ALLIANCE ABOLISHED?

Could the Renault-Nissan-Mitsubishi Alliance disappear in a puff of exhaust smoke?

Yes, if Nissan manages to extricate itself from the mess it has created, by attempting to oust Carlos Ghosn in one of the clumsiest corporate coups I have ever witnessed.

There are journalists the world over – business, general and automotive – who are currently writing the greatest load of drivel I have seen about the charges brought against Carlos Ghosn – intended to provide Nissan with a reason to boot him off the Board, and cancel his role as Chairman.

The media writes as if some unknown force is moving through the Renault-Nissan-Mitsubishi Alliance which appears to have magically-appeared, and which will kill off one of the most successful alliances the automotive world has seen in recent times, because of the alleged misdeeds of one of the car industry's most-respected chief executives.

To balance this view, I'll give them the benefit of the doubt. Maybe the media DOES know what's going on, but no-one wants to put it in print.

Let me explain what this whole deal is all about – in very simple words.

This whole mess is about Japanese loss-of-face – nothing more, nothing less.

For the sake of history, I will re-state that Carlos Ghosn came along and dug Nissan out of the poo it had created for itself with bad business models, over-investing in over-capacity, and building too many different cars on too many different platforms. Also it should be said, with little oversight of rampaging costs.

Very quickly, Ghosn’s laser-like focus zeroed in on the multitude of problems and pulled Nissan back from the edge of the abyss.

He later approached the then stultified and poor quality Nissan management with an idea that Renault and Nissan create an alliance – share platforms, cut costs, cut capacity, and do all the sensible things which are basic teachings at places like the Harvard Business School.

The time scale doesn’t matter, because lurking in the background was a cadre of younger Nissan managers who hated the very thought of the French company taking control of Japan’s number two carmaker – even if it did save its corporate arse. One of the group was Hiroto Saikawa.

The Alliance immediately began to make sense for both manufacturers and Nissan, as well as Renault, enjoyed the fruits of sharing technologies, research and development, and innovative manufacturing techniques.

However, all along the Renault-haters were hiding their light under a bushel, biding their time.

The Alliance became so successful that Ghosn could see that adding the struggling Mitsubishi would ensure that the Group had fingers in every automotive sector, and could leverage each manufacturer’s specialties and brand strengths.

To be fair here, is the current status of the Renault-Nissan  Alliance, and it's understandable to see why Nissan appears to have been driven to desperate, but ill-considered moves.

Renault owns 43 percent of Nissan and has the power to appoint execs. Nissan owns 15 percent of Renault, and has no voting rights. There is also resentment at Ghosn’s salary, which was reportedly considerably higher than that paid to any Japanese auto industry exec.

Nissan considers itself the stronger partner, and also wants to retain control of its considerable cash reserves.

In 2016 Ghosn, who clearly had a lot on his plate, and under pressure from Saikawa and the Nissan Board, decided to relinquish the Nissan CEO job to Saikawa.

Success at last!

Well, let’s say Step One was achieved in dragging Nissan further away from any French influence.

Then things get complicated. Nissan insinuates that Carlos Ghosn has been a naughty boy and not correctly stating his income from Nissan in the Nissan Corporate Tax filings. Now, anyone who runs a business knows that reporting is the sole responsibility of the company, not the individual.

The rumours of mis-reporting then reached the Renault Board, which to date, has swung all its support behind Carlos Ghosn. Ghosn is a French citizen, and a French taxpayer. If he’s going to get in trouble with tax authorities it will be in France, not Japan.

Now comes the news that this whole thing began with a Nissan whistleblower who allowed the misreporting transgression to be spread in a way to devastatingly damage Ghosn beyond rescue and thus be declared unsuitable to be Nissan Chairman.

Now, I don’t know if Carlos Ghosn is guilty as charged, but I very much doubt it. I have the highest regard for him as a forceful, insightful, experienced and resolute automotive executive. He is paid piles of cash by Renault, and is not a person who needs to understate his Japanese income.

To give you an idea how clumsy this attempt is; now Nissan and in fact Saikawa, are also now under investigation, because the investigators have admitted that corporate reporting is the responsibility of companies, so they are now looking into what part Saikawa may have played.

