Renault and Nissan automobile logos are pictured during the Brussels Motor Show on January 9, 2020 in Brussels. (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)
Kenzo Tribouillard | Afp | Getty Images
Automobile giants Renault and Nissan on Monday agreed to restructure their decades-long alliance, in a move that would see Renault’s shareholdings in Nissan reduced from around 43% to 15%.
The deal, which still pends board approvals, would equalize the companies’ cross-shareholdings, with the carmakers now able to “freely exercise the voting rights attached to their 15% direct shareholdings, with a 15% cap,” the companies said.
The new structure would also see Renault transfer 28.4% of Nissan shares into a French trust.
Voting rights in the trust would be “‘neutralized’ for most of the decisions, but the economic rights (dividends and shares’ sale proceeds) would still entirely benefit to Renault until such shares are sold,” according to the Monday announcement.
Renault would instruct the trustee to sell those shares if “commercially reasonable” and as part of a “coordinated and orderly process.”
The carmakers first signed their coalition in March 1999, expanding it to include junior partner Mitsubishi Motors in 2016. The Monday deal comes after months of intense discussions over the restructure of the Franco-Japanese alliance.
As part of the agreement, Nissan would also invest in Ampere, Renault’s electric vehicle arm, while the two companies will embark on “high-value-creation operational projects” in Latin America, India and Europe.
Renault announced in November that it had signed a non-binding framework agreement with China’s Geely to establish a new company producing hybrid powertrains and “highly efficient ICE [internal combustion engine] powertrains.”
The French giant has also entered into a long-term strategic cooperation with U.S. chipmaker Qualcomm.
Renault shares dropped 1.4% in early trade in Europe, while Nissan shares were down by around 0.7% during Asian trading hours overnight.
Renault sees the internal combustion engine continuing to play a crucial role in its business over the coming years, according to a top executive at the French automotive giant.
On Tuesday, it was announced that the Renault Group and Chinese firm Geely had signed a non-binding framework agreement to establish a company focused on the development, production and supply of “hybrid powertrains and highly efficient ICE [internal combustion engine] powertrains.”
According to Renault, both itself and Geely will have a 50% stake in the business, which will consist of 17 powertrain facilities and five research and development centers.
Speaking to CNBC’s Charlotte Reed on Tuesday, Renault Chief Financial Officer Thierry Pieton sought to explain some of the reasoning behind the planned partnership with Geely.
“In our view, and according to all the studies that we’ve got, there is no scenario where ICE and hybrid engines represent less than 40% of the market with a horizon of 2040,” he said. “So it’s actually … a market that’s going to continue to grow.”
Read more about electric vehicles from CNBC Pro
The tie-up with Geely comes as Renault fleshes out plans to establish an EV spin-off called Ampere.
According to Renault, France-based Ampere “will develop, manufacture, and sell full EV passenger cars.” It’s eyeing an initial public offering on the Euronext Paris, which would take place in the second half of 2023 at the earliest, subject to market conditions.
During his interview with CNBC, Pieton touched upon the need, as he saw it, for different types of vehicles. “It’s very important to have, at the same time, the development of our electric vehicle business on one side — with Ampere — and to build a sustainable source of ICE and hybrid powertrains.”
This was why Renault was going into a partnership with Geely, he added, explaining the move represented “an absolute slam dunk” from a business and financial perspective.
This was because, Pieton argued, it created “a world-leading supplier of ICE and hybrid powertrains with around 19,000 employees in the world, covering 130 countries.”
Read more about energy from CNBC Pro
In comments sent to CNBC via email, David Leggett, an analyst at GlobalData, noted that automotive manufacturers could still enjoy profits from the sale of vehicles that used internal combustion engines.
“Margins are generally higher than on electric vehicles, which are relatively costly to manufacture,” he said.
“The gap will eventually narrow as EV volumes rise sharply and unit costs on major EV components fall significantly, but there is still much profitable business to be done on ICEs and hybrids and will be for some time to come,” he added.
“Manufacturers need to be flexible in their powertrain offerings according to market needs — which differ across the world.”
