in scandal, went ahead and launched a protracted strike against GM. Originally expected to end within a few days, the strike lasted longer than a month, causing the longest shutdown in the past half-century. GM lost billions of dollars during the strike, agreeing to keep one plant open and save some jobs. We think the labor victory will ultimately prove shallow as it’ll force GM to find additional ways to save money long term, with job loss gradually increasing.

2. Carlos Ghosn Debacle – Is he guilty or not? Former Nissan CEO Carlos Ghosn was jailed in November 2018 for a variety of charges, including fraud. What was shocking wasn’t so much the alleged scandal, but how the Japanese justice system treated the former executive. Ghosn was isolated, often without legal representation, and the charges against him seemed stacked. On the next to the last day of the year, Ghosn flew to Lebanon where he most likely will stay and avoid a return to Japan. The story isn’t over yet nor are the many twists and turns that defined this relationship.

3. FCA-PSA Merger – One year after its Sergio Marchionne died, Fiat Chrysler Automobiles has fulfilled one of the CEO’s important goals: a full merger with another automaker. FCA, the product of a big merger earlier this decade, is set to join forces with France’s PSA Groupe to form the world’s fourth-largest automaker. The deal should conclude by late 2020, but we may not know for a few more years the status of various brands (including the eponymous Chrysler) and certain models (the Dodge Challenger and Charger, for example).

4. Introducing An All-New Corvette – We won’t see a new Corvette for a few months, as production was delayed due to the strike as mentioned in our first story. What’s significant about the Corvette is that GM will finally transition its sports car to a mid-engine layout. As a result, even the base Stringray will immediately become the fastest Corvette ever. Also of note is the base price, as that will come in at under $60,000. Soon after the new model arrives, we should hear about follow-up versions with more powerful engines and the lofty price tags to go with it.

5. Ford Adds an Electric Mustang – Ford’s Mustang is America’s pony car, but it will soon be joined by an all-electric SUV. The Ford Mustang Mach-E is its name, an all-new model built on a separate platform, but sporting the iconic model’s name. With many Mustang styling cues, the EV gives a connection to the coupe, but the resemblance ends there. We dislike Ford’s decision and have followed the anger of Mustang faithful, including some who feel deeply betrayed. There’s still time for Ford to change the name, but we doubt it will.

Honorable Mention

Among the other stories of note for 2019 include Nissan’s drop in market share, the Tesla Cybertruck debut, the expanding financial backing for upstart Rivian Automotive, the electric truck/utility vehicle maker, and the ongoing shift away from cars to crossovers and trucks.

Stories about driverless cars and full electrification dominated; we’re also on the cusp of seeing the first Chinese automotive brand arrive stateside.

Possible Scenarios

Looking ahead, we expect many of the current stories to play out, with perhaps a few twists along the way. Auto Trends expects another blockbuster merger announcement in 2020 with perhaps Volkswagen and Ford tying the knot. A suitor for GM seems possible, but will Hyundai/Kia make the bold move to acquire or will it allow a Chinese company to jump in first? Finally, we’ll continue to see more car models die, but a few will hang on and likely thrive in a smaller market.

Image by Gerd Altmann from Pixabay

Deal Undone:
Fiat Chrysler Renault Merger

June 7, 2019 by admin 2 Comments

It was a merger of equals, bringing together automakers with a strong presence in Europe and the Americas. The deal seemed to emerge from nowhere and just as quickly it died. Whatever thoughts you had about a Fiat Chrysler Renault tie-up, it isn’t going to happen. At least not in the near future.

Fiat suddenly pulled out of the deal on Wednesday, reportedly weary of the delays it ultimately pinned on the French government. Renault itself was onboard — but the company is also partially owned by the French, thus government involvement was and is an important consideration in the manner the automaker is operated.

