Autos

Uber hops in driving seat to serve ad firms notice

20 September 2017

The ride-sharing firm sued a digital advertising agency claiming fraud and seeking some $40 mln in damages. Clients rarely, if ever, take Madison Avenue to court. Already under pressure to prove their value, the case is another sign ad middlemen need to clean up their act.

Foreign automakers will pay for Chinese EV drive

19 September 2017

China’s pledge to scrap gas guzzlers looks serious. A new quota system will force motor-makers to sell electric vehicles. Those who miss targets must buy credits from battery-powered rivals. Home-grown brands are likely to reap the benefits, at the expense of global giants.

Pirelli IPO leaves long-term questions unanswered

18 September 2017

The Italian tyremaker, sold to ChemChina in 2015, is seeking to raise up to $4 bln in a listing. A shift towards luxury tyres has boosted sales and margins. But growth targets look ambitious and there is no clarity on who will succeed long-term boss Marco Tronchetti Provera.

AI is the big driver of SoftBank’s Uber move

15 September 2017

A mooted $10 bln investment in Uber would leave Masayoshi Son’s group with stakes in most of the world’s big ride-hailing firms. It’s a huge sum, even if SoftBank buys in at a big discount. The strategy reflects Son’s belief in the disruptive power of autonomous driving.

Pirelli’s mooted IPO valuation looks overinflated

5 September 2017

The Italian tyremaker plans to relist. Pirelli’s high-end business may deserve a premium to peers, but an estimated enterprise value of 12 billion euros, far above what owner ChemChina paid in 2015, looks optimistic. High debt and complex ownership may also spook investors.

German car industry may become Merkel’s nemesis

30 August 2017

Re-election in September will lumber Chancellor Angela Merkel with the challenge of managing a crisis that is looming in the auto sector. The fight for clean air in cities could accelerate the shift to electric vehicles and jeopardise up to a tenth of Germany’s industrial jobs.

Water woes may leave green-car hopes high and dry

28 August 2017

Ford is the latest to ramp up electric-vehicle production with a deal in China. But the industry relies heavily on the Democratic Republic of Congo for a crucial battery material. Drought, abysmal infrastructure and conflict could put ever-increasing supply needs at risk.

Viewsroom: Fiat Chrysler’s painful choices

24 August 2017

Great Wall Motor wants to buy Jeep. That’d leave the Italian-American carmaker cash rich but devoid of profit in a fast-changing industry. Meanwhile, Uber tries to find a silver lining to the cloud its drivers are under. Plus: what makes China’s unicorns a different breed.

Uber could help itself by giving drivers equity

23 August 2017

The ride-hailing firm is considering handing them stock. They aren't employees, so the SEC would have to agree. The plan could boost Uber's damaged brand and help keep drivers. Other gig-economy workers might gain, too. But existing irate investors could present a roadblock.

Jeep sale would leave Marchionne nowhere to hide

22 August 2017

The Fiat Chrysler CEO advocates using M&A to stop carmakers wasting precious capital. Selling the company's top brand to China's Great Wall - a long shot politically - might raise $23 bln. But it would leave an emaciated rump and set up Marchionne’s last lap to be a dismal one.

Holding: The law rides shotgun on Uber obfuscation

21 August 2017

Whether the ride-hailing app fixed prices may remain a secret after a court sent a case to arbitration. It’s the same deal on whether drivers were stiffed on expenses or female workers sexually harassed. It’s tough to make Uber fess up when it's allowed to operate in the shadows.

Fiat Chrysler would rev up China’s Great Wall

21 August 2017

The $19 bln Italian group has bid interest from the Chinese carmaker. Just as Geely’s takeover of Volvo helped it revamp designs, Great Wall could benefit from Fiat’s knowhow, especially at Jeep. But this could seriously stretch the buyer’s finances and management capacity.

Geely drives bumpy road toward global fame

16 August 2017

The firm that bought Volvo could become China’s first truly international carmaker. That hope, plus surging domestic sales, has sent shares in Geely's listed arm up over 230 pct in a year. But the lure of overseas glory could distract. This company needs to keep winning at home.

Take the money and run is new Uber Benchmark

15 August 2017

The ride-hailing firm is beset by controversy, managerial turmoil and huge losses, despite its market dominance. Early investor Benchmark may be loath to give in to demands to sell its 13 pct stake. But it’d restore some stability and let the VC firm make some 200 times its money.

Marchionne’s Maserati spinoff lacks traction

15 August 2017

Fiat Chrysler’s boss is considering selling the group’s premium brands, according to a report. He staged a similar trick with the firm’s high-end Ferrari brand. Yet Maserati and Alfa Romeo are tiny and need Fiat’s production lines. Staying part of a larger group makes more sense.

Politics aside, Chinese bid for FCA has some merit

14 August 2017

A report Fiat Chrysler has snubbed a lowball bid from a mainland carmaker sent shares soaring. In theory, a combination could add up industrially, and perhaps financially. Trump would probably freak. Yet it might offer the best chance of preserving American jobs.

China’s car JVs make for an easy trade sacrifice

14 August 2017

Trump plans a probe into a requirement that American companies hand over tech secrets for market access. Amid the escalating battle, a painless concession would be to scrap a rule forcing U.S. automakers to partner locally. Chinese brands need export markets more than free IP.

Union throws wrench in self-driving works

11 August 2017

The Teamsters have convinced U.S. lawmakers to exempt trucks from a bill allowing more autonomous vehicles on the roads. Granted, 3.5 mln jobs are at stake. But as Tesla joins Daimler and others in the big-rig tech race, it’d be smarter to prepare haulers for a career shift.

Uber investor’s lawsuit pounds on founder power

10 August 2017

Venture-capital firm Benchmark is suing the ride-hailing app's deposed boss Travis Kalanick, accusing him of entrenching himself on the board. The rare imbroglio for clubby Silicon Valley comes as stock indexes shun dual-class shares. Momentum is mounting for better governance.

Glencore’s debt purge creates enviable problems

10 August 2017

Surging commodity prices are helping Chief Executive Ivan Glasenberg to slash debt faster than planned and restore profitability. That gives the mining giant scope to hand more money back to investors or make bigger bets on growing demand for resource-hungry electric vehicles.