Tag: vehicles (Page 4 of 6)

Daimler, Volvo Mull Combustion Engine Cooperation

January 5, 2020 / WIL BALDWIN

BERLIN (Reuters) – Luxury German carmaker Daimler <DDAIF> and Volvo Cars, owned by China’s Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources.

The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody.

A Daimler spokesman said the company’s cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further.

Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs.

In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines.

The Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains.

Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China.

Geely bought Volvo Cars in 2010 from Ford Motor Co <F.N>, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands.

Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely’s Lynk brand. Both companies share and develop common vehicle platforms.

(Reporting by Emma Thomasson and Georg Merziger; editing by Jason Neely)

Bombardier Joint Venture Wins Contract to Build 160 New Chinese Standard High-Speed Train Cars

January 4, 2020 / WIL BALDWIN

With around 4,500 train cars already delivered, Bombardier’s Chinese joint venture is the only Sino-foreign entity to win a new Chinese standard high-speed train bid
New Chinese standard high-speed train cars to enhance passenger experience and contribute to the expansion of the world’s longest high-speed rail network

Global mobility solution provider Bombardier Transportation announced today that its Chinese joint venture, Bombardier Sifang (Qingdao) Transportation Ltd. (BST), has been awarded a contract from China State Railway Group Co., Ltd. (CHINA RAILWAY) to supply 160 CR400AF cars, a new Chinese standard high-speed train car for China’s evolving high-speed rail network. The 160 cars will be configured into ten 16-car trainsets with an operating speed of 350 km/h. The total contract is valued at approximately 2.97 billion CNY ($427 million US, 380 million euro). Bombardier Transportation owns 50 per cent of the shares in BST, which is consolidated by Bombardier Transportation’s partner CRRC Sifang Rolling Stock Co., Ltd.

Jianwei Zhang, President, Bombardier Transportation China, said, “We are very proud to have been chosen to supply the new generation of CR400AF cars, a high-speed railway car, through our BST joint venture. China’s high-speed rail industry has become one of the nation’s economic pillar industries and the high-speed network has brought greater mobility and prosperity to the public. Bombardier is proud of its contributions to China’s rail industry and looks forward to delivering more of the high-quality products that are helping China meet its ambitious long-term mobility goals.”

In 2018, BST won two contracts to build a total of 288 CR400AF cars and every car was delivered on-time and on quality. This latest contract is BST’s third and reflects the trust that CHINA RAILWAY has in BST’s efficiency, reliability and competitive edge. All 160 cars will be delivered by mid-2020.

Bombardier Transportation in China is the full solution provider across the entire value chain. From vehicles and propulsion to services and design, Bombardier Transportation in China has seven joint ventures, six wholly foreign-owned enterprises, and more than 8,000 employees. Together, the joint ventures have delivered 4,500 railway passenger cars, 580 electric locomotives and over 2,500 metro cars, Monorail, APM, and trams to China’s growing rail transit markets. It is a major signalling supplier to the Chinese high-speed network and through its joint ventures, propulsion equipment and signalling systems are utilized in a total of 30 Chinese cities.

After Tesla’s Record Year in Norway, Rivals Gear Up for 2020

January 3, 2020 / WIL BALDWIN

FILE PHOTO: A 2018 Tesla Model 3 electric vehicle is shown in Cardiff, California

OSLO (Reuters) – The sale of new electric cars in Norway rose by 30.9% last year amid soaring demand for Tesla Inc’s <TSLA> vehicles, but the pioneering U.S. firm faces rising competition from rival auto makers in 2020.

Fully electric cars made up 42.4% of sales in the Nordic nation last year, a global record, rising from a 31.2% market share in 2018 and just 5.5% in 2013, the Norwegian Road Federation said on Friday.

Seeking to become the first country to end the sale of fossil-fueled cars by 2025, Norway exempts battery-powered vehicles from the taxes imposed on petrol and diesel engines.

This year, as many as six in 10 of all new cars sold in the country could be fully electric, said Volkswagen <VWAPY> distributor Harald A. Moeller AS, which is preparing to launch several models in 2020.

“The electrification of the car market is accelerating … we forecast electric vehicles to hold a 100% market share in 2025,” the importer said of the outlook for Norway.

The country’s best-selling car in 2019 was Tesla’s mid-sized Model 3 sedan, which retails from 384,900 Norwegian crowns ($43,721.74), racking up an 11% market share in the California-based firm’s first attempt at addressing the mass market.