Renault’s continued focus on the internal combustion engine comes at a time when some big economies are looking to move away from vehicles that use fossil fuels.
The U.K., for example, wants to stop the sale of new diesel and gasoline cars and vans by 2030. It will require, from 2035, all new cars and vans to have zero tailpipe emissions.
The European Union, which the U.K. left on Jan. 31, 2020, is pursuing similar targets. Over in the United States, California is banning the sale of new gasoline-powered vehicles starting in 2035.
Such targets have become a major talking point within the automotive industry.
During a recent interview with CNBC, the CEO of Stellantis was asked about the EU’s plans to phase out the sale of new ICE cars and vans by 2035.
In response, Carlos Tavares said it was “clear that the decision to ban pure ICEs is a purely dogmatic decision.”
Expanding on his point, the Stellantis chief said he would recommend that Europe’s political leaders “be more pragmatic and less dogmatic.”
“I think there is the possibility — and the need — for a more pragmatic approach to manage the transition.”
Toyota says it still isn’t going to really boost production of its first mass-market electric vehicle for a few more years, Faraday Future is slashing salaries because the start-up EV maker is running out of cash, and Mercedes-Benz is the latest manufacturer to quit the Russian market. All that and more in The Morning Shift for Wednesday, October 26, 2022.
1st Gear: Toyota Needs Time to Boost bZ4x Production
Toyota is reportedly considering a huge jump in bZ4X production, but not before 2025. It’s said to be part of a broader strategy rethink from the Japanese company.
The automaker is mulling over the decision to increase production of its first mass-market EV by either six or 12 times its current monthly output. Right now that stands at about 1,000 cars per month. But, this isn’t happening overnight. The move would happen in 2025 if components (including semiconductors) can be secured in time. From Reuters:
The car is produced at Toyota Motor Corp’s Motomachi plant near its headquarters on a shared assembly line with gasoline cars and hybrids. Both the current and potential production numbers include those of the Subaru Corp Solterra, which is made on the same platform.
The increase would see Toyota add production at another plant near its headquarters, the Takaoka factory, said the three people, who spoke on condition of anonymity because the information was not public.
[…]
The potential ramp-up in production comes as the automaker has faced criticism for not moving faster to embrace all-electric cars and pushing hybrid technology instead. It has launched a review of its EV strategy, Reuters reported this week.
As part of that review – which could result in a more aggressive roadmap for future electric vehicles based on technologies that promise to lower cost and improve performance – it has also suspended development work on some of the 30 new EV models it announced last year and planned to launch by 2030, Reuters reported.
G/O Media may get a commission
Toyota recently restarted bZ4X production after a couple of recalls hampered it. At the peak of the planned production increase, Toyota would be producing over 190,000 EVs per years.
2nd Gear: Faraday’s Bleak Future
Faraday Future is reportedly slashing employee salaries by 25 percent starting next month. The move is being done in an effort to save some cash (since it is nearly out) while the company looks for new capital in order to finally launch the FF91.
In an email sent to employees last week, Faraday said the salary cuts expect to last from November 1st through the end of the year. Earlier this month, the company also laid off a few dozen employees. From Bloomberg:
Faraday has seen its cash reserves dwindle rapidly. It recently reported having $39 million in cash as of Sept. 21, down from around $47 million at the end of August.
The company said in the emailed memo, which was viewed by Bloomberg News, that employees will be granted restricted stock units, or RSUs, equivalent to the amount being cut from their salary and which will vest in December. Faraday also offered employees the option of taking a larger salary cut in exchange for more valuable RSUs, though it noted that any RSUs granted will be forfeited if the employee is terminated.
Faraday delayed the launch of its first vehicle until at least 2023. Things are not looking too hot for the Los Angeles-based company right now, though they never really have been.
3rd Gear: Mercedes-Benz Leaves Russia
Add Mercedes-Benz to a growing list of automakers who are pulling out of the Russian market. The company is reportedly selling shares in its industrial and financial service subsidiaries to a Russian investor: car dealer chain Avtodom. From Reuters:
Mercedes Chief Financial Officer Harald Wilhelm, while presenting third-quarter results, said the transaction was not expected to give rise to any further significant effects when it comes to the group’s profitability and financial position beyond those reported in previous quarters.