Of course, under Japan’s confusing, ambiguous and opaque business regulations, I am certain Saikawa-san will be found innocent, and all the blame shifted to Ghosn.

There is one other element that may be the driver for the Japanese. Apparently Ghosn had suggested that Renault could make a play for absorbing Nissan – and that would certainly upset the Japanese – so they would want Ghosn out before that train left the station.

So the sake of ‘saving face’ and regaining control of its own future, Nissan is prepared to go through this under-reporting charade, and in the process damaging the reputation of one of the automotive world’s highest achievers.

Here’s how I think this play out. There will be a strong, deep and exhaustive investigation, taking a few months. This, I am certain, will prove nothing, and it will be suggested to Ghosn that if he were to plead to some minor criminal offence, then he will pay a fine, and go back to France with his tail between his legs.

Actually, I sincerely believe the Japanese have grossly misunder-estimated Carlos Ghosn, and his resolve.

I don't think it will be long before he is back alongside his glamourous wife Carole, and again pushing his company to achieve even greater success

The Saikawa squad will then take over running Nissan-Infiniti (now there’s a brand with no future without Ghosn), and I suspect in a number of years Nissan will become corporate roadkill.

If the way Nissan has handled the separation of itself from Carlos Ghosn is any guide, I can only expect that it will once again drive itself to the edge of the abyss.

NEW ZEALAND SNAPSHOT

A two-hour flight east from the Gold Coast and you land in New Zealand – known either as ‘The Land of the Long White Cloud’ or the ‘Shaky Isles’.

That’s because parts of New Zealand are located on the edge of two Pacific ‘plates’ and it’s prone to earthquakes, mostly on the South Island. Also, it rains a lot, which accounts for the verdant countryside, extensive snowfields and lack of deserts.

What it also lacks is people. As at 2017 the population approached five million people, and as some of its biggest exports are wool and lamb, it’s not surprising there are 30 million sheep in New Zealand.

New Zealand’s GDP runs at about USD$60 billion annually, and politically it’s a stable country that possesses some of the finest scenery you’ll see anywhere in the world, which brings in tourists by the millions. The variation in the scenery stretches from stunning beaches, a range of small and beautiful islands, fjiords, snow-capped mountain ranges, lush farmland and extremes of cold weather.

Most Australians spend a good deal of their lives taking the piss out of Down Under’s tiny neighbor, but not me. I have the highest regard for the country, the people, and, despite its relatively tiny population, its amazing achievements.

New Zealanders also have a healthy sense of humour, and if you've ever flown on Air New Zealand and seen their hilarious in-flight safety videos, you'll know what I mean.

There are some stunningly innovative architectural works – many commercial, but mostly private homes which could sit happily in high net worth burbs in Los Angeles, Outer London and Switzerland.

The country’s architects lack neither vision, nor imagination.

The people who are able to afford these unique and unusual designs are clearly not short of money, nor taste.

The other reason I find it hard to criticize our Tasman neigbour are, once again compared to its tiny population, its sporting achievements.

In motor racing it has produced a Formula One World Champion, Denny Hulme, (above) and Bruce McLaren (right), whose name lives on both in Formula One, and as the makers of some of the world’s fastest and most expensive sports cars.

And, it's not just motor sport - the Kiwis excel at Rugby Union; they gave the world the talent and class of opera singer Dame Kiri Te Kanawa, and by the way, they won the America's Cup in sailing.

In fact it’s a conundrum, that a tiny country (by geographic size); a small, but industrious population; a modest GDP plus a successful tourist industry, can support a market where outrageously-expensive and rare sports cars can find homes, in some of the most expensive houses in the world.
Where does all this money come from?

It’s not unusual to spot a Lamborghini Aventador in the Auckland traffic; or an Aston Martin Vulcan being hurled around a racetrack; or a collection of McLaren owners gathering for a tour of the South Island.

No, in total these exoticars are not huge in number, but the fact that there are as many as there is says to me that New Zealand has some sort of mystery potion, consumed at least by some of its entrepreneurial business class, which produces sights like these.

If you’ve never visited New Zealand then do yourself a favour. Rent a vehicle (it could be anything from a touring car to a camper-van), put aside at least 14 days and give yourself over to some stunning roads and scenery on both islands. It will be a touring holiday you’ll never forget – if not for the scenery, then for the laid back, laconic way of life of the people.