(Reporting by Victoria Klesty and Lefteris Karagiannopoulos, writing by Terje Solsvik, editing by Gwladys Fouche)

Sydney Light Rail Commences Revenue Service

December 15, 2019 / WIL BALDWIN

Light Rail returns to the heart of Sydney

Alstom congratulates Transport for New South Wales (TfNSW), on the opening of the CBD and South East Light Rail project and the start of revenue service, returning Light Rail back down Sydney’s George St for the first time in more than 60 years.

Alstom, as part of the ALTRAC Light Rail consortium[1], has been responsible for the integrated light rail system that included the design, delivery and commissioning of 60 Citadis X05 Light Rail Vehicles (LRV), power supply equipment including APS – the wire-free ground-based power supply (over two kilometres), the energy recovery substations – HESOP, signalling, communications, depot equipment and 19 years of maintenance.

The new 12km network has been delivered under a turnkey PPP model that will provide the commuters of Sydney with frequent, reliable, high capacity services running from Circular Quay in the city’s CBD to Central Station, then south east to Randwick. Each LRV has a capacity of 450 passengers – the equivalent of nine standard buses and will move up to 13,500 commuters per hour (6,750 in each direction) during peak times once fully operational. Normal tram services will operate seven days a week between 5am and 1am.

As part of the contract, the consortium has also taken over the operations and maintenance of the existing Inner West Light rail (IWLR) that connects Sydney’s inner west with the Pyrmont peninsula, Darling Harbour and the southern CBD. Alstom is also responsible for the maintenance of the existing system which includes 12 CAF Light Rail Vehicles.

“Alstom is extremely proud to be a part of this iconic project” said Mark Coxon, Managing Director for Alstom in Australia & New Zealand, “This new Light Rail system will transform Sydney and provide a step change in the city’s public transport capability and reliability while protecting the aesthetic appeal of the CBD and improving sustainability of the overall transport network”

[1] Made up of Alstom, Transdev, Acciona and Capella

Bombardier Wins New Heavy Maintenance and Refurbishment Contract for Sweden

December 15, 2019 / WIL BALDWIN

Bombardier will perform heavy maintenance and refurbish 59 Bombardier-built REGINA commuter trains, improving safety and comfort for every passenger’s journey in Sweden
Latest contract highlights Bombardier’s position as industry-leading mobility services provider in the Swedish market

Mobility technology solution provider Bombardier Transportation announced today that it has signed a new services contract with AB Transitio, Sweden’s rail vehicle leasing company, to perform heavy maintenance and refurbish 59 BOMBARDIER REGINA Electric Multiple Unit (EMU) trains. The contract is valued around SEK 280 million ($30 million US, €27 million euro) over a period of five years. Deliveries of the newly refurbished trains is planned to start in mid-2020 with pre-series deliveries and will continue until mid-2024.

“With this new contract, Bombardier is expanding its services footprint in Sweden by maintaining the REGINA EMU trains operated by regional and private rail authorities, as well as refurbishing these trains to bring safe and reliable service to over millions of passengers across Sweden every year,” said Marina Sundman, Chief Commercial Office, Nordics Region, Bombardier Transportation. “We are proud to deepen our long-term relationship with AB Transitio and we are more committed than ever to delivering our range of service solutions to help customers maximize value from their assets.”

Around 20 years ago, our local teams designed and built these vehicles which are appreciated by the local rail operators. Today, more than 100 REGINA EMU trains operate across Sweden’s rail network in various car configurations, each train having travelled an average of 200.000 km per year in regional and intercity traffic, supporting the public transport authorities from south to the upper north of Sweden.

In addition to undertaking heavy maintenance on 59 REGINA EMU trains (54 trains of 2 cars and 5 trains of 3 cars each), our teams will also be involved in technical and comfort upgrades such as changing interior carpets, exterior paint, passenger seats refurbishment, interior lighting, installing additional pantograph with control equipment and new headlights.

This project marks a milestone in the development of our refurbishment activities and contributes to placing Bombardier as the leader of this market segment in Sweden. Bombardier is an important player in Sweden’s rail industry as a leading supplier of metros, trams, high speed trains, signalling systems and services.

Bombardier built REGINA EMU train for Sweden

Daimler to Ax at Least 10,000 Jobs in Latest Car Industry Cuts

November 30, 2019 / WIL BALDWIN

FRANKFURT (Reuters) – Daimler said on Friday it will cut at least 10,000 jobs worldwide over the next three years, following others in the industry as they cut costs to invest in electric vehicles while grappling with weakening sales.

