Autos

Peugeot needs FCA more than the other way around

25 March 2019

Carlo Tavares is reading from Sergio Marchionne’s script. A $45 bln merger would, in theory, deliver massive cost savings which could be invested in new technology. But politics makes that hard. And while PSA would gain a U.S. foothold the Agnellis would be pulled back to Europe.

Viewsroom: German bank M&A’s questionable logic

21 March 2019

Putting Deutsche and Commerz together might create a national banking champion. A more likely outcome, though, would be a poorly performing behemoth. Meanwhile, Volkswagen boss Herbert Diess commits the mother of all CEO gaffes. Plus: sizing up a Chinese housing unicorn.

BMW-Daimler: a more logical German M&A champion

20 March 2019

Berlin wants a merger of Deutsche Bank and Commerzbank to protect two flagship companies. Its second- and third-biggest carmakers would be a better pair, and might actually strengthen each other. The risk is that shareholders and policymakers only realise when it’s too late.

Chinese car lender’s IPO drives a hard bargain

19 March 2019

Dongzheng Automotive Finance could be worth $1.4 bln after going public, valuing the company at a big premium to rivals. Its fast growth, high returns and luxury-vehicle focus may justify that. But it’s shifting into new markets and has yet to face the rough ride of a downturn.

Volkswagen CEO’s Nazi pun constitutes peak gaffe

15 March 2019

Herbert Diess apologised for evoking a Third Reich slogan via the pun “EBIT macht frei”. Given the gravity of the subject and VW’s dark history, it’s hard to imagine a bigger self-own. In a competitive field of foot-in-mouth bosses, Diess has effortlessly claimed pole position.

Self-driving trucks expose Chinese tech gap

15 March 2019

Mainland autonomous truck startup TuSimple is hitting the U.S. road, challenging the likes of Waymo and Volvo. Despite support from Beijing, policy contradictions have reduced China’s attractiveness to its own companies, making it a laggard in the self-driving race.

Elon Musk’s balancing act requires capital support

14 March 2019

Tesla’s latest SUV extends its line but threatens to dent Model 3 sales and whack earnings. It’s a fresh complication for a CEO fighting with the SEC and flip-flopping over store closures. A cash injection, say by selling a stake in its self-driving unit, could smooth the ride.

Renault-Nissan love-in swerves main bumps in road

12 March 2019

The French carmaker has agreed its chairman will no longer chair its Japanese partner. That’s a step forward from the Carlos Ghosn era. But mutual talk of equality is no substitute for solving the alliance’s fundamental problems – not least its suboptimal cross-shareholdings.

Nio’s right place, right time may be short-lived

6 March 2019

Tesla’s Chinese rival is revving up, delivering 11,348 units in its first year. Nio bucked a slowdown in the world’s largest car market thanks in part to sparse competition for luxury electric vehicles. But its net loss nearly doubled, and new rivals are hitting the road in 2019.

Elon Musk fires up engine for short-seller battle

28 February 2019

Tesla’s CEO is finally selling Model 3s for $35,000, and shutting most of the firm’s stores to pay for it. So it will soon be clear whether he has built the profitable mass-market electric-car maker he’s long promised, or a business fast running out of juice as his foes contend.

Driving hard bargain could backfire on Hyundai

27 February 2019

The Korean conglomerate's auto-parts unit has offered less than half the $2.2 bln dividend wanted by pushy Elliott. Meanwhile, Hyundai's carmaker rejected another of the activist's proposals. Stingier options may cost it investor support when it comes to a broader restructuring.

Musk might just talk himself into a Tesla buyout

26 February 2019

The electric-car maker’s CEO and the SEC are in battle again over a recent tweet. At worst, the watchdog could force him out. But what then? Tesla’s stock would tumble, putting the firm in play – and potentially letting Musk revive the takeover idea that first got him in trouble.

Cruising Peugeot risks running out of gas

26 February 2019

The French group’s shares are the best-performing of European carmakers in the past year, helped by CEO Carlos Tavares’ swift turnaround of Opel-Vauxhall. Yet his new targets are modest, and a push into the tough U.S. market could flop. Peugeot’s premium valuation may not last.

Tesla board should brace for Elon Musk impact

26 February 2019

The electric-car maker's CEO mocked the SEC after it asked a court to hold him in contempt for a production targets tweet. His flouting of rules and accuracy has become a serious liability. It’s time for directors to plan an emergency route in case Musk's power completely drains.

VW’s shares are priced for EV self-destruction

22 February 2019

Likely cash flows to 2025 almost justify the carmaker’s 75 bln euro market value. Investors either think it’ll be worthless after then, or expect cratering combustion-engine sales and wasted investment in electric vehicles. Economies of scale mean that could be too pessimistic.

Viewsroom: Brexit breakups

21 February 2019

Foreign carmakers are closing some UK plants as lawmakers defect from both the Labour and ruling Tory parties. How will this affect the looming deadline to quit the EU? Plus: Vegan diets are more than a fad.

Nissan would be better off with its own chairman

21 February 2019

A panel enlisted by the Japanese carmaker opposes replicating the corporate governance model used under Carlos Ghosn. Uniting with Renault makes sense in the long run, but for now two separate board chiefs will be more effective at cleaning house and rebalancing the relationship.

Brexit paints go-slower stripe on UK car industry

19 February 2019

Plant closures like Honda’s in Swindon raise the spectre of decline for Britain’s auto sector. Yet the underperforming site always looked vulnerable. The bigger test is whether global carmakers want to build electric vehicles in the UK. Brexit will prove a huge deterrent.

German $6 bln non-LBO is sign of lean buyout times

15 February 2019

Hellman & Friedman and Blackstone are buying classifieds group Scout24. They can’t pile much debt on it, and the return looks way off the level investors usually expect. With buckets of cash, private equity needs to do deals. Buying fast-growing targets offer a little security.

Amazon primes delivery of its vehicular future

13 February 2019

The $820 bln retailer may take a stake in electric-truck maker Rivian. That’d be its third mobility play this year. It’s unlikely Amazon aims to build cars. Instead, along with its robotics and cloud efforts, such investments should allow it to tackle mounting logistics concerns.