William Maley

In under 24 hours, the rumor has become reality. Nissan will acquire 34 percent of Mitsubishi Motors for 237 billion yen (about $2.17 billion). This makes Nissan the single-largest shareholder in the automaker. Speaking at a press briefing announcing the deal, Nissan CEO Carlos Ghosn said this alliance will cover purchasing, common platforms, joint manufacturing, technology development, and target shared cost savings. The alliance will also contribute management expertise to help Mitsubishi regain public trust. “It represents a win-win. We believe in the potential of Mitsubishi Motors,” said Ghosn. In statements from the two companies, an agreement will be signed by May 25th where Nissan can name four directors to the Mitsubishi Motors board. Nissan can also name one of their directors as a chairman for Mitsubishi. Osamu Masuko, chairman of Mitsubishi Motors explained the two companies have been discussing ways to extend their partnership for some time. Mitsubishi and Nissan currently have a deal concerning minicars. When the scandal came to light, the talks accelerated. “We had to do something quite daring. It is not an easy task to restore trust,” said Masuko. Makuko also notes that a takeover like this would have happened sooner or later due to Mitsubishi lacking the resources to compete effectively on its own. “This would have happened one day,” he said. This deal does open Nissan to possible issues concerning the problems facing Mitsubishi and how much money will need to be spent. Ghosn explained that Mitsubishi was very open about the scale of problems it faces and that Nissan would only complete the deal after it has done an investigation into the investment. Source: Automotive News (Subscription Required), New York Times, Mitsubishi, Nissan Press Release is on Page 2 Nissan and Mitsubishi Motors forge strategic alliance; Nissan to take 34% stake in Mitsubishi Motors for 237 billion yen YOKOHAMA and TOKYO, Japan – Nissan Motor Co., Ltd., (“Nissan”), and Mitsubishi Motors Corporation, (“MMC”) announced that they have signed a Basic Agreement today to form a far-reaching strategic alliance between the two Japanese automakers. Following an MMC share issue, Nissan will take a 34 percent equity stake in MMC for 237 billion yen. The strategic alliance will extend an existing partnership between Nissan and MMC, under which the two companies have jointly collaborated for the past five years. Nissan and MMC have agreed to cooperate in areas including purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets. Carlos Ghosn, chief executive and president of Nissan, said: “This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors. It creates a dynamic new force in the automotive industry that will cooperate intensively, and generate sizeable synergies. We will be the largest shareholder of MMC, respecting their brand, their history and boosting their growth prospects. We will support MMC as they address their challenges and welcome them as the newest member of our enlarged Alliance family.” Osamu Masuko, chairman of the board and chief executive of MMC, said: “Through its long history of successful partnerships Nissan Motor has developed a deep knowledge of maximizing the benefits from alliance partnerships. This agreement will create long-term value needed for our two companies to progress towards the future. We will achieve long term value through deepening our strategic partnership including sharing resources such as development, as well as joint procurement.” Under the terms of the transaction, Nissan will purchase 506.6 million newly issued MMC shares at a price of 468.52 yen per share. The price per share reflects the volume weighted average price over the period between April 21, 2016 and including May 11, 2016. Nissan will become the largest shareholder of MMC on closing. MMC and Nissan expect Mitsubishi Heavy Industries, Mitsubishi Corporation and The Bank of Tokyo – Mitsubishi UFJ to maintain a significant collective ownership stake in Mitsubishi Motors, and to support the strategic alliance. The transaction is subject to the signing of a definitive Alliance Agreement, expected by the end of May 2016, the signing of a shareholders agreement with the current Mitsubishi Group shareholders of MMC and regulatory approvals. It is expected to close by the end of the year. The decision by Nissan to acquire a strategic stake in MMC marks the latest expansion of its Alliance model, built around a 17-year cross shareholding arrangement with Renault. Nissan has also acquired stakes or signed partnerships with other automotive groups including Daimler, and AvtoVaz. On closing, MMC will propose Nissan nominees as board directors in proportion to Nissan’s voting rights, including a Nissan nominee to become Chairman of the Board. View full article

No. This morning at a press conference, Mitsubishi Motors chairman Osamu Masuko said a takeover was going to happen sooner or later. Plus, Mitsubishi already had a connection with Nissan concerning kei cars in Japan and they were in talks about extending this partnership.

BTW, the story has been updated with a statement from both automakers.

I think so, but I'll double check. Edit: It looks like it is jointly owned by Diamler and Mitsubishi.

Aside from world domination?

