At least that’s the findings from Evalueserve’s White Paper, entitled “Platform Strategy Will Shape  the Future of OEMs.” Like many facets of  the auto industry, the concept of platform sharing is nothing new, automakers have been doing it for decades.

Yet, the realities of doing business in the 21st century mean that not only is it no longer acceptable for automakers to offer a range of badge engineered models (think back to GM’s J-cars of the 1980s), it simply isn’t financially feasible to have a range of unique, dedicated platforms either.

According to Evalueserve’s own analysis, last year, the top 20 global passenger car platforms accounted for some 40 percent of global sales, with realistic projections set to see these top 20 account for almost 50 percent of all global vehicle sales by 2015.

Yet as we move forward and automakers seek to maintain economies of scale, the number of vehicle architectures is expected to shrink still further, even as many brands aim to proliferate their model offerings as well as adding localized production, all in an effort to make their products appeal to a wider range of consumers in different global markets, while minimizing supply and tariff issues.

Evalueserve estimates that by 2020, the  major vehicle manufacturers; Daimler AG, Fiat/Chrysler, Ford, General Motors, Honda, PSA Peugeot/Citroen, Renault/Nissan, Toyota and Volkswagen Group will have reduced the total number of vehicle architectures they use by a third.

In fact, not too long ago, GM declared that by 2018, it will have reduced its number of global vehicle architectures to just 14, down from 30 in 2010. The company also said this strategy should help it save some $1 billion each year, money that’s primarily contributed by product development programs.

As with all new products, analysts are quick to analyze its success after its first year of sales. When Nissan reported that its Leaf electric vehicle sales tallied 9,674 units last year, industry analysts claimed that the poor sales number proved that a market does not exist for electric propulsion.

CEO Carlos Ghosn saw differently, and explained, “The only reason we couldn’t sell more is because we couldn’t build more. We’re expecting in 2012 to double that number.”

Furthermore, the initial release of the Leaf was small and only seven initial launch markets were available for early adopters in 2011. For 2012, availability of the Nissan Leaf will expand to all 50 states. Ghosn added that he believed there are, “pent-up demand for electric cars which is today not being recognized.”

Confident of the future of alternative energy, Renault-Nissan have planned to boost annual production capacity of electric vehicles to 400,000 units by 2015. A significant portion of said cars will be assembled in the Smyrna, Tennessee, plant.

Finally, Ghosn expressed optimism for 2012 overall, noting that Nissan has prepared the launch of several important products, starting with the Pathfinder at the Detroit Auto Show as well as updates for the Sentra and Altima sedans. Quite boldly, Ghosn claimed, “We think the next Altima will be a strong contender competing for the number-one spot.”

Renault-Nissan’s joint venture with Mercedes-Benz looks to be a mutually beneficial alliance as well. Nissan’s Tennessee plant will be responsible for building the German 4-cylinder engines, which will find its way underneath both Mercedes-Benz and Infiniti products starting 2014.

GALLERY: Nissan Leaf

[Source: The Detroit Bureau]

Renault-Nissan and Daimler have announced the joint engine production of Mercedes-Benz 4-cylinder engines at Nissan’s Decherd, Tennessee, plant beginning 2014.

According to the press release, this marks the first ever production of a Mercedes-Benz engine within the North America Free Trade region.

Dr. Dieter Zetsche, Chairman of the Daimler Board of Management and Head of Mercedes-Benz Cars, said, “In the context of our Mercedes-Benz 2020 growth strategy, we have decided that we will expand the production capacities required for this close to the customers. Through the strategic extension of our cooperation with Renault-Nissan, we can realize near-market engine production in the NAFTA region on attractive economic terms and make optimum use of synergies arising from cooperation. Thus, we are systematically broadening our manufacturing footprint in this important growth market.”

Renault-Nissan CEO Carlos Ghosn adds, “This is the newest milestone on our pragmatic collaboration and our most significant project outside of Europe so far. Localized capacity reduces exposure to foreign exchange rates while rapidly enabling a good business development in North America– a win-win for the Alliance and Daimler.”

Nissan  first began to assemble engines in Decherd, Tennessee, in 1997. Currently manufacturing 4-, 6-, and 8-cylinder engines for the North American produced Nissan and Infiniti products, Decherd has produced more than 580,000 engines in 2011. Production capacity of the Mercedes-Benz 4-cylinder could potentially reach 250,000 engine units per year once full ramp-up is achieved.

Renault is looking to take a step back in order to take two steps forward, looking to discontinue at least five models from their UK lineup in February. At the top of the list of vehicles getting killed off are the Laguna hatchback, Sport Tourer and Coupe, along with the Espace and Grand Espace, Modus and Grand Modus, Wind Roadster and Kangoo.

Those models make up almost 10-percent of Renault’s total sales in the United Kingdom. No direct replacements will be coming for the discontinued Modus, Laguna or Espace models, but Renault is working on new crossovers of all sizes to take their place. A supermini-SUV will debut in 2013 to go along with their Clio model, while the larger crossovers will debut in 2014.