However, most important of all, spend some time getting to know, understand, and appreciate the indigenous Maori culture of the country. These are an impressive race of people.

Arekatera Maihi - Rotorua

Yes, in the early settlements they bred vicious, warlike warriors and their fierce internecine battles over land, and disrespect were bloody and devastating. But, when the first British settlers (invaders?) arrived, these were people the explorers had to take seriously.

If you’ve ever witnessed the traditional Maori Haka welcome, you’ll recognize that these tattooed warriors meant business when the first Europeans stepped ashore. Of all European conquests of new lands, especially in the South Pacific, this was one which favoured the inhabitants, so much so that when the tribes suggested a treaty, which would be observed seriously by both sides, the Europeans signed willingly. That was because the alternative was not worth contemplating.

New Zealand today appears to have largely solved the issues surrounding integration of traditional and new inhabitants, and racial tensions do not seem to interfere with daily life, adding to the calm atmosphere which seems to imbue the country.

Put it on the bucket list – and do it!

This time I'm discovering New Zealand by sea, with 4300 other tourists, from the humungous behemoth of the oceans - 'Ovation of the Seas' - but it's been a great way to see both islands and their many attractions.

VALE - MIKE COOK

(Photo: JCNA)

I want to remember a dear friend with very close links to Jaguar, and his name is Michael Cook. Mike died this past week at 85 from pneumonia after a short illness.

We first met in Leonia, New Jersey in the early 80s when I was on a whistle-stop tour of a number of global Jaguar markets, and we became instant friends due to our shared love (folly?) of British marques. Our mutual enjoyment of modern jazz also helped cement our friendship.

Mike bought his first British sports car, a Triumph TR2 in 1958, and shortly after became PR Manager for the company, which over the decades, had a variety of operating names, but the brands he promoted included Triumph, Rover, MG and Jaguar.

I joined Jaguar Cars North America in 1990 as PR VP and Mike worked alongside me until Jaguar's disastrous fall in sales in 1991, forced us to offer retrenchment packages to a number of loyal, and long-serving employees, which included Mike.

However we remained loyal and true friends from that moment on. He helped ease me into a relationship with the Jaguar car club organisation after he had left the company, and his imprimatur, gave me instant credibility with a sometimes fractious, but fiercely loyal group of Jaguar enthusiasts.

Along with another dedicated Jaguar fan, the late Karen Miller, they managed a fantastic archive at the company headquarters in Mahwah, NJ. Anything you wanted to know, or wanted to trace, about Jaguars sold in the USA, Mike and Karen delivered.

He was a disciplined, old-school journalist, and edited two magazines (for Jaguar and Triumph enthusiasts), and always, but always, retained a sunny, devil-may-care attitude to life - as long as he didn't spend too long away from his big collection of jazz on vinyl, especially his much-played Miles Davis catalogue.

We corresponded regularly from 1991 up until just before his death, poking barbs at various things we found funny, ironic, or just unbelievable. I will miss his humor and laconic and loyal friendship.

So long Mike Cook, we had a good time together.

IN SEARCH OF NEW ROADS

Everyone needs a break, so DRIVING & LIFE is taking a couple of weeks to look for new trails.

Feel free to look back through the archive - there may have been something interesting you missed.....

MARRAKESH EXPRESS by PAUL GOVER

Standing high on a giant red dune at the edge of the Sahara desert, deep in the primitive heart of Morocco, is hard to explain.

It is majestic and beautiful. Ancient. The power of nature is all around me, shaping the world in ways I cannot understand but only observe and absorb.

Sometimes, standing on a high dune there's the quite eerie sound of a windsong, occasionally whipping up a dust devil.

I wish my son, nine-year-old Eli at home, counting down to Christmas, could be here beside me. Perhaps we will return at some time in the deep future, but with me standing beside a man.

Morocco, like a lot of north African countries gets a bad rap, but I found the people warm and friendly, and certainly more hospitable than the geography.

What would it be like to be here truly alone, not just a member of a Volkswagen press party taking an early pre-drive in the Touareg that’s coming in the middle of next year?

There is so much to see and so much to take in.

They filmed Lawrence of Arabia just over there.