We weren't expecting this: Nissan, the automaker who discovered the manipulation of fuel economy figures at Mitsubishi Motors, is currently in the final stages of buying a controlling stake into the company. According to reports from NHK and the Nikkei Asian Review, Nissan will spend roughly 200 billion Yen (about $1.8 billion) to acquire over 30 percent interest in Mitsubishi Motors. This would make Nissan the largest shareholder in the company, surpassing Mitsubishi Heavy Industries, which currently has a 20 percent stake. This news comes after Mitsubishi announced that all of its models sold in Japan since 1991 may have inflated fuel economy numbers. Since the scandal came to light, shares in Mitsubishi Motors have dropped 43 percent. Sales of Mitsubishi vehicles in Japan have also taken a turn for the worse. Mitsubishi Motors says they have enough money to cover the scandal and will not seek help from Mitsubishi group companies. Why would Nissan want a controlling stake in Mitsubishi? A couple of reasons. One, Mitsubishi vehicles are very popular in markets such as Thailand and Indonesia. In fact, Asia makes 50 percent of the company's group operating profit. There is also talk about the two cooperating on electric vehicles. Both companies will hold board meetings tomorrow to discuss the capital tie-up and how the shares will be distributed. Source: Bloomberg, NHK, Nikkei Asian Review UPDATE: Both Mitsubishi and Nissan confirmed they are in talks this morning in Japan. "Nissan and Mitsubishi are discussing various matters including capital cooperation, but nothing has been decided," according to statements released by both companies. Reuters confirms that the board of both companies will be holding separate meetings today to discuss this issue. Source: Reuters View full article

For better or worse, Fiat Chrysler Automobiles CEO Sergio Marchionne will say whatever comes to his mind. Case in point, saying the next-generation Chrysler 300 could go front-wheel drive. "This plant and this architecture is capable of making the 300 successor, the front-wheel, all-wheel drive successor," Marchionne told reporters at FCA's Windsor plant - home to Pacifica production. The architecture in question what underpins the new Pacifica minivan. Now when asked if the 300 would switch from a rear-wheel to a front-wheel platform, Marchionne said, "It's capable. It's not a commitment." The current Chrysler 300 and its stablemates, the Dodge Charger and Challenger use the LX platform that uses suspension bits from older Mercedes-Benz models - the W211 E-Class and W220 S-Class. This move makes some sense as Chrysler is slowly being positioned as a competitor to the likes of Honda, Chevrolet, and Ford. Plus, it would give Dodge some breathing room to become the performance brand by having a rear-wheel drive platform for themselves. But who can be sure at the moment since plans at FCA seem to be in a constant state of change. Source: Reuters Pic Credit: William Maley for Cheers & Gears View full article

I would rent as well considering the miles you're going to be putting on. Who knows, you might end up with another Maxima.

At last month's court hearing where Volkswagen announced a deal had been reached with the U.S. Government on the 2.0L TDI engine, we learned the two were still in negotiations over the 3.0L TDI V6. Now it seems that issue is coming to a close. Bloomberg has learned from sources that Volkswagen and U.S. Government are ironing out technical details and reviewing test results of a possible software fix for the engine. It is said that a new catalytic converter could be part of this as well. Sources go on to say a that the timing of a final agreement depends on a broader settlement of the diesel emission scandal. The 3.0L TDI is primarily used in a number of Audi products (A6, A7, A8, Q5, and Q7), along with the Porsche Cayenne and Volkswagen Touareg. A court hearing will be held next week to get a status update on the talks. Source: Bloomberg View full article

With the sixth-generation Chevrolet Camaro sitting on dealer lots and the ZL1 being shown at New York, there is something still missing: The mad, track-oriented Camaro Z28. It seems GM is working on that model at the Nurburgring thanks to some new spy shots. This Camaro test mule is wearing some extreme aero parts such as deep canards on the front bumper and a massive rear wing. The pictures also reveal a set of larger brakes and wide rear tires. We're guessing the tires could be a set of Pirelli PZero Trofeo Rs - the same tires the last Camaro Z28 wore. Expect GM to do a major weight loss program for the new Z28 with racing seats, carbon fiber, and no air conditioning. No one has any idea what is lying under the hood of this mule, but we're expecting a V8 of some form. Source: CarScoops, Road & Track View full article