Ghosn is Gone

Apparently, the French were waiting on Nissan’s feedback, a company allied with Renault. Although not directly involved in the merger, Nissan would have a significant say in how the alliance would continue after the merger. At first, the Japanese automaker seemed indifferent to the merger, but the French were concerned that the alliance might unravel later. Further, where Carlos Ghosn once held Renault, Nissan, and Mitsubishi together, his leadership is no longer a factor. In fact, Ghosn is in legal trouble with Nissan and that dilemma extends to the Japanese government itself.

Oh, what a tangled web we weave! (When first we practise to deceive!)

Although deception isn’t listed as one of the reasons for the failed merger (with apologies to Sir Walter Scott), a lack of trust certainly was. Indeed, the post-mortem showed much weariness on Fiat’s part in getting the French government’s approval, which again, was based on Nissan’s backing. An initial delay turned into a second delay, which soon morphed into a postponement of at least five days. That last setback was too much, so FCA officially canceled the deal.

Bigland Whistleblower Lawsuit

While all this was happening, another story emerged that might have helped scuttle the deal. On Wednesday, FCA’s head of Ram truck sales, Reid Bigland, filed a whistleblower lawsuit against his employer. This stunning development comes as the federal government continues to review the automaker’s sales figures.

In particular, the SEC noted that the company reported inflated sales, which could have an impact on investors. In his lawsuit, Bigland charged that FCA pinned the blame on him and withheld most of his compensation in 2018, in part to cover fines it attributes to the executive. The executive is seeking to clear his name and regain lost compensation, reportedly in the millions of dollars.

Bigland is also the only FCA executive to sell all his shares in the automaker. That said, CEO Mike Manley sold $3.5 million in company shares immediately after the FCA-Renault merger was announced. Exactly what the sales figures and share selling have to do with the aborted merger isn’t known, although it adds an interesting wrinkle to the story.

FCA: Moving Forward

With the failed merger now in its rearview mirror, FCA will have to address the Bigland suit and settle with the federal government. It is never a good thing when a top executive files suit, especially one from one someone so influential. Bigland is also the CEO of FCA Canada.

Besides the Bigland suit, the company must continue its focus on two core brands: Jeep and Ram. Jeep has become the company’s star player, driving sales and profits to bolster the company. The automaker plans to build a new manufacturing plant in Detroit, where it will produce a pair of full-size and upscale Jeep models.

The Ram brand is also thriving and delivers its own share of the profits. The redesigned Ram 1500 recently nudged the Chevrolet Silverado out of second place among full-size pickup trucks and continues to garner a larger slice of the sales pie.

Finally, FCA will have to plan a future without another automaker, at least not with Renault. Had it merged with Renault, it would have gained access to the French brand’s electric vehicle platform, saving the company billions of dollars. As it now stands, FCA will bear that cost alone along with the added expense of developing autonomous vehicles in-house.

Divorce Decree Finalized for Volkswagen, Suzuki

September 2, 2015 by admin Leave a Comment

A handshake doesn’t mean an alliance will succeed.

Six years after Volkswagen and Suzuki forged an alliance, the London Court of International Arbitration issued a divorce decree. That decree followed an appeal by Suzuki nearly four years earlier to dissolve the alliance, one where Suzuki demanded that Volkswagen sell its 19.9 percent stake in the Japanese automaker.

The decree means that Volkswagen may reap $3.8 billion from selling its shares based on Suzuki’s stock value at the close of business last Friday. Suzuki will be allowed to buy the shares, but it is also likely they’ll have to pay Volkswagen compensation as the court found the automaker breached the contract reports the Wall Street Journal. Further arbitration will settle the compensation claim and tie up other loose ends.

A Failed Alliance

The Volkswagen-Suzuki alliance never got off the ground as no joint projects were consummated. As part of the alliance, Suzuki had sought access to Volkswagen’s fuel-saving technologies, while Volkswagen hoped to gain a larger stake in India, a market dominated by Maruti Suzuki.