Also, I can now feel the visceral impact from my memories of another favourite film, The English Patient.

There is no doubt, once you're here - this is a tough environment, that breeds tough people. Remember this is the country of the Moors, who centuries ago conquered Spain and most of southern Europe.

It’s something to think about, but only briefly . . .

The views themselves are terrifying. 

It’s not just the epic climb to one particular dune, that is double the height of Uluru, in a Touareg scrabbling for grip through sand that is softer than anything I have touched before - or the prospect of the sheer descent I will soon have to tackle.

Just over there is Algeria, a total no-go zone for anyone with an Australian passport. Terrorists train there.

Various rallies staged in the Sahara over the years have even managed to reduce celebrity drivers to quivering idots, such as the 1982 Paris-Dakar.

However, enough of that. Back to our own adventures, and there are plenty in this desolate landscape.

All around me are challenging and dangerous roads, as a British biker discovered yesterday when he collided with a car.

He is lucky that it’s only a broken leg and a trip home, as his once-pristine BMW has been bundled into a body bag.

Also, it's quite amazing how inventive you can be with temporary repairs when you realize where you are - the middle of nowhere!

Even the food needs to be treated with suspicion. Eat the wrong thing and the gut bugs can tear you apart. This is a matter I treat very seriously, having succumbed to various local bugs over the years when travelling in strange and different lands.

But the people are warm and friendly, like the two boys playing marbles in the dust, and the berbers who happily take around $2 to play extras in a short video for one of our crew.

I even managed to make friends with a camel!

I cannot talk in detail about the Touareg for a few days yet, because of an embargo, but it is hugely enjoyable to be travelling this land in luxury, and more than a little humbling to see the reaction from the locals we pass in our eight-car silver convoy. We wonder if they think we’re rock stars, or aliens . . .

It’s always the people you meet who make trips like this so memorable. There is transplanted Briton David Mather, who leads motorcycle adventure tours from his base in Spain, and Artem Doronin, who leads a giant Russian off-road team that races hulking trucks in the Dakar Rally. David and his crew chat over lunch, and Artem tells me about his work before heading into those giant red dunes to train for racing in Chile in January.

But it’s the locals who are so wonderful. They are calm and gentle, with warm eyes and open hearts. Surely they must compare our situations, and wonder about their end of the deal.

But there are many youngsters going to and from school, even the cats look happy and relatively well fed, and tomorrow there is rain to ease the barren landscape.

The roads we travel vary enormously, from the untracked dunes to European-style highways and hundreds of kilometres that could have been ripped up at home in Australia and dropped here. It’s strangely familiar, but if you look away from scenery which varies from snow-capped mountains to parched savanna and a marching line of big red dunes that dwarf anything outside Birdsville, you know this is a totally unique experience, not to be taken for granted.

It’s an epic country and an epic visit. In all my global travel I have never experienced anything like it.

The Touareg is only an extra in a life-sized adventure that will stay with me forever.

Marrakesh, a former imperial city in western Morocco, is a major economic centre and home to mosques, palaces and gardens. The medina is a densely packed, walled medieval city dating to the Berber Empire, with mazelike alleys where thriving souks (marketplaces) sell traditional textiles, pottery and jewellery. A symbol of the city, and visible for miles, is the Moorish minaret of 12th-century Koutoubia Mosque.

AT SPEED IN ASWAN

Yes, that’s right – the speedo is sitting on 235 kmh, and we’re on a public road.

It’s March 1990 and we’re on the highway from Aswan to Abu Simbel. 

My friend Paul Gover is at the wheel of the new Peugeot 605 sedan.

 Paul and I shared the driving - at one point seeing which one of us could hold the accelerator flat to the floor before getting a leg cramp.

Gover won. But he's a more dedicated performance driver than me - I think he lasted 34 minutes!

The Egyptian authorities had completely closed the road to all other traffic, as 74 journalists from all over the globe drove 605s flat out from their luxury Nile River cruise boat to Abu Simbel – for lunch.

The highway is just over 166km of dead flat road piercing the desert sand like a black ribbon.

And, aside from our fleet of 605s, there’s not another vehicle in sight.

Oh yes, then after lunch we had a tour of the magnificent and historic ruins of Abu Simbel built in 362BC, which had to be broken down, all stones numbered, and then rebuilt on higher ground.