It marks the third announcement on cost cuts this week by a major German car company as automakers seek to fund huge investments into cleaner and self-driving technologies while demand in China, their biggest market, is falling and a trade war between Washington and Beijing is curbing economic growth.

“The automotive industry is in the middle of the biggest transformation in its history,” Daimler said in a statement.

Daimler, the owner of Mercedes-Benz, revealed the 3% cut in its workforce after reaching an agreement on its plans with labor unions.

They have agreed on a variety of measures to cut costs and jobs, including expanding part-time retirement and a severance program to be offered in Germany. The company is also cutting 10% of worldwide management positions.

Staff reductions would be in the low five-digits, or at least 10,000 people, according to Wilfried Porth, a board member in charge of human resources. The company employed 304,680 staff at the end of the third quarter.

Plans laid out by Daimler in November showed the company aimed to cut staff costs by around 1.4 billion euros ($1.54 billion) by the end of 2022.

The announcement comes days after Volkswagen’s <VOWG_p.DE> luxury car unit Audi said it would cut up to 9,500 jobs or one in ten staff by 2025, freeing up billions of euros to fund its shift toward electric vehicle production.

Also this week, BMW said that its management and labor had reached an agreement on measures to reduce bonus and other pay schemes for staff to cut costs.

Car suppliers Continental and Osram have also announced staff and cost cuts.

Daimler has repeatedly cut its profit outlook over recent months, partly to cover a regulatory crackdown on diesel emissions but also because of a slowing auto market.

Group operating profit will be “significantly lower” than a year ago, the company said last month.

Other measures to reduce staffing costs include offering shorter working weeks.

Agreements in place to prevent forced redundancies in Germany until 2029 will remain in place, Daimler said.

The workforce needs a clear strategy for the future, said Michael Brecht, chairman of Daimler’s works council. “A reduction in capacity must not be carried out on the backs of the employees,” he said.

(Editing by Elaine Hardcastle)

The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin

Tesla Unveils Electric Pickup Truck with Futuristic Design

November 22, 2019 / WIL BALDWIN

Click to make your fully refundable $100 Tesla deposit

Starting price of $39,900
Most expensive version offers a range of more than 500 miles
Production expected to begin in late 2021 (Recasts and writes through)

Nov 21 (Reuters) – Tesla Inc on Thursday unveiled its first electric pickup truck that looked like a futuristic angular armored vehicle in gunmetal gray, as the California company took aim at the heart of Detroit automakers’ profits.

At a launch event in Los Angeles, Tesla Chief Executive Elon Musk said the Cybertruck will have a starting price of $39,900 and production is expected to begin in late 2021.

Other versions will be priced at $49,900 and $69,900 with the most expensive offering a range of more than 500 miles.

“We need sustainable energy now. If we don’t have a pickup truck, we can’t solve it. The top 3 selling vehicles in America are pickup trucks. To solve sustainable energy, we have to have a pickup truck,” he said.

The truck, which Musk claimed “won’t scratch and dent”, was described as having windows made from armored glass. But the glass cracked like a spider web when hit with a metal ball during a demonstration. Musk appeared surprised but noted that the glass had not completely broken.

Reactions on Twitter ranged from love to hate of the sharply angled vehicle. “I just watched tesla release the #cybertruck and honestly? My life feels complete,” wrote @aidan_tenud, while @nateallensnyde wrote “Its nice to see Elon Musk make a cardboard box car he drew in kindergarten,”.

Musk earlier tweeted the design was partly influenced by the Lotus Esprit sportscar that doubled as a submarine in the 1970s 007 film “The Spy Who Loved Me”.

The truck marks the first foray by Tesla, whose Model 3 sedan is the world’s top-selling battery electric car, into pickup trucks, a market dominated by Ford Motor Co’s F-150, along with models by General Motors Co, and Fiat Chrysler Automobiles NV .

The pickup shifts Tesla more toward trucks and SUVs. The automaker has so far sold mostly Model S and Model 3 sedans, but also offers the Model X SUV and starting next year the Model Y compact SUV.

A focus on the high-performance end of the market is only natural given the success of Ford’s 450-horsepower F-150 Raptor truck, which launched in 2009 and whose sales have since risen annually, according to Ford spokesman Mike Levine.

While Ford does not disclose Raptor sales, Levine said annual demand is well above 19,000 vehicles and the No. 2 U.S. automaker has never had to offer incentives on the model, which costs in the high $60,000 range. Ford also offers the more expensive F-150 Limited, its most powerful and luxurious pickup.