“Final completion of the transaction is subject to the authority’s approval and the implementation of contractually agreed conditions,” he added.
[…]
“The main priorities in agreeing to the terms of the transaction were to maximize the fulfillment of obligations to clients from Russia both in terms of after-sales services and financial services, as well as preserving jobs of employees at the Russian divisions of the company,” Natalia Koroleva, CEO of Mercedes-Benz Russia, said in a statement.
Mercedes suspended manufacturing in Russia in early March.
Mercedes now joins Volkswagen, Toyota, Nissan and Renault in leaving the Russian market. Other companies like Mazda and Kia are also considering moves out of the country.
4th Gear: $1 Billion for Busses
The U.S. Environmental Protection Agency has announced that it is allocating nearly $1 billion for about 400 school districts around the country to buy zero or low-emission school busses.
The funding will lead to the purchase of 2,463 buses. Over 95 percent of those will be electric, and a “very small number” will be powered by compressed natural gas. Another 100 will be propane-fueled buses. From The Detroit News:
School districts to receive funding were chosen through a lottery system and 99% of the projects are in districts serving low-income, rural or Indigenous students. EPA initially planned to allocate $500 million in the first round of funding, but the agency expanded it to nearly $1 billion after receiving “overwhelming demand” from districts.
Millions of children ride the bus to and from school every day, said EPA Administrator Michael Regan. “It’s a quintessential part of being a kid in America.”
“But we all know that traditional vehicles that rely on internal combustion engines emit toxic pollutants in the air,” he added. Thanks to this funding, “we are forever transforming school bus fleets across the United States.”
Right now in the U.S., over 90 percent of all school buses run on diesel. The outlet reports that the $1 billion allocation is part of a more than $5 billion plan for zero and low-emission school buses though the Infrastructure Investment and Jobs Act. A further $1 billion will be available next year.
School districts that applied and received funding will put in purchase orders with manufacturers, which will be paid directly by EPA, [Karl] Simon [director of the transportation and climate division of the EPA] said. That must be finished by April.
5th Gear: Hyundai’s EV Expansion Starts in Georgia
Hyundai broke ground Tuesday on its $5.54 billion electric vehicle and battery manufacturing project that will build vehicles for Hyundai, Kia, and Genesis.
The factory — called the Metaplant — is set to build up to six different models and has the capacity to produce as many as 500,000 vehicles per year on its 2,800-acres of land located about 30 miles northwest of Savannah, Georgia. From Automotive News:
“We are making the current investment to get to 300,000 vehicles in phase one, and then 500,000,” Munoz said at a media roundtable after the groundbreaking ceremony.
[…]
Munoz did not say which models the Metaplant will produce, but a new three-row Hyundai EV crossover called the Ioniq 7 is expected to be the first. Munoz also said Hyundai is still examining what models it will export from the new plant.
The project also will see the construction of an adjacent battery plant that will be built through a joint venture with a battery supplier that Hyundai has not identified yet.
A new supply chain also will be established to support the EV factory, Munoz said.
Because of this move, Hyundai should be back in a position to for its buyers to get federal EV tax credits under President Biden’s Inflation Reduction Act.
Right now, Hyundai/Kia/Genesis EVs aren’t eligible for the credit because they are imported from Korea, and that doesn’t jive with the criteria laid out in the IRA.
Reverse: Bad!
Neutral: Good!
Ok I Love You
Did you guys know Jackie Chan sings? Me neither. Awesome.
Oct 8 (Reuters) – Nissan Motor Co Ltd (7201.T) is pressing French partner Renault SA (RENA.PA) to cut its stake in the Japanese automaker as much as possible, ideally to 15%, and may consider raising funds to buy back the shares, a source familiar with the matter said.
The demands were made in exchange for Nissan agreeing to invest in Renault’s new unit being set up to house its electric vehicle (EV) assets, said the source, who sought anonymity as the talks are not public.
