Daily Management Review

Development of Mobility Apps the Priority for Take Over of French Tech firm by Renault & Nissan


Development of Mobility Apps the Priority for Take Over of French Tech firm by Renault & Nissan
As automakers Renault SA and Nissan Motor Co compete with global automakers and tech firms in the race for development of new services including ride hailing and car sharing, the companies announced that they would jointly buy over the French software development company Sylpheo.
Their software development and cloud based engineering expertise would be significantly boosted by the acquisition of the French tech company. in the joint statement the French and Japanese automakers said that they would absorb Sylpheo's 40 engineers and consultants according ot the deal of the agreement for acquiring the company.
"The Sylpheo team of software developers and cloud engineers joining the Alliance will have a unique opportunity to work on our next generation of connected cars and other advanced technologies," said Ogi Redzic, Renault-Nissan's senior vice president of Connected Vehicles and Mobility Services.
"They will be playing a critical role in this new era of tremendous change for the global auto industry," Redzic added.
With the aim of positioning themselves for the rise of autonomous driving, ride-sharing and other connected services, automakers from Toyota Motor Corp to General Motors have been investing in software firms and mobility start-ups. The traditional vehicle ownership model that has dominated the past century is facing tough competition and has been threatened by these tech based services.
A Renault spokeswoman said that the applications for the alliance's connected car service platform would be developed by Sylpheo. The alliance had been trying to push a plan of to hire 300 technology experts so that both are able to compete better in the fast-growing mobility services sector and the acquisition of the sft3ware firm was a part of that plan, she said.
Integration with autonomous driving technologies and these services would be done soon, the companies said. A technology that enables a vehicle to drive on single lane motorways and navigate congestion was launched by Nissan in July in the form of a suite of semi-autonomous driving functions in one of its Japanese minivan models.
By 2020, more than 10 vehicles with autonomous drive technology are planned to be launched by the two companies. Nissan is aiming to develop functions for full urban driving, including intersection turns, by 2020 but before that the company wants to at least start its autonomous multiple-lane driving functions, including lane changes, by 2018.
Apart from this big merge news this week there was some other notable acquisition this week itself. The South Island-based company's access into the Chinese market was enhanced as New Zealand approved the sale of a 50 percent stake in the country's largest meat processor Silver Fern Farms to a unit of China's Bright Food Group.

In a deal that will create one of the world's largest steel producers, China's Baosteel Iron and Steel will acquire its smaller debt-laden rival, Wuhan Iron and Steel, which was announced on Tuesday.
In the banking sector, Dutch daily Het Financieele Dagblad reported that CarVal Investors and Vesting Finance would buy the real estate financing unit, RNHB Bank of the Dutch cooperative bank Rabobank.