This sounds to good to be true, but a Ford dealer in Ohio is selling 727 horsepower Mustang GT with a Roush Phase 2 Supercharger for $39,995 out the door. How?! Here is what we figured out when doing the math. 2016 Ford Mustang GT: $32,395 (base) Roush Phase 2 Supercharger: $7,549.99 Total: $39,944.99* *Doesn't include labor to install the supercharger Now if we had a possible guess as to the labor cost, we could be looking at a price tag above $40,000. The Drive decided to investigate this to see if this was smoke and mirrors. Speaking with Charlie Watson, the Roush Parts Manager for Lebanon Ford explained this is for real. The reason the dealer is charging so low is because they want "to focus on establishing a nationwide base of enthusiasts rather than making huge profits on each car." To pull off this price, Lebanon Ford is offering the Mustang GT and Supercharger at their MSRP, and squeezing the price of labor. Watson says they are able to make a little bit of profit. But most of the buyers are spending a bit more, with many of the vehicles going for $45,000 to $50,000. If a buyer has some ideas of making their 727 horsepower Mustang even more special, the dealer can do it. Examples include swapping exterior parts or installing larger brakes (something we would highly recommend). What is the inspiration for this? Watson explained that the likes of the Dodge Challenger Hellcat and Ford Shelby GT350R are quite the bargain when you take into account the performance on offer. But with prices ranging from $60,000 plus, they are still out of reach. Source: The Drive View full article

Don't know.

Yes, a new eight-speed automatic. It is badly needed. I drove the Wrangler seen in the picture and got 16.7 MPG for the week. I wonder how much the eight-speed would have improved it.

All that is anyone is certain is that the Wrangler will have a revised Pentastar V6. I don't know if it's going to be the 3.2 or 3.6L.

Last month, Fiat Chrysler Automobiles announced a $75 million investment into their Trenton Engine Complex to build a new four-cylinder engine. Automotive News has learned some details about this new engine and where it could end up. According to a source, the new four-cylinder is codenamed Hurricane and it will be a turbocharged 2.0L. The engine will feature direct-injection and a twin-scroll turbocharger. Hurricane is expected to produce almost 300 horsepower. This seems like a perfect engine to drop into a hot version of a compact model, but Automotive News says this engine will likely appear in the next-generation Wrangler. FCA CEO Sergio Marchionne has hinted the Wrangler would have the option of a four-cylinder paired with a new eight-speed automatic. This would likely improve the current Wrangler's fuel economy of 17 City/21 Highway with the current 3.6L V6 and five-speed automatic. Source: Automotive News (Subscription Required) Pic Credit: William Maley for Cheers & Gears View full article

I'll direct you this comment It isn't I don't like giving advice, but it seems most people have their made up. Basically, I try to guide the process along with said vehicle along with a few other choices. I'm willing to help out someone, but I can't be sure if it's because they need justification or actual help.

Tetsuya Tada, the man behind the Toyota 86 coupe (and sister models Subaru BRZ and Scion FR-S) has some dreams that he would like the Japanese brand to take on. One thing Tada-san is adamant Toyota should do is launch a dedicated high-performance brand. “BMW has its M Division, Mercedes-Benz has Mercedes-AMG, Audi has quattro GmbH, so they have a stance of a sports car, but Toyota hasn’t,” Tada-san told CarAdvice. “So I would like to build that major sports car brand within Toyota, like BMW’s M.” The closest thing Toyota has at the moment is their TRD (Toyota Racing Development) arm. But Tada points to Gazgoo Racing - the group behind the racing efforts of the Lexus LF-A and Toyota 86 - as a possibility to reach this goal. “BMW and M and Audi and quattro GmbH used to be like the Toyota relationship with Gazoo – it wasn’t really one body, it was two separate things. But because of the time and the continuous effort, now they are together. So, I’m wishing that Toyota puts effort continuously, and then someday later, Toyota and Gazoo will be one body. The important thing is to keep putting in the effort and continue – never give up,” said Tada-san. Tada-san is also working on encouraging Toyota to build more vehicles with passion - see the upcoming Lexus LC 500 as an example. He is very much aware of the ‘opportunity’ to build a flagship sports car - the rumored Supra. “We’re putting all the effort into making it happen. There is so much gossip about it may be happening or it may be produced, but amongst Toyota Motor Corporation (TMC), much of the things people think, have already been tried. But trying [‘things’] and trying to reach production, are two different things. So, of the ideas from our team, maybe one tenth is the production car.” Toyota and BMW currently have a partnership of developing various things, including a sports car platform. Rumor has it that next-generation BMW Z4 will share its platform with the Supra. Finally, Tada-san revealed what he would like to do as a dream project. “I would prefer a new Celica GT4 – turbo, four-wheel drive. [it’s a] really fun car and really fast. And [it was fast on] every type of road. [A new one is definitely] one of my dreams.” Source: CarAdvice View full article