Renault is well aware that the cuts will result in a drop in total sales figures for 2012, but looks forward to a subsequent rise in 2013. Renault will also be reducing its dealer network from 190 to 135 by the start of 2013. On the other hand, Renault’s Twingo, Clio and Megane hot hatches – sold as RS and Gordini badged variants – will be saved from the axe. The UK represents the single largest market for those vehicles, and the most exciting Renaults have solidified their place in the lineup if anything.

[Source: AutoExpress]

Robert Kubica, one of Formula One’s most promising young drivers, will sit out the start of the 2012 F1 season as he continues to recover from a crash that partially severed his arm.

While Kubica is making a recovery, the pace is not as rapid as some had hoped for. Kubica can move his arm, but it remains unknown whether he is physically fit enough to drive a Formula One car at this time.

Kubica was driving a Skoda rally car in an Italian race when he crashed into a barrier that penetrated his car and nearly sliced off his arm. Kubica was replaced before the start of the 2011 season by Nick Heidfeld and Bruno Senna. Renault will have to look for a replacement for 2012, but says that Kubica has a test car and a crew of mechanics at his disposal when he is ready to return.

Hit the jump to see the official press release

Continue Reading…

Renault is in development of an ultra low-cost vehicle, along the lines of the Tata Nano. While the Nano is currently suffering from some awful sales numbers (initial projection of 20,000 a month but only saw 1,200 units sold in September), CEO of Renault/Nissan Carlos Ghosn is convinced that an extremely affordable vehicle would be a good segment for Renault to venture into when approaching emerging markets.

According to reports from La Tribune, Gérard Detourbet, the head of Renault’s low-cost division, will be responsible in developing an engine and platform for a vehicle next year that will have a starting price of 2,500€ ($3,300). While Renault is already offering multiple low-cost vehicles in Brazil, it is possible that the new car will not wear a Renault badge, but the badge of sub-brand Dacia (seen above) instead.

[Source: Left Lane News]

Mercedes-Benz is rethinking their line of Smart cars and will bring the ForFour, a four door, four passenger vehicle, to American consumers by 2015.

That choice, among others, came after Mercedes-Benz took over distribution of the brand in the U.S. last July. They also plan to scrap the current FourTwo (above) in favor of a new model developed in partnership with Renault, which will share the platform with their Twingo, though the new version won’t be available until 2014.

The 2012 FourTwo Electric will also get an improved interior and new lithium ion batteries from Deutsche Accumotive GmbH, a joint venture between Daimler and Evonik Industries.

[Source: Automotive News]

Nissan CEO Carlos Ghosn said that the Japanese government’s effort to keep the yen’s value under control had failed and that Nissan was strongly considering moving production out of Japan and into foreign countries.

A weakened United States dollar has meant that the value of the greenback has shifted from 91 yen per dollar to 76 yen per dollar over the past two years. This unfavorable exchange range has led Nissan to examine other countries for vehicle production. ”We have to make investment decisions all the time,” Ghosn told Reuters. “This is one of the factors that we have to consider when we look at a project and say are we going to do it in Japan or are we going to do it in another country?”

Despite this, Ghosn said that he felt vehicle sales would rise in 2012 even in the face of another possible economic downturn. Ghosn also announced a new electric vehicle to be built in China for the Chinese market.

[Source: CNBC]

It’s that time of the year again as Car of the Year begins the laborious task of whittling down new Car of the Year contenders for 2012.

A total of 59 journalists, representing automotive authorities across 23 European countries, have been recruited for the task of choosing top car. The number of journalists to represent each country is based on the relative size of the said country’s car market. Countries like Spain, Germany, Italy, and Great Britain have a well established market, and each will be represented by six journalists.

As for cars, only completely redesigned new models that have launched within the twelve months before the contest are counted. Each car must be available in at least five European countries and must have an expected sales volume no less than 5,000.

Categories considered include design, safety, performance, and price. This year, says the judging committee, technical innovation and value will be especially influential. What also makes Car of the Year unique is the absence of separate genres for its candidates. Rather than selecting the best of the compacts or the best trucks, vehicles with all sorts of engine size and body types will be vying for the same allotment of points.

Comparison testing of the vehicles will be performed in Sweden.

The following 35 candidates selected for the 2012 Car of the Year award include:

Continue Reading…

When it comes to bizarre concept cars, the Tokyo Auto Show might be the traditional winner, but when it comes to production time, often things end up looking like a Camry. Not so for those baguette-loving Frenchmen (and women). From Citroen, to Renault, to Peugeot, their production cars are plenty strange and the concepts that inspire them look straight out of science fiction.

Just back from the Frankfurt Auto Show, we’ve assembled a gallery of snap shots of some of the strange and very strange production and concept cars on display by French automakers there. Enjoy the originality, scratch your head or just have a good chuckle at the pictures below.

GALLERY: French Cars of the 2011 Frankfurt Auto Show