Ford and GM are also gearing up to challenge Tesla more directly with new offerings like the Ford Mustang Mach E electric SUV as well as electric pickups.

Electric pickups and SUVs could help Ford and GM generate the significant EV sales they will need to meet tougher emission standards and EV mandates in California and other states.

The Trump administration is moving to roll back those standards, but electric trucks are a hedge if California prevails.

Demand for full-size electric pickup trucks in the near term may not be huge, however.

Industry tracking firm IHS Markit estimates the electric truck segment – both full- and mid-sized models – will account for about 75,000 sales in 2026, compared with an expected 3 million light trucks overall. The Tesla truck is not part of that estimate.

Ford aims to sell an electric F-series in late 2021, sources familiar with the plans said. It also will offer the Mach E next year as part of its plan to invest $11.5 billion by 2022 to electrify its vehicles.

In April, Ford invested $500 million in startup Rivian, which plans to build its own electric pickup beginning in fall 2020.

GM plans to build a family of premium electric pickup trucks and SUVs, with the first pickup due to go on sale in the fall of 2021. It plans to invest $8 billion by 2023 to develop electric and self-driving vehicles.

(Reporting by Naomi Tajitsu in Tokyo and Peter Henderson in San Francisco; Additional reporting by Miyoung Kim in Singapore and Joseph White in Detroit; Editing by Edwina Gibbs)

Tesla Sedans Regain Consumer Reports Recommended Status

November 14, 2019 / WIL BALDWIN

DETROIT (Reuters) – Tesla Inc’s <TSLA> Model 3 and S sedans both regained “recommended” status in Consumer Reports magazine’s annual reliability survey, allowing the electric carmaker’s overall standing to rise slightly.

Tesla’s ranking improved four spots to No. 23 out of 30 brands in the U.S. market as it worked to resolve production problems with the Model 3, said Jake Fisher, senior director of auto testing at Consumer Reports. Both the Model 3 and S raised their reliability ratings to “average.”

“People really like their cars,” he said of Tesla owners. “Hopefully, if that frantic rate of change can slow down a bit, they can maintain reliability.”

Tesla has touted the popularity of the Model S, listed in the top ranks of a different Consumer Reports survey, on owner satisfaction, every year since 2013 when the carmaker was first included.

Fisher cautioned he expected Tesla’s reliability to remain fluid given its inconsistent track record.

Tesla’s Model X SUV still ranks among the least reliable models, according to the annual survey released on Thursday.

The poll predicts which new cars will give owners fewer or more problems, based on data collected for more than 400,000 vehicles. Its scorecard is influential among consumers and industry executives.

Reliability rankings tend to suffer when automakers offer new or redesigned models, which dragged down Volkswagen AG’s <VWAGY> namesake and Audi brands. The VW brand slid nine spots to No. 27, while Audi fell seven spots to No. 14.

Brands with no major changes to their lineups, such as Fiat Chrysler Automobiles’ <FCAU> Dodge and Chrysler, made significant gains. Dodge was the highest ranked U.S. brand at No. 8, making the biggest gain of 13 spots. Chrysler rose seven spots to No. 19, while Jeep finished at No. 26.

Ford Motor Co’s <F> Lincoln and Ford brands were No. 15 and 16, while General Motors Co’s <GM> Buick, GMC, Chevrolet and Cadillac brands ranked No. 18, 22, 25 and last at 30, respectively.

The reliability of full-sized pickups, the most popular vehicles in the U.S. market, was weak. Ford’s F-150 and FCA’s Ram trucks were rated “well below average,” while GM’s pickups – the Chevrolet Silverado and GMC Sierra – both had “below average” reliability.

Toyota Motor Corp’s <TM> Lexus luxury brand finished atop the survey, followed by Mazda Motor Corp <MZDAY> and the Toyota brand.

(Reporting by Ben Klayman in Detroit; Editing by Richard Chang)

SBB’s New Double-Deck Train is Getting Better and Better

November 10, 2019 / WIL BALDWIN

Significant increase in reliability and ride comfort

The introduction of the new “FV-Dosto” double-deck long-distance train on the Swiss Federal Railways (SBB) route network is making significant and measurable progress. As the manufacturer Bombardier Transportation explained at its Swiss headquarters in Zurich, the reliability of the 25 trains available to the SBB has been increased by a factor of seven, and ride comfort has been substantially improved thanks to newly installed software. This and the train’s highly energy-efficient drive concept, also led to a significant improvement in punctuality on the routes operated with the FV-Dosto. With the help of software developed and adapted by Bombardier, it has been possible to reduce the previously noticeable vibrations, particularly in the upper decks of trains by up to 75 per cent, thereby substantially increasing ride comfort.

