Autos

Elon Musk, investors share a rare dose of realism

22 September 2020

The Tesla boss’s plan to slash battery costs and ramp up sales put the stock into a 12% reverse. A three-year time frame jarred, and he oversold the event too. Musk’s pitches usually prompt an acceleration. It’s a welcome sign that CEO and shareholders are toning down some hype.

Founder’s exit shines headlights on Nikola backers

21 September 2020

Trevor Milton is stepping down at the "pre-revenue" zero-emissions vehicle maker. Investors have nixed almost half the company's worth since fraud claims surfaced. Proving Nikola is worth its remaining $9 bln value falls on partners like GM and CNH and on new Chair Steve Girsky.

Icahn can’t push VW too much on Navistar bid

17 September 2020

The U.S. truck company in which the activist holds 17% wants Volkswagen to raise its $4.3 bln bid. Savings potentially worth almost as much mean the automaker run by Herbert Diess can pay more. But falling sales and cash outlays mean shares could fall sharply if the Germans walk.

Fiat-Peugeot deal rejig removes car merger angst

15 September 2020

The Jeep maker’s investors will get about half a jumbo dividend expected via a tie-up with the French group, but more savings and part of Faurecia. The new entity’s balance sheet will now be stronger. And lingering uncertainty about the deal happening should evaporate.

Corona Capital: Peloton, New York City

11 September 2020

Concise views on the pandemic’s corporate and financial fallout: Peloton is on a tear with earnings exceeding expectations but it may burn out soon; more than 150 business leaders write to Mayor Bill de Blasio over the Big Apple’s deteriorating conditions.

S&P 500 gatekeepers are the new active investors

10 September 2020

The recent decision not to include $341 billion automaker Tesla in the U.S. benchmark highlights subjective rules about factors like profitability. Inconsistency over voting rights keeps major players in tech and finance out, and others in. It's hardly passive investing.

VW hands Carl Icahn muted Navistar victory

10 September 2020

The activist managed to push the German carmaker’s truck division to raise a cash bid for its U.S. rival by 23%. Given the sector faces a deep market decline, it may be a good time to exit. Still, the scale of VW’s potential synergies mean it could afford to give further ground.

Nikola deal electrifies GM’s dilemma

8 September 2020

Both expect more than $4 bln in benefits from the Detroit automaker taking an 11% stake in the electric-truck startup. But investors are more convinced by Nikola’s share. Dissatisfaction with traditional players is part of it. But so is GM’s decision to cannibalize itself.

Giants risk overloading China’s growth boards

2 September 2020

Carmaker Geely wants to raise $3 bln on Shanghai’s hot STAR exchange. Deep-pocketed Dongfeng Motor and Ant are also chasing stratospheric valuations on venues built for earlier-stage innovative firms. This dilutes Beijing’s goal of providing much-needed capital to startups.

Tesla shows rare modesty with $5 bln share sale

1 September 2020

Elon Musk’s $464 bln carmaker is set to raise more equity in one shot than it ever has. But it will only just tip the firm’s balance sheet into net cash, while the pandemic has made sales more erratic. With Tesla’s market value up almost sixfold this year, Musk could raise more.

China’s new electric-car IPO is well-timed

27 August 2020

Xpeng priced its U.S. IPO above a range, valuing it at nearly $11 bln. Tesla and local rivals deliver more units in China. But the Alibaba and Qatar-backed maker of affordable cars can speed production by bringing manufacturing in-house. It tees up a fast ride for EV enthusiasts.

German union will get half its four-day-week wish

26 August 2020

IG Metall wants to save jobs by cutting workers’ hours, but without proportional pay cuts. Shorter workweeks make sense for employers, staff and the economy. The per-hour wage hike only suits employees. Dire growth prospects give bosses the upper hand in negotiations.

India’s auto royalties deserve scrutiny

19 August 2020

Officials want carmakers like $28 bln Maruti Suzuki to reduce fees paid to foreign partners for brands and know-how. Shareholder approval for such payments can be tightened up too. But India’s drive for more domestic R&D and self-sufficiency in the sector will be a slow one.

Knorr-Bremse makes case for driverless company

13 August 2020

The German brakes maker has lost its second CEO in less than two years. The shadow of billionaire majority shareholder Heinz Hermann Thiele looms too large. But Knorr-Bremse’s market dominance and lack of major rivals mean there’s little urgent need to find a replacement.

Continental spinoff can trigger overdue auto M&A

5 August 2020

The $20 bln Frankfurt-listed mobility company wants to separate its engine division, which might be worth $4 bln. That may hasten a union with Schaeffler, in which the eponymous German family also holds a big stake. Faced with a downturn, rivals like Valeo could soon follow suit.

Ford’s new CEO needs deft maneuvering skills

4 August 2020

The $27 bln carmaker has promoted Jim Farley to replace Jim Hackett, the second boss in six years to leave after underperforming peers. Farley will have to cut costs while also trying to speed up the company’s investments in electric and self-driving tech. That’s no easy task.

Corona Capital: PizzaExpress, Aerospace pain

4 August 2020

Concise views on the pandemic’s corporate and financial fallout: The UK restaurant chain’s restructuring is not that tasty a meal for creditors; Airplane-parts maker Spirit’s reliance on Boeing’s 737 MAX has it heading into worse turbulence.

Corona Capital: Ford narrows the gap

30 July 2020

Concise views on the pandemic’s corporate and financial fallout: The Detroit automaker put in a better second-quarter performance than expected. That’s good news for under-pressure CEO Jim Hackett – and allows Ford to close some of the distance to rival GM.

VW’s China acceleration leaves Renault in the dust

30 July 2020

An uptick in Middle Kingdom car sales helped Volkswagen boss Herbert Diess restate a pledge to make an annual profit, following a half-year loss. By contrast, the French carmaker is losing money and market share. New Renault CEO Luca de Meo’s cost-cutting plan needs more fuel.

Elon Musk’s supply-chain dream might come true

29 July 2020

The Tesla boss says the company is willing to provide rivals with batteries, powertrains and self-driving software. That may appeal to startups and even some traditional automakers. As with other Musk projects, though, Tesla-as-a-parts-service will take time to become reality.