Renault owns about 43% of Nissan, which wants its French ally to wind down the stake to 15%, drawing level with Nissan’s share in the alliance partner, the source said.
Register now for FREE unlimited access to Reuters.com
The stake sale would not affect their business alliance and Nissan may need to raise funds to buy the shares back from Renault, the source added.
A Nissan spokesperson declined to comment. Renault did not immediately reply to Reuters’ requests for comment.
The stake selldown talks were first reported by the Wall Street Journal and news agency Bloomberg said Renault was open to reducing its stake in Nissan, citing people familiar with the talks.
Renault is pushing ahead with plans to split its EV and combustion engine businesses in a bid to catch up with rivals such as Tesla (TSLA.O) and Volkswagen (VOWG_p.DE) in the race to cleaner driving.
It expects to unveil a detailed blueprint for the new EV entity at a capital markets day this autumn.
As the negotiations intensify, Renault’s Chief Executive Luca de Meo is set to attend Sunday’s Formula 1 race in Suzuka, giving him an opportunity to speak with his Nissan counterpart, Makoto Uchida, another source said.
This weekend’s talks are unlikely to yield concrete results, the first source said, but negotiations could bring a deal before Nov. 8, when de Meo plans to present an update of his strategy.
Alliance partners Nissan and Mitsubishi (7211.T) have not yet said whether they will take part in Renault’s future EV unit.
The source said Mitsubishi was also considering taking a single-digit percent stake in Renault’s EV unit.
Register now for FREE unlimited access to Reuters.com
Reporting by Maki Shiraki and Satoshi Sugiyama in Tokyo, Akanksha Khushi in Bengaluru; Additional reporting by Gilles Guillaume in Paris; Editing by Clarence Fernandez and Ana Nicolaci da Costa
Our Standards: The Thomson Reuters Trust Principles.
Details of Renault’s Scénic Vision concept car were presented to the public on May 19, 2022. The firm’s idea of developing a passenger vehicle that uses hydrogen technology is not unique.
Benjamin Girette | Bloomberg | Getty Images
Renault has released details of an electric-hydrogen hybrid concept car, with the French automaker describing hydrogen technology as being “one of the options to make electric vehicles more convenient.”
The design for Renault’s Scenic Vision incorporates a hydrogen engine, electric motor, battery, fuel cell and a hydrogen tank. The 2.5 kilogram tank is located at the vehicle’s front and, Renault said, would take around five minutes to fill.
According to a document published on Thursday that outlined the concept, the Scenic Vision’s 40 kilowatt hour battery is recyclable and will be produced at a facility in France by 2024.
In a statement, Gilles Vidal, who is director of design at Renault, said the concept “prefigures the exterior design of the new Scénic 100% electric model for 2024.” The company said the electric-hydrogen powertrain was “part of a longer-term vision, beyond 2030.”
The broad idea is that the Scenic Vision’s hydrogen fuel cell would help extend the vehicle’s range during longer trips. “In 2030 and beyond, once the network of hydrogen stations is large enough, you will be able to drive up to 800 km [a little over 497 miles] … without stopping to charge the battery,” Renault said.
Read more about electric vehicles from CNBC Pro
Described by the International Energy Agency as a “versatile energy carrier,” hydrogen has a diverse range of applications and can be deployed in a wide range of industries.
It can be produced in a number of ways. One method includes using electrolysis, with an electric current splitting water into oxygen and hydrogen.
If the electricity used in this process comes from a renewable source such as wind or solar then some call it green or renewable hydrogen.
It’s envisaged that Renault’s hybrid would use green hydrogen, although the vast majority of hydrogen generation is currently based on fossil fuels.
Renault’s electric-hydrogen concept illustrates how car companies are looking to find ways to develop low and zero emission offerings that can compete with the range of gasoline and diesel vehicles.
“Several systems to complement electric motors are being explored today to address the requirements associated with long-distance driving,” Renault said. “Hydrogen technology is one of the options to make electric vehicles more convenient.”
