Volkswagen nixes share sale to Abu Dhabi 15 Sep 2004 Their predictable failure to agree on price torpedoes the carmaker's plans to fund a E2bn car leasing deal with equity. It now has no choice but to fund the purchase internally, and this means adding to VW s huge debt pile.
VW needs skill to defuse pay row 19 Aug 2004 The German carmaker can t afford to give in to unions' pay demand when it is trying to push through badly needed costs cuts. Daimler and Siemens have already convinced staff to work longer hours. VW, in a weaker negotiating position, will need skill to do the same.
Brandes swivels guns towards Volkswagen 10 Aug 2004 The value fund manager has been buying the carmaker s shares when others have been selling their s. The reason may be that it wants to challenge the company s flawed strategy.
Mitsubishi provides a toxic happy meal 6 Aug 2004 By issuing toxic convertibles as part of its rescue package, the Japanese carmaker gave hedge funds a free ride. This may have been the company s only way to raise badly needed cash quickly. But it was really costly.
Renault weans itself off Nissan dependency 28 Jul 2004 Nissan s share in the French carmaker s profits is falling. Renault s European business is recovering. But this is not reflected in Renault s valuation. Investors could be more generous.
Peugeot pins hopes on new models 27 Jul 2004 Success isn't certain in the competitive European market. But it's encouraging for Peugeot that Renault's and VW's new cars are struggling. Of course, there's always the risk that Peugeot's new models will flop too. But at least its finances are sound and it is cheap.
European truck makers thwart consolidation 26 Jul 2004 Although there are too many competitors fighting for a atill small market, no one will take the first step. MAN's refusal to divest its trucks unit is just the latest example.
Fiat’s car business hits a pothole 26 Jul 2004 Second quarter losses at the auto arm were worse than expected, although the group result was saved by other units. Fiat's new CEO still thinks he can deliver a racy turnaround. But it is worrying that many targets have had to be pushed back.
DaimlerChrysler handles labour dispute skilfully 19 Jul 2004 By agreeing to take a pay cut, the automotive group s executives have defused the charge that they are fat cats. Daimler isn t threatening to shift jobs abroad so it can t be accused of being unpatriotic. This may be a model for other German companies.
Renault shares gain from Ghosn effect 7 Jun 2004 The French carmaker's market capitalisation now exceeds the value of its 44% stake in Nissan. This may be related to the impending return of Carlos Ghosn, who turned around Nissan, to Renault.
Fiat palace coup fails 31 May 2004 His resignation is bad news for Fiat s investors. While there may have been doubts about his turnaround plan, it did seem to be delivering. Giuseppe Morchio, the carmaker s CEO, tried to seize power following the death of chairman Umberto Agnelli. But he overplayed his hand.
Agnelli illness may herald Fiat changes 12 May 2004 There are two possible changes if Umberto Agnelli's illness leads the family to step back from the Italian conglomerate. Its banks are more likely to convert their bonds into shares. And the chain through which the family controls Fiat may be shortened.
Schrempp gets some help from his friends 28 Apr 2004 The German press suggests he might be fired. Don't believe it, given the interlocking web of interests at Daimler. For all the talk about AngloSaxon governance, Deutschland AG is still alive and well.
Daimler walks away from Mitsubishi 23 Apr 2004 The board may finally be standing up to its imperial boss, Juergen Schrempp, who engineered this and the valuedestructive Chrysler deal. Ending financial support for Mitsubishi is a de facto acknowledgement that the original investment was a big mistake.
Daimler prepares big Mitsubishi cash injection 13 Apr 2004 Its initial investment in the Japanese car group has been a disaster. Now to remedy the situation, it will reportedly sink in another $4bn. That is, at best, a big gamble. It is remarkable that Schrempp, the architect of this failed strategy, is still in situ.
Fiat investors get ahead of themselves 27 Feb 2004 The ailing car manufacturer has made some progress in a pretty dire environment. But this is only the beginning. Yet Fiat s shares, which rose 10% over the last month, already discount that the relaunch plan will deliver on its promises.
Volvo faces Scania deadline 2 Feb 2004 Five years since it acquired a 31% stake in its Swedish rival, Volvo is still struggling to interest buyers. But instead of demerging Scania, and potentially losing any control premium, why not roll the shares into a new company and spin that off?
Formula One resurrects plans for IPO 19 Dec 2003 No sooner has the motor racing company staved off collapse than its shareholders are sniffing around for an exit. But plenty more things need to happen before the company is in any shape to go public.
When is a merger a takeover? 11 Dec 2003 The question, at the heart of a battle between Daimler and Kerkorian, sheds light on the many mergers of the 1990s. Not that it matters much in Daimler's case whether it was a merger or takeover, Daimler should never have joined with Chrysler.
Formula One sees peace in our time 8 Dec 2003 Bernie Ecclestone and the carmakers have decided that it is better to cut a deal than go their separate ways. What isn't clear yet is who will foot the bill for the peace: Ecclestone or the banks who are his fellow investors in F1.