As Stéphane Wettstein, the Swiss Managing Director of Bombardier Transportation, explained, the technical reliability of the FV-Dosto trains used, once again significantly increased to 6,914 km of trouble-free operation in October. This corresponds to an improvement by a factor of seven over the last 11 months. Approximately 34 per cent of service disruptions are caused by operational and passenger-triggered incidents and accordingly affect the overall reliability of operations. Wettstein put the increase in the technical reliability of the trains down to the effectiveness of the agreed actions and the increasing mileage of the Dosto fleet, which has now covered a total of around 2.27 million kilometres. He is therefore confident that technical and operational reliability will continue to improve steadily. Since the timetable change in December 2018, around 75 per cent of the technical causes of disruptions have been eliminated.

Reliability and drive concept have a positive effect on punctuality

The greater reliability and increasing trouble-free availability of the trains also have a positive effect on the punctuality of the IR and IC services operated by the FV-Dosto. According to the surveys on the statistics website pünktlichkeit.ch, it is better in eastern Switzerland than in other parts of the country. This is not only due to higher reliability of the FV-Dosto trains, but also to their drive concept: unlike conventional trains, the FV-Dosto is not pulled or pushed by a locomotive, but driven by high energy-efficient and permanent magnet motors on the axles of the individual carriages. This allows long-distance trains to accelerate much faster, which positively contributes to timetable adherence.

Substantial improvement of ride comfort

In recent weeks, great progress has also been made in terms of ride comfort. With the new software installed in September 2019, it has been possible to eliminate the vibrations that used to be felt, mainly in the upper deck, to such an extent that some of them are now lower than in conventional double-deck trains. However, Stéphane Wettstein pointed out that, although Bombardier’s mechatronic bogies had been able to improve ride comfort, railway infrastructure, which also influences passengers’ level of comfort, has not gotten any better.

The technologically complex system for eliminating vibrations is based on stabilizing the carriage body in every driving situation, in such a way that the passenger feels less of the centrifugal forces in curves and changes of direction when passing over points than in conventional double-deck or tilting trains. While the ICN tilting train, which was also built by Bombardier as the consortium leader, tilts inwards in curves up to 7°, the FV-Dosto stays perpendicular to the track level. Together with the drive system and the pressure-tight carriage body, which prevents unpleasant pressure on the ears, especially when travelling through tunnels, this system is one of the major innovations of what is currently the world’s most modern long-distance train.

SBB already has 25 new trains

“The FV-Dosto is technologically a leading product in the industry in terms of its energy efficiency and the wide range of comfort it offers its passengers, even on a global scale – something Switzerland can be proud of, especially since important systems such as the traction or the bogies were developed in Switzerland and are largely manufactured in Switzerland,” says Swiss Managing Director of Bombardier Transportation Stéphane Wettstein.

Bombardier has now delivered a total of 25 of the FV-Dosto trains, which corresponds to SBB’s planning for the timetable change in 2019. By summer 2021, the entire fleet of (62) trains will have been delivered. The great public interest in the FV-Dosto has also prompted Bombardier to intensify communication regarding this high-tech train. The company has launched a website at swissdosto.ch which provides continually updated information on the introduction and operation of the train on the Swiss rail network.

Bombardier creates considerable value in Switzerland

Bombardier Transportation is one of the world’s largest manufacturers of public transport vehicles, mainly rail vehicles. The company is headquartered in Montreal, Canada and employs around 40,000 people around the world. More than 100,000 Bombardier vehicles are in service worldwide, carrying some 500 million passengers every day. In Switzerland, Bombardier’s roots go back some 120 years; many of the famous Swiss railway manufacturers from Secheron and MFO to BBC, ABB and Schindler Waggonbau to SLM have been combined under Bombardier over the decades. Today, around 870 employees work for Bombardier in Switzerland, 340 of them at the headquarters and global development centre in Zurich and 530 at the Villeneuve (VD) plant. Numerous Swiss suppliers are also involved in the development and production of the FV-Dosto, and their order volume accounts for around 50 per cent of the total external investment volume of CHF 600 million for the (62) ordered trains. After all, Bombardier is not only the supplier of FV-Dosto for SBB, but also of locomotives, technical services and the BOMBARDIER FLEXITYtram, which is already being used successfully in Geneva and Basel and the first of which will also be handed over to the Zurich public transport operator VBZ on November 15, 2019.