Cultural differences and misunderstandings impacted the alliance. In 2011, Volkswagen charged Suzuki with breaching the agreement when the Japanese automaker sought to purchase diesel engines from Fiat sPa, the company now known as Fiat Chrysler Automobiles. Suzuki insisted that it had the right to buy from Fiat, but Volkswagen was equally as insistent in its opposition.

Suzuki also pushed back against Volkswagen for including the company in its brand portfolio. But the disagreement runs much deeper than that as mutual distrust built up early and came to a head just 21 months into the alliance. Automotive News ran a report in early August detailing the troubled alliance based on internal documents it had secured.

See Also — Car Manufacturers: Who Owns What?

A Pattern of Failures

The dissolution of the Volkswagen-Suzuki alliance follows several other failed attempts to bring disparate automakers together. For example, shortly after GM emerged from bankruptcy, it forged a limited alliance with Peugeot, the French automaker. GM took a nominal 7 percent stake in Peugeot, but sold its shares in late 2013, less than two years after forging the alliance. The alliance was established in a bid to increase economies of scale, but it later crumbled.

DaimlerChrysler is another example of a failed alliance. The two companies joined forces in 1998 as part of a $37 billion “merger of equals.” Although several collaborative projects were completed, the two parties were never on the same page with the Americans charging that the Germans were controlling the entity. The two parted ways less than a decade later and at a great financial loss to Daimler.

Examples of Successful Alliances

Alliances that do work typically involve a healthy company absorbing or merging with one that is ready to go out of business. In the 1980s, Chrysler purchased American Motors, and from that acquisition, it was able to gain Jeep.

In 1999, Renault and Nissan forged an alliance as the Japanese automaker found itself in perilous financial shape. The two companies — one French, the other Japanese — have managed to make things work by remaining relatively independent of each other. It also helps that Renault’s CEO, Carlos Ghosn, became Nissan’s CEO. Another strong leader, Sergio Marchionne, has helped Fiat and Chrysler operate smoothly, but as one company.

Suzuki is not likely to seek a new partner, having valued its independence too much to work in that capacity. Then again, it is doubtful that any other automaker would risk forging an alliance with the company as long as its patriarch and CEO, Osamu Suzuki, remains involved in the business. Despite having relinquished his role as president and chief operating officer to his son, Toshihiro, the senior Suzuki will maintain his formidable presence within the company. His presence is certain to thwart any potential hookups that dilute the company’s self-determination.

Artwork courtesy of Wikimedia.

Autonomous Driving: Well, Not Exactly

July 21, 2014 by admin Leave a Comment

Autonomous driving is one of the buzzwords that piques the interest of futurists. Just the thought of driving from Point A to Point B while taking a nap has some people clamoring for the technology. Certainly the safety aspect is important too, thus insurers, regulators and manufacturers are also advocating for driverless cars.

One of the automotive executives at the forefront of advancing autonomous drive is Carlos Ghosn, president and CEO of Nissan Motor Co., Ltd. His self-driving vehicle pronouncements have been carefully followed, including what plans the Renault-Nissan alliance has to further this initiative.

Well, Ghosn has clarified his earlier remarks, dialing down expectations in the process. No Nissan-built model will drive itself in 2020, the year when Ghosn had earlier pegged for bringing the technology to the market.

Autonomous Driving Lite

Nissan autonomous driving Instead, Nissan plans to offer automated lane controls and highway traffic management systems, what will be introduced over the next four years. In essence, Nissan is taking a more conservative approach as it progressively rolling out technologies in advance of full-scale driverless cars.

By the end of 2016, Nissan will make available the next two technologies under its autonomous drive strategy, said Mr. Ghosn. We are bringing to market a traffic-jam pilot, a technology enabling cars to drive autonomously – and safely – on congested highways. In the same timeframe, we will make fully-automated parking systems available across a wide range of vehicles.

