Autos

VW’s new boss has $184 bln of low-hanging fruit

26 April 2018

CEO Herbert Diess kick-started an overhaul of the carmaker. Cutting jobs will be hard given VW’s union-heavy board. But by slashing the group’s excessive spending on materials like steel, Diess could squeeze suppliers instead. That would make a big difference to its thin margins.

Ford finally gives GM something to think about

25 April 2018

The $43 bln automaker is scrapping most U.S. cars to focus on SUVs and trucks. That'll free up money and managers to tackle EV and self-driving challenges. It could leapfrog GM, which ditched its unprofitable Europe unit but still has plenty of unroadworthy models and divisions.

Peugeot investors jump the gun on Opel turnaround

24 April 2018

The French carmaker’s shares trade at a premium to European peers despite its below-average operating margin. Investors are already counting on a turnaround at Opel, the loss-making business bought from GM last year. A German labour dispute means there’s room for disappointment.

VW truck IPO may squander $20 bln opportunity

19 April 2018

The German carmaker might list its trucks and buses unit next year. The flotation could boost the group’s shares by nearly a fifth, if the market values the division more highly than the rest of it. Yet a partial listing and Volkswagen’s messy governance would limit the upside.

Tesla in pole position to win U.S.-China trade war

17 April 2018

Beijing has set deadlines to lift JV rules for foreign automakers. Ford and Daimler will be pleased, but Elon Musk's embattled $50 bln electric-car maker should benefit most. Freed to enter the biggest market without having to share technology, Tesla's risky strategy may pay off.

Icahn will need to work to extend winning streak

16 April 2018

The investor is selling Tropicana, the casino he plucked out of bankruptcy, for $1.85 bln. It follows last week’s sale of Federal-Mogul to Tenneco, and Volkswagen is knocking on Navistar’s door. A bull market has given Icahn a hot hand, but it makes deploying the cash a challenge.

Volkswagen overhaul may give Carl Icahn a lift

16 April 2018

New CEO Herbert Diess is mulling an IPO for its truck unit. It’d be a smoother ride if VW boosts its minority holding in U.S. peer Navistar to a controlling stake. Icahn and two other pushy investors own 40 pct of the $3.9 bln outfit - and are likely to want a hefty premium.

VW changes boss to better effect than Deutsche

13 April 2018

Both companies replaced their boss mid-term. The automaker also unveiled management changes to help reduce costs and is preparing its trucks business for a potential listing. Volkswagen’s messy governance endures, but unlike Deutsche, its strategy has a better chance of success.

Trump trade war risks European carmaker backfire

10 April 2018

BMW and Daimler sell a surprising number of American-made vehicles in China. Were the U.S. president’s tariff-war rhetoric to become reality, carmakers could shrink stateside production. If Trump wants to keep rather than lose jobs, he should seize Beijing’s latest olive branch.

New VW boss would only part-solve its problems

10 April 2018

The German carmaker may replace CEO Matthias Mueller after just two-and-a-half years. Probable successor Herbert Diess brings a welcome outside perspective having only joined 2015. His difficulty will be getting the conservative board’s approval for radical moves like spinoffs.

Tenneco and Icahn pull a mini DowDuPont

10 April 2018

The U.S. auto-parts maker is paying $5.4 bln including debt for Federal-Mogul, owned by the investor’s listed entity. The plan is to break the merged company into two, boosting the overall value. Shareholders shoulder risk when deals have several steps. But the logic holds up.

Aston Martin can race Ferrari in IPO test

9 April 2018

James Bond’s carmaker is eyeing a listing six years after an emergency pit stop. Rich margins and racy growth make it a close match for the prancing horse, justifying a $7bln valuation, and sixfold return for rescuer Andrea Bonomi. But Ferrari’s scarcity premium could be dented.

Canines chase cars, except in case of eHi’s buyout

9 April 2018

The Chinese auto-rental agency has been a dog since its IPO in 2014. While travel is growing in the People’s Republic, that hasn’t translated into a robust business. Still, compared to similar species like Car Inc, eHi's public owners will be fortunate to exit free of bite marks.

Viewsroom: Spotify leads Wall Street on IPO dance

5 April 2018

The music-streaming service enjoyed a mostly smooth stock-market debut despite largely bypassing investment banks. Ultimately, though, business success, not IPO hype, is what counts. Plus: Regulators and automakers are sparking up an altogether too cozy relationship.

China brings a gun to its U.S. trade gunfight

4 April 2018

Beijing proposed duties on $50 bln of American exports hours after the U.S. said it would tax the same value of Chinese exports. Doing so may hit China’s economy, but that’s the point. The readiness to go toe-to-toe implies Trump’s trade war will be neither good nor easy to win.

Elliott targets right pressure points at Hyundai

4 April 2018

The feisty U.S. hedge fund has waded into a restructuring at the South Korean conglomerate. Elliott’s three-part, $1 bln investment seems focused on the aspects of the overhaul that are most likely to generate controversy, and where it could rally support from other investors.

U.S. emissions watchdog hands keys to car industry

3 April 2018

EPA boss Scott Pruitt plans to ditch Obama-era rules mandating much greater fuel efficiency. He says the move will enhance affordability, but that’s a foil for putting industry concerns first. As finance has shown, regulators who kowtow to those they oversee can cause a crash.

Tricky Renault-Nissan deal would be rewarding

29 March 2018

The French and Japanese groups chaired by Carlos Ghosn may merge to create a carmaker that trades as a single stock. The Gallic state, which owns 15 pct of Renault, would put up roadblocks. But after 19 years of cooperation, margins are low enough to make the union worth a try.

Uber races towards IPO with Southeast Asian deal

26 March 2018

The U.S. ride-hailing giant is exiting another cut-throat market. It will hand its regional business to Grab, a $6 bln local rival, and take 27.5 pct of the enlarged group. This is a sensible step to prepare Uber for public life – provided Grab can hold onto its leading position.

Self-driving cars may find legal lesson in pharma

22 March 2018

Autonomous vehicles should make road deaths like the one involving an Uber prototype a rarity. Paradoxically, as drugmakers found with vaccines, mishaps may raise legal costs and drive companies out of the market. Limits on suits and a compensation fund balanced risk and reward.