The project to construct the Aswan High Dam was begun in 1960, and completed in 1970. It also produces about 20% of Egypt's power needs via a hydro scheme.

How surreal - blisteringly-hot desert, nothing to see, and then arriving at a luxurious resort to lunch on fresh fish and fresh local vegetables. Plus, of course, the obligitory French wine!

The idea to dam the Nile at Aswan, and control its flow to the Mediterranean was certainly controversial, but has since proved to be a lifeline for Egypt.

Next day we headed north for what I consider to be the highlight of the trip.

The 605s were spruced up overnight, and ready for what turned out to be a very slow drive to Luxor. Local traffic had not been disrupted this time, and we did battle with tour buses, taxis, private cars and horse-drawn carts on a narrow, two-lane road.

It was well worth it. The ruins date back to 1264BC, and have certainly suffered degradation by desert winds and ageing, but sufficient remains in place to allow visitors to gaze in awe at the achievements of ancient Egyptians.

This was a particularly important and poignant trip for me, as my father served with the Royal Australian Air Force during WW2, and was stationed near Alexandria, and Giza.

When he arrived in Eygpt he joined 451 Squadron at its base at Marsah Matruh, on the Mediterranean coast.

The Squadron was active when he arrived, but as the situation in North Africa was volatile and very fluid, the Squadron was stood down for a few months months, awaiting a new batch of aircraft from England.

In December 1943 a fleet of Hawker Hurricanes arrived, and the Squadron was listed again as active, with the pilots flying support missions for allied shipping in the southern Mediterranean.

He and a few members of his squadron were taken on a trip to Luxor, the day before they were shipped back to Australia in late 1944.

As I said, this current event was the international press launch of the Peugeot 605.

The whole production (because that's what it was), began with an unveiling of the car  at the Geneva Salon, after which we piled aboard an Air France 737-200, chartered by Peugeot.

We flew from Geneva to Paris Orly to pick up the French group, then back to Linate, near Milan to pick up the Italian contingent, then direct to Lake Nasser (below).

The four Aussies were completely overwhelmed by the noise of lively conversation in French and Italian, but it was a fantastic trip.

I distinctly remember the wonderful quality of the French food and wine served on board the four hour flight.

On arrival, we were simply whisked through the terminal into coaches and taken to our cruise boats - with a warning: "Don't drink local water; don't eat salads washed in local water; and clean your teeth with mineral water."

Sadly, one of our number had ice cubes in his Coke, and you can imagine the outcome - don't stray too far from a toilet.

I have to hand it to Peugeot’s head of PR, Corrado Provera, he had everything covered.

We had an official from the Egyptian Foreign Office on board the 737, who stamped visas in all our passports; then also ensured everyone on board purchased a minimum of 20 Egyptian pounds – which was a pretty neat way for the Egyptians to haul in some hard currency.

When I was back in London, I went to my Barclays Bank branch in Bruton Street to cash in my prized foreign currency, and the 20 Egyptian pounds were worth a little over two pounds sterling! I bought a sandwich and coffee for lunch with the proceeds.

I was accompanied on the trip by three of my best friends among the Australian motoring press corp. John Carey, representing WHEELS magazine; Paul Gover, Editor of CAR AUSTRALIA magazine; and the late David Robertson who was with The Sydney Morning Herald.

We had a whale of a time. I decided we would fly from Sydney, into Zurich, and switch across a number of different trains for the journey from Zurich to Geneva.

One section included the fantastic Golden Pass route from Zweisimmen to Montreux, arriving in Geneva, in time for the first Press Day at the Salon and the 605 unveiling.

This life lived among cars, and outstanding journalistic talent has been, for me, the mark of a life well lived, much enjoyed, and representing fabulous good fortune. Plus, I got to see a lot of the world, although the trip to Egypt was very special.

AUDI A8 - A MODEL FOR DIPLOMACY

“Okay, okay, ich gehe jetzt, um Frau Merkel vom Reichstag abzuholen“ I say, speaking into the sleeve of my jacket.

Sorry, translation required: 

“Okay, okay, I’m leaving now to pick up Chancellor Merkel from the Reichstag.”