In the field of hydrogen mobility, the Renault Group has already set up a joint venture with Plug Power called Hyvia. Among other things, it is focused on hydrogen fuel cells in light commercial vehicles and the rollout of hydrogen charging facilities.
Renault’s idea of developing a passenger vehicle that uses hydrogen technology is not unique.
Toyota, for instance, started working on the development of fuel-cell vehicles — where hydrogen from a tank mixes with oxygen, producing electricity — back in 1992. In 2014, the Japanese business launched the Mirai, a hydrogen fuel cell sedan.
Other major companies like Hyundai and BMW are also looking at hydrogen, as well as smaller concerns such as U.K.-based Riversimple.
While the above companies are looking at the potential of hydrogen, some high-profile figures in the automotive sector are not so sure. In Feb. 2021, Herbert Diess, the CEO of Germany’s Volkswagen Group, weighed in on the subject. “It’s time for politicians to accept science,” he tweeted.
“Green hydrogen is needed for steel, chemical, aero … and should not end up in cars. Far too expensive, inefficient, slow and difficult to roll out and transport. After all: no #hydrogen cars in sight.”
Despite Thursday’s unveiling of the Scenic Vision concept, even Renault CEO Luca de Meo would appear to be cautious when it comes to talking about hydrogen’s prospects, according to comments published by Autocar.
Elsewhere, in Feb. 2020 Brussels-based campaign group Transport and Environment hammered home just how much competition hydrogen would face in the transportation sector.
T&E made the point that green hydrogen wouldn’t only have to “compete with grey and blue hydrogen,” which are produced using fossil fuels. “It will compete with petrol, diesel, marine fuel oil, kerosene and, of course, electricity,” T&E said.
“Wherever batteries are a practical solution — cars; vans; urban, regional and perhaps long-haul trucks; ferries — hydrogen will face an uphill struggle because of its lower efficiency and, as a result, much higher fuel costs.”
Russia has nationalized a major factory that belonged to Renault and intends to use it to revive the famous Soviet-era Moskvitch car in what the French automaker categorized as a “responsible choice” for its thousands of employees in Russia.
The move appears to be the first major transfer of private assets into state hands after Russian officials threatened to nationalize Western businesses exiting over Moscow’s invasion of Ukraine.
“I’ve decided to list the factory as the city’s asset and resume production under the historical brand Moskvitch,” Moscow Mayor Sergei Sobyanin announced.
“We will open a new page in the history of the Moskvitch in 2022,” he added, vowing to keep “most” of the Renault plant’s staff and subcontractors.
An iconic Soviet brand, Moskvitch cars were ubiquitous on the streets of the Soviet Union for decades. The production company was declared bankrupt in 2006, 75 years after rolling out its first model and five years after producing its last vehicle.
In a statement carried by Reuters, Renault described the sale of its majority stake in Avtovaz to NAMI and 100% shares in Renault Russia to the city of Moscow as a “responsible choice.”
“Today, we have taken a difficult but necessary decision, and we are making a responsible choice toward our 45,000 employees in Russia,” CEO Luca de Meo was quoted as saying.
De Meo said the move preserved Renault’s performance and ability to return to Russia in the future under a different context.
Renault confirmed a non-cash writedown of nearly $2.29 billion to reflect the potential costs of suspending operations in Russia.
Renault began car production in Russia as part of a joint venture with the city of Moscow in 2005.
Renault, which had the most exposure to the Russian market among Western carmakers, suspended operations at its Moscow plant in March 2022 over Russia’s invasion of Ukraine.
The French company was also assessing options on its majority stake in Russia’s top carmaker Avtovaz.
Russia’s Industry and Trade Ministry said Renault’s 68% stake in Avtovaz will transfer to the ministry’s automotive institute NAMI, which had taken part in creating a fleet of presidential vehicles.
The ministry said Renault will have the option to buy back its stake in Avtovaz, which will service Renault vehicles in Russia, within the next six years.
It did not indicate whether the same option exists for Renault’s nationalized plant in Moscow.