Ghosn presented Nissan’s goals in a speech to the Foreign Correspondents Club of Japan, last Wed. He said that the initial technologies will be followed by intersection-autonomy, what will permit vehicles to “negotiate city cross-roads without driver intervention.” Even so, Ghosn noted that “self-driving cars remain a long way from commercial reality.”

Overcoming Regulatory Hurdles

The Nissan executive admitted that there are quite a few hurdles to overcome before full-blown autonomous driving can become a reality. He noted that a “regulatory minefield” remains a huge obstacle, one composed not just of many nations, but various states and local jurisdictions that each have their own say.

Choosing the term “regulatory minefield” speaks volumes as it sends a signal that even with the technology ready to go, government approval will slow it down.

Four Major Trends

Ghosn outlined what he says as “four major trends” that would drive demand for autonomous drive technologies, as well as increase interest in zero-emission vehicles such as the Nissan LEAF, and greater in-car connectivity. The four trends are:

“(First), …the rise of global mega-cities, which is increasing the need for innovations to ease congestion, reducing emissions and improve traffic management.

Second, demand is growing for in-car communications that meet or exceed the high expectations of the digital generation. Our vehicles must be as connected as the smartphones and tablets that this generation depends upon day in and day out.

Third, there is the need to bridge the generation gap by providing vehicles that appeal to the worlds growing population of seniors. These consumers want technologies and automated systems that enable them to drive safely, for longer.

“Fourth s the pressing need to embrace gender diversity. This means recognizing the vital role that women play as consumer-purchasers, decision-makers and managers throughout the car industry.

Enhanced Communications

For its part Nissan expects to equip more than 1.5 million of its vehicles with enhanced communications by next year, by making use of cloud-based systems that provide improved access to social media, entertainment apps, and voice recognition software.

Said Ghosn, “We will continue to make our cars more connected. We plan to lead in delivering Autonomous Drive vehicles. And, in every part of the business, we are recognizing the unique needs of elderly drivers and the impact and influence of female customers.

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MIT Names Audi, Toyota As Disruptive Companies

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Carlos Tavares Named PSA Peugeot Citroen Head

November 28, 2013 by admin 1 Comment

Up until three months ago, Carlos Tavares was the chief operating officer for Renault, the French automaker in alliance with Nissan. Tavares left the company in Aug. after Bloomberg published an article that quoted him as saying that he would like to run another automaker as Renault/Nissan CEO Carlos Ghosn apparently wasn’t going anywhere.

Those words probably didn’t sit too well with Ghosn who at 59 wasn’t ready to relinquish the reigns to Tavares, 55, or anyone else for that matter. Although he was soon out of a job, Tavares was expected to land safely elsewhere, perhaps leading GM or Ford, two companies he has expressed interest in.

PSA Peugeot Citroen

Earlier this week Tavares did land on his feet when rival PSA Peugeot Citroen announced that he will join the company’s management board effective Jan. 1. Later in the year Tavares will replace current PSA CEO Phillippe Varin, who plans to retire.

Peugeot is the second largest car manufacturer in Europe after Volkswagen. The French government and GM own stakes in the company, but the automaker has also been seeking a partnership with Dongfeng Motors, a Chinese manufacturer. In Oct., Reuters reported that PSA Peugeot Citroen was preparing a 3 billion euro (US $4.1 billion) capital increase with monies contributed equally by the French government and Dongfeng, itself owned by the Chinese government.

China’s Dongfeng Motors

Through the originally proposed financial initiative, both Dongfeng and the French government would each gain a 20 to 30 percent stake in PSA. The move would also cause the Peugeot family to lose control of the company as its 25.4 percent stake and 38.1 percent voting share would be reduced. GM’s own 7 percent share would also be diluted once an agreement was made. However, later reports have indicated that Dongfeng is not interested in retaining a stake larger than 10 percent as reported by Automotive News Europe.

Regardless of the number of shares taken, Peugeot has little choice to look for outside help as the company continues to get hammered in the weak European market where its strength lies. PSA has a presence overseas, but it is absent from one important market: North America. Despite its relationship with GM or perhaps because of it, the Peugeot and Citroen brands are not likely to return to the US market, last served more than two decades ago.

