French carmaker Renault SA has again made a formal offer to merge with Nisan Motor Co, under a holding company structure, Japanese broadcaster TBS reported on Monday, citing a source close to the matter.
Nissan rejected the proposal made in mid-April, the source said late Monday, adding that French government, Renault’s biggest shareholder, made a similar offer in January after the alliance was rocked by the arrest of Ghosn in November.
The rejection could jeopardize the recent momentum for improving ties between the two companies.
Renault, Nissan’s largest shareholder, is seeking to further solidify its partnership with the Japanese company, which contributes about half of the French automaker’s net profit.
But some Nissan executives view the partnership balance as unfair as Nissan has been seeking an equal capital relationship with Renault.
Renault holds a 43.4 percent stake in Nissan, which has a 15 percent stake in the French firm without voting rights. Nissan sold 5.65 million vehicles worldwide last year, 1.5 times more than Renault.
Talks have been ongoing since Renault Chairman Jean-Dominique Senard first made an informal proposal to Nissan Chief Executive Officer Hiroto Saikawa in April, the source said, speaking on condition of anonymity because the discussions aren’t public. Nissan rebuffed the idea then and has continued to oppose it, the person said.
News of the talks comes as Nissan is set to report on Tuesday its lowest annual operating profit in a decade, hurt by slumping U.S. sales, aging models and a product cycle that’s out of sync. The merger proposal came after the most tumultuous few months in the companies’ two-decade partnership, which was shaken by the shock arrest of the alliance’s chief architect and former chairman, Carlos Ghosn.
Nissan declined to comment on the discussions. Representatives for Renault didn’t immediately respond to requests for comment.
CO2 emission rules will increase car prices in January
With new emission rules kicking in, tough fines for automobile companies found in violation of new rules aimed at reducing CO2 emissions will increase the cost of passenger cars.
Automakers could be hit with billions of euros in fines for missing the European Union’s fleet CO2 emissions reduction target that starts to take effect next year.
The fine is 95 euros per gram of CO2 over the limit, multiplied by the number of cars sold in 2020 and 2021, although 5 percent of the highest-emissions vehicles will not be counted in 2020. The fleet CO2 target is 95 grams per kilometer.
Cars are responsible for around 12% of total EU emissions of carbon dioxide (CO2), the main greenhouse gas. Since 2009, EU legislation sets mandatory emission targets for new cars. The first targets apply since 2015. Stricter targets will apply from 2021 on, with a phase-in from 2020.
On 17 April 2019, the European Parliament and the Council adopted Regulation (EU) setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles (vans) in the EU for the period after 2020. The new Regulation will start applying on 1 January 2020.
From 2021, phased in from 2020, the EU fleet-wide average emission target for new cars will be 95 g CO2/km. This emission level corresponds to a fuel consumption of around 4.1 l/100 km of petrol or 3.6 l/100 km of diesel
Of the average CO2 emissions of a manufacturer’s fleet exceed its target in a given year, the manufacturer has to pay an excess emissions premium for each car registered. Manufacturers selling cars in Europe will have to pay a fine amounting 95 euro per gram of Co2 over the limit.
These fines will force manufacturers selling cars in Europe to hike the price of new cars as dealers will not be able to recover the fine by themselves.
Analysts estimate the fines, amounting EUR 20-35 billion, will apply on sold cars not the manufactured ones.
Germany plans to double taxes on short-haul flights
Berlin plans to nearly double taxes on short-haul flights under Germany’s emissions cutting programme, an official at the Finance Ministry said on Tuesday.
The bigger than expected tax hikes form part of a climate package in Germany aimed making the country carbon neutral by the year 2050 and are accompanied by measures to promote public transport use.
Climate activists and industry groups had criticized the plans as not going far enough to achieve Germany’s 2050 emissions goal.
The tax on domestic and intra-European flights is likely to rise to 13.03 euros from 7.50 euros, while for medium-haul flights it would rise to 33.01 euros from 23.43 and for long-haul flights to 59.43 from 42.18 euros.
Government approves financial aid for 170 companies through economic growth plan
The government endorsed a report on conclusion of contracts awarding financial assistance to 170 companies, including companies from commercial-industrial zones and one from the diaspora, through programs set out in the Economic Development Plan.
Prior to awarding financial assistance, the authorities assessed the investments in 2018 in terms of investments in purchase of new machinery and equipment, and investments in facilities and land.
The financial aid, provided through the Agency for Foreign Investments and Export Promotion, has been granted for completed initial or additional investments. The funds for this purpose are foreseen in the 2019 Budget.
The total value of investments in these 170 companies amounts EUR230 million, adding 4.577 jobs to the labor market, of which, 2.117 jobs were registered in 2018.
- World2 months ago
IWPG’s Relentless Pursuit of Global Peace Offers New Hope
- Region2 weeks ago
Kurti: Albanians’ national unification cannot happen in EU
- World1 month ago
Space Force Formal Launch Pegged Back Due to Cost
- Region4 weeks ago
Greece hit by general strike called by public sector union
- Region3 months ago
Slovenian diplomat tipped for next EU enlargement chief
- Region1 month ago
30 countries team up to combat crime in Western Balkans
- Macedonia2 weeks ago
Formal charges filed in Racket case, Janeva took EUR50.000 in kickbacks
- World1 month ago
Alien Enthusiasts Arrive for ‘Storm Area 51’ Despite Warnings