Regarding its involvement in major Russian car manufacturer AvtoVAZ, owned by Renault, the French carmaker said that it’s “assessing the available options, taking into account the current environment, while acting responsibly towards its 45,000 employees in Russia.”
The company also said it is “already implementing the necessary measures to comply with international sanctions.”
AvtoVAZ’s brand Lada represented nearly 21% of the Russian market in 2021, according to Renault Group’s financial results.
Earlier on Wednesday, Ukrainian President Volodymyr Zelensky called out major French companies, including Renault, by name for continuing their operations in Russia.
“Renault, Auchan, Leroy Merlin and others must stop being the sponsors of Russia’s war machine,” Zelensky said.
Ukrainian Foreign Minister Dmytro Kuleba went further, calling for a global boycott of the carmaker.
“Renault refuses to pull out of Russia. Not that it should surprise anyone when Renault supports a brutal war of aggression in Europe,” Kuleba said in a tweet. “But mistakes must come with a price, especially when repeated. I call on customers and businesses around the globe to boycott Group Renault.”
Renault declined to comment when asked by CNN if the decision to suspend its activities at the Moscow factory is connected to the strong words from Ukrainian leaders.
Renault said in the statement that the value of its consolidated intangible assets, property, plant, equipment, and goodwill in Russia amounted to more than $2.41 billion at the end of 2021.
To launch over 30 battery EVs based on 5 platforms – sources
Targets compact EVs as cheap as gasoline cars by 2025 – sources
Jan 23 (Reuters) – Renault SA (RENA.PA), Nissan Motor Co and Mitsubishi Motors Corp (7211.T) plan to triple their investment to jointly develop electric vehicles (EVs), two people with knowledge of the plan told Reuters.
As established automakers face pressure from new competitors and an expected shift in demand toward EVs, the French-Japanese alliance is seeking to deepen cooperation.
The three are expected to announce on Thursday a plan to invest more than 20 billion euros ($23 billion) over the next five years on EV development, the sources said. By 2030, the alliance is expected to come up with more than 30 new battery EVs underpinned by five common platforms, they said.
Register now for FREE unlimited access to Reuters.com
Register
That is in addition to 10 billion euros the group has already spent on electrification, said the two people with knowledge of the plan.
A Nissan spokesperson declined to “comment on speculation”. Spokespeople for Renault and Mitsubishi did not respond to requests for comment.
The “Alliance to 2030” plan aims to show “intensified cooperation” among the automakers, highlighting a “shared vision on electrification and connected mobility,” one source said. The five common platforms are expected to cover 90% of EVs the companies are expected to develop and launch by 2030, the sources said.
The three-firm alliance has developed and partly deployed four common EV platforms.
One underpins EVs such as Nissan’s upcoming Ariya and Renault’s Megane EV, and another supports affordable no-frills cars by Nissan and its China market partner Dongfeng, as well as for Renault’s Dacia brand. The other two are platforms for micro minis, called “kei cars” in Japan, and light commercial vehicles.
By mid-decade, the alliance aims to deploy a fifth common platform for compact EVs designed by Renault, the sources said.
Nissan has already decided to use this platform, called CMFB-EV, and other standardised components to electrify the Nissan Micra compact car, while Renault is expected to come up with a similar EV car based on the same platform, the sources said. The Micra EV is projected to be released by the mid-2020s.
AFFORDABLE EVs
The logo of the Renault-Nissan-Mitsubishi alliance is seen ahead of a Renault, Nissan and Mitsubishi chiefs’ joint news conference in Yokohama, Japan, March 12, 2019. REUTERS/Kim Kyung-Hoon/File Photo
The automakers hope to make compact EVs as affordable as gasoline-fuelled vehicles of similar size, the sources said.
The automakers are expected to use common batteries and other key components. The alliance plans to jointly invest in capacity to produce in France, Britain, China and Japan a total of 220 gigawatt hours of battery capacity by 2030 under the plan, the sources said.
By standardising and sharing batteries, the alliance expects to halve battery manufacturing costs, they said.
The alliance is also expected to share solid-state lithium-ion battery technology, which Nissan has been developing, they said.