Slumping European Market

Peugeot has been mired in a slump for six years as the European market continues to suffer high unemployment and weak growth, especially in western nations. Tavares brings with him more than three decades of automotive experience at Renault, culminating as Ghosn’ second-in-command. Tavares had planned to add both sports car and luxury brands to Renault before he left, moves that could have raised Renault’s global visibility.

Tavares comes to a money losing operation, one that has seen its automotive unit lose 510 million euros (US$691.7 million as of publication) during the first half of 2013. Returning to profitability will require additional sacrifices, what Varin has already required by closing manufacturing plants and through the elimination of more than 11,000 jobs. The French government is eager to stem job losses, as unemployment has been rising steadily moving from 9.5 percent in late 2011 to an estimated 11 percent today.

Tavares is a native of Portugal and speaks French fluently. Thus, heading to Peugeot keeps him in a market he knows well and removes his name from potential successors at GM and Ford. Both US automakers have several of their own executives that might step up when Dan Akerson (GM) and Alan Mulally (Ford) retire. But in the automotive industry job hopping is not only expected, but it is especially required for executives seeking to move up.

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Award Winner: Nissan Resonance Concept Crossover

January 18, 2013 by admin Leave a Comment

Although it has been said that most concept vehicles are never built, there is a very good chance that the Nissan Resonance Concept will go into production or at least a vehicle very close to it. The concept crossover SUV was unveiled at the 2013 North American International Auto Show in Detroit this January, an all-wheel-drive vehicle powered by a hybrid electric drivetrain.

Nissan Murano

Some have suggested that the Nissan Resonance Concept is the next generation Nissan Murano. That is a possibility as the next Murano is ready for an update and it could be offered in gasoline and hybrid versions. Nissan, as bold as it has been with its LEAF production, might possibly forgo the gas engine altogether and produce a hybrid alone much as Ford has done with it C-MAX that is sold only in HEV and PHEV versions.

The Resonance Concept attracted a large following at the 2013 NAIAS and won the esteemed 2013 EyesOn Design Award on Jan. 15 for the best concept vehicle. The award recognizes the innovative and forward-thinking work that automotive designers offer in both production and concept vehicles. The judges pointed to a number of positive features about the concept including its floating roof design, steeply raked A-pillars and the full-length glass panel that flows back to the D-pillars. In other words, Nissans concept resonated with the judges.

Design Team

Nissans senior vice president and chief creative officer, Shiro Nakamura, led the San Diego design team that crafted the Resonance Concept. The interior is based on what the designers thought that flying first class in a space craft might be like, its bright white interior and flowing cabin design advancing that thinking.

Powering the Resonance Concept is a hybrid electric drivetrain that advances Nissans patented one motor, two clutch system. That design brings together a small gasoline engine and an electric motor that work with a lithium-ion battery pack to form an advanced energy management system.

Nissan News

Orchestrating the changes that Nissan is undertaking is Nissan President and CEO Carlos Ghosn. At the NAIAS, media caught up with him to get an update about the companys direction and what future trends it will be positioned to advance.

For this year, Ghosn predicts that sales will improve in China, held down in 2012 as China and Japan worked through a territorial dispute. The Russian market should present an enormous opportunity for growth as Nissan has invested in automaker avtoVAZ. India and Brazil, representing the other two BRIC countries, should perform well too. Always having an impact on the Nissan bottom line is a strong yen, with Ghosn expecting that its value against the dollar will offer little movement in 2013.

Ghosn also expects that sales of its LEAF EV will rise this year, especially in the United States where sales increased by just one percent in 2012. The LEAF is now built in Tennessee and its price has been lowered by 18 percent. Ghosn also offered that the first self-driving cars will take to the road in 2020, about five years earlier than what some other experts have offered.

Photo courtesy of Nissan North America, Inc.