Cox: Ghosn affair shoves Japan two steps back 2 May 2019 Harsh treatment by prosecutors has amazingly elicited some sympathy for the Nissan boss. Neither greed nor running the automaker like a deity is a crime. And the presumption of guilt on other matters is unseemly. It may scare off foreign executives just as Japan Inc goes global.
Subsidies gas up turnaround at Buffett-backed BYD 29 Apr 2019 The Chinese electric vehicle maker reported a stupendous 632 pct increase in first-quarter net profit. Around half of the boost came from generous government grants, which may not be sustained. Even so, investors have cause for cautious celebration.
Renault M&A plan is lesser of two evils for Nissan 26 Apr 2019 The Gallic carmaker is once again pushing for closer integration with its partner, Nikkei says. If the Japanese company were to win concessions, such as board seat parity or an equal stake in a merged group, a deal would make more sense than the current mess.
Ford zips out of the pits early 26 Apr 2019 The $37 bln automaker has raced past first-quarter estimates, thanks to pickup trucks and promised cost cuts. That suggests some of CEO Jim Hackett’s fixes are starting to gel. Now he needs demonstrable progress on electrification and autonomous driving too.
GM’s mostly female board shows it can be done 25 Apr 2019 The $56 bln automaker is set to have a majority of female directors, led by CEO Mary Barra. Gender diversity is improving more quickly in Europe thanks to legal mandates. But GM has shown there are enough qualified women to fill the jobs. It can lead the U.S. charge by example.
Invisible India exposes Uber’s growth dilemma 25 Apr 2019 The ride-hailing firm has retreated from China but the IPO prospectus mentions it twice as much as India. Uber has tried to check out of local food delivery. Now a top executive’s exit suggests the cash-sapping subcontinent’s future is far from certain.
Hyundai Motor’s U-turn may stutter in South Korea 25 Apr 2019 The $29 bln automaker's first quarter sparkled, good news after a loss the previous period. New models revved sales despite a slowdown in China and U.S. safety issues. Worsening economic conditions in its home market, however, could put this turnaround into a spin.
Tesla toils in first circle of ‘production hell’ 24 Apr 2019 CEO Elon Musk’s 2017 lament about the Model 3 is taking wider hold. Demand has softened, the battery Gigafactory is underperforming, and capex and cash flow are falling. Yet Musk keeps promising new models and bumper sales, while changing tactics on the fly. The limbo can’t last.
Nissan earnings cut is one symptom of distraction 24 Apr 2019 The Japanese carmaker slashed its forecast annual operating income almost one third, a second cut in months. It blames warranty costs, weak sales, and the fracas over its ex-chairman. New woes make it harder for boss Hiroto Saikawa to steer through old ones.
Auto giants convert Chinese rivals into clients 23 Apr 2019 Volkswagen and Toyota share a new strategy in the world’s largest car market. In addition to designing own-brand electric vehicles, they are letting other automakers use their technology. It could be a clever way to leverage economies of scale, and hedge against competitive risk.
Elon Musk looks guilty of distracted driving 22 Apr 2019 Tesla’s CEO is talking up autonomous vehicles, days after offering investors more say and culling the board. But the $46 bln electric-car maker has more pressing concerns, including signs that demand and vehicle quality are falling – not to mention a dwindling pile of cash.
Short hit pollutes China’s second-hand car lot 17 Apr 2019 Uxin’s stock lost a third of its value after a research firm accused the newly U.S.-listed auto outfit of fudging numbers. True or not, fumes around an industry backed by Tencent and big buyout names are becoming noxious. It’s reason to steer clear of rivals waiting to go public.
Alliances leave Uber tangled in competitive knots 16 Apr 2019 The ride-hailing giant's IPO papers detail the deals struck when it pulled out of cutthroat markets like China, taking stakes in homegrown rivals instead. The pacts look asymmetrical, tying up mostly Uber. As $65 bln Didi and others expand abroad, the snarl only gets worse.
Google steers Uber and Lyft from the back seat 15 Apr 2019 The search giant’s parent Alphabet has multiplied its investment in the two ride-hailing apps, and reaped $1 bln in maps and marketing spend. Uber and Lyft’s rivalry will keep filling Google’s tank with ad dollars, even as Alphabet’s self-driving tech threatens their existence.
Uber’s ambitions appear too high and wide 12 Apr 2019 The ride-hailing app says its target market for mobility, meal delivery and freight is worth $4.5 trln, or 5 pct of global GDP. Yet that potential attracts fierce competition, which explains the company’s massive losses and stalling growth. Uber’s reach may exceed its grasp.
A $100 bln price tag still in Uber’s driving range 11 Apr 2019 The ride-hailing app’s mega-IPO could value it at nine times revenue. That’s less than the multiple Lyft achieved, but its stock has tanked. Both firms are burning cash and face an uncertain road to profitability. Uber’s diversification may help it survive the long journey.
Fiat Chrysler-Tesla emissions deal is a band-aid 8 Apr 2019 The Italian-American group will include Elon Musk’s electric cars in its fleet, dodging possible European carbon-dioxide fines. Tesla will welcome the cash but is no nearer to its sales target. And Fiat Chrysler still needs a partner to meet its long-term electric challenge.
Letters to shareholders: a guide for the busy CEO 5 Apr 2019 Leaders like JPMorgan CEO Jamie Dimon are enthusiastic recent adopters of the form mastered by Berkshire Hathaway’s Warren Buffett. But penning sweeping views of what ails the world and the dangers of short-termism takes time. Breakingviews offers a template for corporate chiefs.
Elon Musk drives Tesla into the mire 4 Apr 2019 The electric-car maker’s CEO presided over big production and delivery drops last quarter, especially on its high-margin vehicles. Bigger losses for longer look likely. And the SEC now has more ammo over Musk’s tweets. His refusal to pump in more capital looks ever more dicey.
France’s $1.5 bln reason to put Renault over Ghosn 4 Apr 2019 That’s how much more the state’s stake in the carmarker could be worth if the discount at which the company is trading disappears. Mending Nissan relations is a precondition. Paris may only do the minimum to help former CEO Carlos Ghosn, who has called for the government’s help.