The plan had been for the leaders of Renault, Nissan and Mitsubishi to announce the 2030 plan last autumn at an event in Japan, but the announcement was postponed until this week because of a surge in COVID-19 in Japan, the sources said.
A disagreement between Nissan and Renault over the French firm’s proposals for a full-blown merger – tensions that burst into the open with the arrest of former alliance leader Carlos Ghosn in 2018 – corresponded with stalled efforts to collaborate on technology and vehicle development, people with knowledge of the matter have said.
The three automakers all have their own hybrid technologies with few shared key parts and systems. The limited cooperation in sourcing and development has raised concern within the group about the ability to achieve cost savings, one source said.
It was not immediately clear whether alliance leaders will discuss hybrids as part of their 2030 plan.
Nissan said in November it planned to spend some $18 billion over five years to accelerate vehicle electrification, launching 23 electrified vehicles – including gasoline-electric hybrids – by 2030, including 15 EVs. Half of Nissan’s vehicle mix will be electrified by 2030, including EVs and e-Power hybrids, the company said.
Renault has said its Renault brand will be 100% electric in Europe by 2030, but company officials told Reuters the target does not apply to markets outside Europe and the group’s other brands, such as Dacia.
($1 = 113.6800 yen)
($1 = 0.8818 euros)
Register now for FREE unlimited access to Reuters.com
Register
Reporting By Norihiko Shirouzu in Beijing; Editing by William Mallard and Kevin Krolicki
Our Standards: The Thomson Reuters Trust Principles.
And judging by what’s happening all around us today, it seems like the ’80s are in again, albeit with a 21st-century twist. I don’t know about you, but I’m a big fan of the ’80s. We’ve seen quite a few cool projects being launched recently, and today I stumbled upon another interesting one. This is the second time I’ve been gauging a Renault 5 Turbo this year, with the first one being a rotary-swapped machine that was being auctioned off on Bring a Trailer.
But now, we’re looking at the rebirth of the legend. Many people have wept over the fact that Group-B rallying was banned. But now we’re getting those legendary machines back with updated technology. A German company just recently announced that they’re building an electric hommage to the Audi Quattro. And now Legende Automobiles Los Angeles is launching their take on the Renault 5 Turbo, which they’ve dubbed the Turbo3.
The Turbo3 is more than a restomod. The Renault 5 Turbo was a childhood hero for French car designer Alan Derosier, and he wanted to build something to match the brilliance of companies like Singer, Guntherwerks, and Canepa. As soon as Alan published some teasers of the concept online, several other people wanted in on the whole thing, and a crew was assembled. Their goal was clear: they were going to make the former Group-B icon more desirable than ever before.
They wanted to create a car for people that are as passionate about driving as they are, and you’ll be delighted to hear that this car will come with a third pedal. Packing a turbocharged 4-cylinder engine, the Turbo3 will have more power than any of its predecessors. Exact weight figures have not been mentioned, but with 400 horsepower on tap, this thing should provide an insane driving experience, to say the least.
According to the builder “Every single detail has been refined, updated or redesigned to make this machine as timeless as possible and to deliver the most unique experience from the inside out.” This translates to the fact that the Turbo3 will feature a bespoke, hand-made, carbon fiber body kit, among other things! Night-time driving won’t be a problem like before, as this car will also be fitted with LED headlamps.
The car will be rolling on 16×8 rims in the front and 17×11 ones in the rear, and customers can choose between two different designs. This is, by all means, a car that was born in the ’80s, but it feels like it’s perfectly in tune with today’s trends. I get a feeling that this is going to weigh less than 2,204 lbs (1,000 kg), just like the original vehicle.
The cabin looks clean yet futuristic at the same time, and it looks as if you may get dual-climate controls, alongside a huge digital dash upfront. There’s no word about how much it will cost you to get your hands on one of these, but I imagine that it’s not going to be cheap. A 1980 Renault 5 Turbo can go for as much as $180,000, and if you consider the upgrade costs, you may end up paying Aventador money for the Turbo3. But then again, if you’ve always dreamed about this car, you might as well inquire about the product.