I'd better get my skates on, can't keep an important lady waiting.

Fire up the whisper-quiet 5.0L diesel and wind through the streets of Berlin, along with a dozen other black Audi sedans.

There! In one sentence I’ve zeroed in on the frontline customers for Audi’s A8 sedan.

This is a car built to demonstrate Audi’s unquestioned ability to deliver exactly the right automotive formula for ferrying around German Chancellor Angel Merkel, and her buddies in the Bundestag.

It’s a statement of national pride, and I’m not sure Audi had much say in the matter – “We need sumptuous luxury, performance and comfort for our politicians and VIPs.” End of story. Purchase order signed!

Sure this is Audi’s pinnacle sedan, helped along by the heft of a 5.0L, turbocharged V6 diesel, pushing out 210kW, and a monstrous 600 Nm of torque, from just 1250rpm, via an 8-speed paddle shifter.

It sprints to 100km/h under 6 seconds. Not bad for a 2200kg lump of steel and alloy (about 4700lbs). Which could be very handy if the chauffeur has been instructed to outrun a pursuing carload of crazed terrorists.

You will undoubtedly see fleets of black Audi A8s constantly in German news clips, with pollies and VIPs easing themselves as gracefully as possible from the (tight) back seat. But apart from diplomats, and members of Germany’s federal government, for the life of me I can’t see who else would buy this publicly-purchased Uber.

Driving the A8 however, is a sublime pleasure, and so it should be, in its role as a Chancellor’s chariot.

It steers well, rides beautifully, has all the power you might need, and is s-m-o-o-t-h. Very understated, well finished and of course, has ALL the techno bells and whistles.

But, on behalf of Germany’s Foreign Ministry Purchasing Managers, and any other deluded consumers about to sign on the dotted line, I think it’s worth starting with a bit of old-fashioned horse-trading.

The A8's thirsty and, very expensive for what it is.

Here’s the Australian pricing sheet, and yes, you are entitled to a minor heart tremor at the bottom line. I also think it’s very cheeky to offer all the stuff in the Premium-Plus package for an optional AUD$11,000.

When you read through the inclusions in the Premium-Plus package, I reckon every item ought to be standard equipment included in the base price. Remember, this is supposed to be a diplomat’s delight, and yet again Audi finds a way to screw the customer!

The other issue which I am sure will completely alarm Audi aficionados is the disappearance of Audi’s famed MMI system controlled by a circular knob in the central console. 

After all, when BMW launched its totally impossible-to-understand-and-use i-Drive, Audi floored everyone with a system that was intuitive, easy to use and very impressive. It made all choices easy, and the execution was simple as.

Now, just to show off how clever their techno boffins are, it’s all been moved to two touchscreens in the centre of the dash, and quite frankly, is a massive disappointment, and a major fail.

It is certainly NOT intuitive; it IS distracting; it IS complicated, and finally - bloody frustrating.

I simply reverted to using Apple CarPlay - a much simpler, and more effective solution!

The Audi PR machine will probably now issue a fatwa on me, for being so stupid as to not be able to instantly figure out its new-age technology, and for insulting its cyber-superiority. Sorry, but it has to be said – the new system is definitely a backward step.

After a day or so at the wheel of most older, MMI-equipped Audis, drivers could just about drop their fingers exactly where they wanted, fiddle about, without taking their eyes off the road, and get things done – ‘tout suite’.

Sorry for the French phrase, but the German translation, 'jetzt sofort', sounds like an ad for jet-powered breakfast cereal! 

So, is the A8 worth the money? Yes, and, No! It’s a sumptuous cruiser, solid as a rock and beautifully built, but there are literally dozens of competitors out there, both cheaper and also more expensive, which would result in lots of A8s sitting on dealers’ showroom floors.

For example, on a purely practical level, the new Mazda 6; the KIA Stinger and Holden’s new Commodore do all the same things probably just as well, and for much less money. The A8 exists purely because Audi needs a topline sedan, and I don’t think Audi cares very much who (if anyone), other than German government purchasing managers, buys it.

NOTE: The V6-powered A8 is NOT Angela Merkel's daily driver. One of her cars is weighed down with armour plating, and bullet-proof windows and is powered by Audi's superb V10 - also used by Automobili Lamborghini.