Fiat Chrysler, Peugeot Owner PSA Once Again in Talks to Combine

October 29, 2019 / WIL BALDWIN

(Reuters) – Fiat Chrysler and Peugeot owner PSA are in talks to combine in a deal that could create a $50 billion (£38.88 billion) automaker, a source familiar with the matter said on Tuesday.

Fiat Chrysler shares rose sharply after news of the talks and ended up more than 7.5% in U.S. trading. The companies and the French government had no comment.

The Wall Street Journal first reported the discussions. PSA’s supervisory board was due to meet on Wednesday to discuss the potential merger, another source close to the matter said.

If a combination of Peugeot and Fiat Chrysler succeeded in overcoming political, financial and governance hurdles, the new enterprise would still face substantial challenges. Global automakers face the prospect of a slowdown in global demand coinciding with the most dramatic technology changes in a century.

Peugeot Chief Executive Carlos Tavares has predicted “ten years of chaos” for global automakers as regulators demand a switch to electric vehicles to reduce emissions linked to climate change.

Investors have speculated for several years that Fiat Chrysler was hunting for a merger partner, encouraged by the rhetoric of the company’s late chief executive, Sergio Marchionne.

In 2015, Marchionne outlined the case for consolidation of the auto industry and tried unsuccessfully to interest General Motors Co in a deal. Fiat Chrysler earlier this year broached a merger with French automaker Renault SA that ultimately collapsed.

Created when Fiat, under Marchionne’s leadership, bought control of Chrysler out of a U.S. government-backed bankruptcy in 2009, Fiat Chrysler has one of the global auto industry’s most profitable franchises in the Jeep sport utility vehicle brand and a money-spinning North American pickup and commercial van operation in Ram. Both would boost Peugeot, which does not sell vehicles in the U.S. market.

Peugeot and Fiat Chrysler could over time share engines and vehicle architectures, reducing capital spending and freeing up cash to invest in electric vehicles and emissions reduction technology required in Europe, China and other global markets.

Fiat Chrysler is under increasing pressure to invest in clean car technology. The company disclosed earlier this month that it faces a $79 million fine for falling short of U.S. fuel efficiency standards. Fiat Chrysler agreed to pay U.S. electric car maker Tesla Inc for credits to help it comply with European emissions standards until 2022.

Evercore analyst Arndt Ellinghorst in a note on Tuesday said a combination of Fiat Chrysler and Peugeot “should ignite more rational industry behavior around allocation of capital and this particular merger makes materially more sense than a potential FCA-Renault merger.”

Peugeot and Fiat Chrysler had discussed a combination earlier this year, before Fiat Chrysler proposed a $35 billion merger with Renault. At that time, Fiat Chrysler said a deal with Renault offered more advantages than a combination with Peugeot.

Fiat Chrysler Chairman John Elkann broke off talks with Renault in June after French government officials intervened and pushed for Renault first to resolve tensions with its Japanese alliance partner, Nissan Motor Co.

Following the collapse of the Renault merger plan, Fiat Chrysler CEO Mike Manley left the door open for talks with would-be partners. But he said the Italian-American automaker could go it alone despite mounting costs to develop electric vehicles and comply with tougher emissions rules in Europe, the United States and China.

Along with Jeep and Ram would come Fiat’s Italian operations, which have struggled in recent years. Fiat’s Mirafiori assembly complex in its home city of Turin has run below 50% capacity, with thousands of workers on temporary layoffs.

Overall, Fiat has 58,000 workers in Italy, where the government has long resisted mass lay-offs by large employers.

Peugeot’s Tavares dismissed the idea of a combination with Fiat Chrysler during a discussion with reporters at the Frankfurt auto show last month. “We don’t need it,” he said when asked whether he was still interested in a deal with Fiat Chrysler.

Tavares has moved aggressively to expand Peugeot, acquiring German auto brand Opel from General Motors Co for $2.6 billion in 2017. Since then, he has overseen a turnaround at Opel.

Fiat Chrysler already has a commercial vehicle partnership with Peugeot.

(Reporting by Dominic Roshan K.L. in Bengaluru; Editing by Maju Samuel, Richard Chang and Dan Grebler)

Reliability and drive concept have a positive effect on punctuality

Substantial improvement of ride comfort

SBB already has 25 new trains

Bombardier creates considerable value in Switzerland

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