Autos

Driverless Argonauts are all on valuation quests

12 July 2019

Ford and VW value their new autonomous-car joint venture at more than $7 bln. SoftBank and others peg GM’s similar division at $19 bln. Yet estimates on revenue and timing are all over the map. And Google’s Waymo is leading on several metrics. Their real worth could be anywhere.

Next BMW CEO’s best bet is greener cars

8 July 2019

The 44 billion euro automaker’s current boss Harald Krueger will in 2020 vacate one of the more attractive jobs in a tough industry. The company’s valuation and profitability put rivals to shame. To hold onto that lead, the new boss will have to focus more on electric vehicles.

Tesla’s return to growth is only half the ride

2 July 2019

Elon Musk’s $40 bln automaker enjoyed record sales last quarter. That will relieve cash-burn fears for now. But demand for high-margin cars has slumped, cheaper Model 3 versions are now available, capex needs a boost and tax breaks are shrinking. Turning a profit remains tough.

Emmanuel Macron’s sermon to Nissan is unhelpful

26 June 2019

France’s president is calling for more integration with Renault. The Japanese automaker’s shareholder meeting this week exposed deepening suspicions of the alliance, with CEO Hiroto Saikawa threatening to upend it. Paris will serve Renault better by keeping quiet.

Daimler profit crash gives new CEO cost-cut fuel

24 June 2019

Swede Ola Kaellenius has started his turn driving the $60 bln Mercedes-Benz owner with a profit warning. Shareholders will be exasperated by the group’s third such shock in a year. But bad news could make it easier for Kaellenius to make the case for much-needed savings.

UK $2.4 bln car-sale LBO has a quiet engine rattle

20 June 2019

Private equity firm TDR may buy used-car auctioneer BCA. Its experience in the sector may give it an edge over Apax, which walked away from the group last year, and returns look decent if Europeans sell more motors online. The longer-term risk is that fewer punters own cars.

Toyota uses financial heft to hedge green bets

17 June 2019

The $176 bln behemoth is spreading clean energy investments across pure electric cars and hybrids as well as hydrogen, partnering with rivals like Subaru to reduce costs. The company’s sheer scale makes the strategy feasible, but Nissan’s more conventional solution is a threat.

VW $17 bln IPO gets reform drive back on the road

14 June 2019

The German carmaker is offering a smaller slice of its truck unit at a lower valuation, after delaying the float in March. It’s a sign that CEO Herbert Diess wants to simplify the group even if proceeds are less than hoped. That’s encouraging for VW’s often-ignored investors.

Viewsroom: When dealmaking gets difficult

13 June 2019

Raytheon and United Technologies’ planned $114 bln tie-up raises questions about strategy, cost cuts and executive overreach. It’s prompted their shares to tank and activist Bill Ackman to oppose it. And Fiat Chrysler and Renault’s mooted merger has crashed. Can they salvage it?

What’s under Renault’s hood?

13 June 2019

Appraise the French carmaker's parts to decide whether Fiat Chrysler's merger offer was stingy or fair.

Fiat’s Renault offer was fairer than it looked

13 June 2019

Some investors complained a 15 bln euro merger proposal from the Italian-American group put a negative value on the French carmaker’s core business. Use more realistic valuations for Renault’s parts, though, and the price looks better. Reviving the deal also unlocks huge savings.

Renault-Nissan clash exposes flaws in Fiat deal

10 June 2019

The French carmaker has threatened to block its Japanese ally’s governance overhaul, while its state shareholder might sell. The contrasting manoeuvres may help revive a merger with Fiat Chrysler. But evidence of messy governance is more likely to put off a potential partner.

Fiat-Renault deadlock is opportunity for Peugeot

6 June 2019

The 33 bln euro auto marriage stalled after French state meddling. Fiat might find an easier alternative with Carlos Tavares’ carmaker, given its historically looser government relations and 9 bln euro cash pile. It might also allow a cleaner exit for Fiat owner John Elkann.

Fiat-Renault M&A collapse creates losers all round

6 June 2019

The Italian-American carmaker withdrew a merger offer after the French state sought to delay a decision. The companies lose 5 bln euros of synergies, while Renault and Nissan remain stuck in a frayed alliance. Paris has flubbed an opportunity to show its pro-business credentials.

Fiat’s French appeasement game is means to an end

3 June 2019

Chairman John Elkann is mulling concessions to get the French state to greenlight the $35 bln Renault merger. A board seat for Paris and some cash shouldn’t risk planned cost savings, or Nissan’s assent. It’s a small price to pay for first-mover advantage in car consolidation.

Renault-Fiat merger savings matter more than price

31 May 2019

The French carmaker’s board may feel a proposal by its Italian-American rival takes advantage of a depressed share price. The bigger prize, though, is synergies worth 50% of combined operating profit. If those are credible, Renault should not quibble too much about valuation.

Viewsroom: A new game of carmaker matchmaker

30 May 2019

Fiat Chrysler spurned Peugeot by offering to merge with France’s Renault, which is itself joined to Nissan. How will the pairings play out, and what does it mean for the automotive sector? Plus: Why fossil-fuel giants like BP are painting themselves a pale shade of green.

Cox: Merger of equals is French expletive

30 May 2019

Fiat and Renault hope to succeed where other deals billed as partnerships failed to deliver on promises to France. From LafargeHolcim and Alcatel-Lucent to TechnipFMC and EssilorLuxottica, hopes have been dashed. Proving the exception requires an understanding of those failings.

Arduous road awaits refueled Chinese used-car app

29 May 2019

Uxin is issuing $230 mln of convertible bonds, including to existing investors TPG and Warburg Pincus. It follows a 70% loss in market value since last year's IPO. A short attack, China’s slowdown and generous terms make it hard to see the deal as accurately calling a bottom.

Fiat-Renault deal leaves Peugeot in the M&A dust

28 May 2019

The $21 bln auto group looks strategically boxed in now its Italian-American suitor may pair with French rival Renault. CEO Carlos Tavares could try Indian-owned Jaguar Land Rover or General Motors. Yet both Plan Bs lack the $6.3 bln of cost savings he’s missed out on with Fiat.