Autos

Nissan chief makes useful scapegoat for everyone

17 May 2019

Hiroto Saikawa may stay longer than expected at the $30 bln Japanese carmaker. Nissan is in shambles, but there's a case for letting him clean up the worst of it, then hiring a more charismatic successor. If he makes things worse, Renault has a stronger argument for merging.

Nissan tough-guy defence looks shaky

14 May 2019

The Japanese car giant resisting a merger with Renault said operating profit fell 44% this year, and predicted more pain ahead. CEO Hiroto Saikawa says this is "rock bottom", but the dismal outlook might see shareholders warm to a deal, or demand new management.

German $6 bln flop shows private equity’s dilemma

14 May 2019

Hellman & Friedman and Blackstone axed a takeover of listings group Scout24, after too few investors accepted. Rising valuations for peers like Auto Trader made the offer look stingy. Buyout groups want assets that promise growth, but frothy markets mean they’d have to overpay.

Nissan could easily tempt a bold activist

13 May 2019

The $31 bln carmaker is resisting deal talks with Renault. An arm’s-length arrangement favoured by boss Hiroto Saikawa will only weigh on Nissan’s value. Pushy investors have been chipping away at corporate Japan. One able to handle the politics could help make the case for M&A.

Toyota and Honda may want to rev up in China

8 May 2019

The Corolla maker’s operating profit grew a mere 2.8 pct in its latest fiscal year. Toyota’s outlook is also modest while rival Honda cut sales forecasts across the board. The Chinese market, though struggling now, could yet provide some refuge from Donald Trump’s trade warpath.

Musk’s roundabout finance runs on short sellers

7 May 2019

The Tesla CEO reduced some pressure by raising $2.7 bln of capital. But he relied heavily on convertible bonds, a vehicle dominated by the very traders he despises. And ditching long-held financial goals for robo-taxis bolsters the bears’ case against his electric-car outfit.

Tesla’s $2 bln capital raise repeats sins of past

2 May 2019

The electric-car maker’s issue of shares and convertible bonds will barely cover planned capital expenditure, let alone losses like the one it just reported. CEO Elon Musk is betting vehicle sales will rebound quickly. That’s the kind of hubris that put Tesla in its current fix.

VW’s reform drive needs more horsepower

2 May 2019

A year after taking the wheel, CEO Herbert Diess has canned a much-needed truck IPO and now expects 2019 operating profit will be at the lower end of his target range. The 82 billion euro carmaker won’t close the valuation gap with peers unless he gets the spinoff back on track.

Cox: Ghosn affair shoves Japan two steps back

2 May 2019

Harsh treatment by prosecutors has amazingly elicited some sympathy for the Nissan boss. Neither greed nor running the automaker like a deity is a crime. And the presumption of guilt on other matters is unseemly. It may scare off foreign executives just as Japan Inc goes global.

Subsidies gas up turnaround at Buffett-backed BYD

29 April 2019

The Chinese electric vehicle maker reported a stupendous 632 pct increase in first-quarter net profit. Around half of the boost came from generous government grants, which may not be sustained. Even so, investors have cause for cautious celebration.

Renault M&A plan is lesser of two evils for Nissan

26 April 2019

The Gallic carmaker is once again pushing for closer integration with its partner, Nikkei says. If the Japanese company were to win concessions, such as board seat parity or an equal stake in a merged group, a deal would make more sense than the current mess.

Ford zips out of the pits early

26 April 2019

The $37 bln automaker has raced past first-quarter estimates, thanks to pickup trucks and promised cost cuts. That suggests some of CEO Jim Hackett’s fixes are starting to gel. Now he needs demonstrable progress on electrification and autonomous driving too.

GM’s mostly female board shows it can be done

25 April 2019

The $56 bln automaker is set to have a majority of female directors, led by CEO Mary Barra. Gender diversity is improving more quickly in Europe thanks to legal mandates. But GM has shown there are enough qualified women to fill the jobs. It can lead the U.S. charge by example.

Invisible India exposes Uber’s growth dilemma

25 April 2019

The ride-hailing firm has retreated from China but the IPO prospectus mentions it twice as much as India. Uber has tried to check out of local food delivery. Now a top executive’s exit suggests the cash-sapping subcontinent’s future is far from certain.

Hyundai Motor’s U-turn may stutter in South Korea

25 April 2019

The $29 bln automaker's first quarter sparkled, good news after a loss the previous period. New models revved sales despite a slowdown in China and U.S. safety issues. Worsening economic conditions in its home market, however, could put this turnaround into a spin.

Tesla toils in first circle of ‘production hell’

24 April 2019

CEO Elon Musk’s 2017 lament about the Model 3 is taking wider hold. Demand has softened, the battery Gigafactory is underperforming, and capex and cash flow are falling. Yet Musk keeps promising new models and bumper sales, while changing tactics on the fly. The limbo can’t last.

Nissan earnings cut is one symptom of distraction

24 April 2019

The Japanese carmaker slashed its forecast annual operating income almost one third, a second cut in months. It blames warranty costs, weak sales, and the fracas over its ex-chairman. New woes make it harder for boss Hiroto Saikawa to steer through old ones.

Auto giants convert Chinese rivals into clients

23 April 2019

Volkswagen and Toyota share a new strategy in the world’s largest car market. In addition to designing own-brand electric vehicles, they are letting other automakers use their technology. It could be a clever way to leverage economies of scale, and hedge against competitive risk.

Elon Musk looks guilty of distracted driving

22 April 2019

Tesla’s CEO is talking up autonomous vehicles, days after offering investors more say and culling the board. But the $46 bln electric-car maker has more pressing concerns, including signs that demand and vehicle quality are falling – not to mention a dwindling pile of cash.

Short hit pollutes China’s second-hand car lot

17 April 2019

Uxin’s stock lost a third of its value after a research firm accused the newly U.S.-listed auto outfit of fudging numbers. True or not, fumes around an industry backed by Tencent and big buyout names are becoming noxious. It’s reason to steer clear of rivals waiting to go public.