Tuesday 15 June. The Green Piece Column.
The highly competitive world of car manufacturing isn’t exactly the environment in which you’d expect relationships to be formed. However, since car making has gone green it seems manufacturers are lining up to be each other’s BFF.
Last week, Swedish manufacturer Saab declared its intention to find a ‘partner’ to help develop a new premium small car (see article) expected to be a throwback to the original Saab 92 launched in 1949. Ford too has indicated that it would be open to considering green car partnerships (see article). However, while Saab and Ford may have only just posted their lonely hearts ads, there are a host of manufacturers that have already declared their love for one another with green cars being the aphrodisiac that’s igniting these new romances.
Here we take a look at the industry’s hottest couples…
When Renault met Nissan…
Partners since 1999, French manufacturer Renault and Japanese carmaker Nissan have motoring’s greenest relationship – Renault has a 44.4 per cent stake in Nissan, while Nissan owns a 15 per cent stake in Renault.
Together they have been signing deals with municipalities, governments and utilities around the world to introduce their electric cars into key locations while also supporting the building of recharging infrastructure in these zones. It began with a deal with Project Better Place to mass market electric vehicles in Israel and has since expanded to include emission free agreements in areas such as the US states of Oregon and Tennessee; areas of California; Orlando in Florida (see article); the State Government of New South Wales in Australia (see article); Yokohama in Japan; Wuhan in China (see article); Portugal; the Principality of Monaco; Lombardy in Italy (see article); and Milton Keynes in the UK (see article). The companies are even working together in a bid to take over South Korean auto maker Ssangyong Motor Company to feed strong demand in the developing markets of South East Asia (see article).
A love triangle: Renault, Nissan and Daimler
It’s fair to say that Renault-Nissan is the green car industry’s power couple but they clearly have an open relationship as indicated by their decision to form a bond with German car giant Daimler (see article).
Daimler took a 3.1 per cent stake in both Renault and Nissan earlier this year, with the Alliance returning the favour. Now they will work together to increase the development and production of electric cars with Renault-Nissan engines expected to be used in the electric drive Smart cars. We have more on this partnership in a previous Green Piece column.
Another threesome: Mitsubishi, Peugeot and Citroen
PSA Peugeot Citroen is the second largest car manufacturer in Europe and its union dates back to 1974 when Peugeot acquired a 38.2 per cent stake in fellow French car maker Citroen – a union that was expanded in May 1976 when Peugeot took an 89.95 per cent stake in the then bankrupt company.
Now PSA has looked to Japan for electric car inspiration and has forged an agreement with Mitsubishi which will see the i-MiEV electric vehicle sold in Europe under the Peugeot and Citroen brands – as the Peugeot i0n (see article) and Citroen C-ZERO. The vehicle will be available in the UK from the end of the year and offers an 80mile range and a top speed of 81mph.
Their partnership does not end there, however, with reports now suggesting that the companies will work together again with Mitsubishi to supply a small internal combustion engine for Peugeot and Citroen cars with a 1.0-1.3litre displacement (see article).
The hot new couple: Toyota and Tesla
The undisputed hybrid car leader is to team up with the electric car market’s hottest newcomer as Toyota and Tesla Motors join forces prompted by Toyota purchasing $50million of Tesla common stock (see article).
A deal with Toyota is expected to fast track the Tesla Model S into production after the company hit financial difficulties last year – the vehicle will have a range of 200miles and can race from 0-60mph in just 5.6seconds. Meanwhile, Tesla is expected to play a key role in the introduction of a Toyota electric car, now rumoured to be unveiled before the end of the year based on an existing Toyota model. The partnership represents a significant shift in direction for Toyota, a company that has previously focused its mid-term strategy almost exclusively on hybrid cars. There is even talk that Toyota may team up with Daimler to accelerate the production of fuel cell vehicles too (see article).
Our verdict
The rush for love in the car industry is no coincidence and many of these partnerships will be looked back on as marriages of convenience.
With the industry still reeling from the credit crunch it makes sense for car makers to pool their resources; and with a new age of electric cars on the horizon, sharing knowledge, skills and expertise will assist the manufacturers in their efforts to hit emission targets and be well positioned for a surge in demand for electrification.
Whether these relationships end up being more “Cheryl and Ashley” than “Posh and Becks” remains to be seen – but if they bring more green cars to consumers at a faster rate then we’re happy to let sparks fly.
Faye Sunderland
