Singapore’s Grab tempts headquarters curse 1 Feb 2019 The ride-hailing app plans to occupy a newly designed $135 mln building, under an 11-year lease. From Myspace to Yahoo, lavish moves have been a bad omen. Grab has cash, but is young, unprofitable and in a fierce rivalry with Go-Jek. Tech optimism may have gone too far again.
Ferrari boss’s new positivity has a downside 31 Jan 2019 Louis Camilleri sent the carmaker’s shares up 12 percent by pledging to hit a 2020 target in 2019. Investors spooked by his cautious driving when he took over last summer will be cheered. But the more the outlook chops and changes, the more investors will discount its durability.
Tesla CFO exit news is flashback to bad old days 31 Jan 2019 The electric-car maker’s new board chair and directors may be helping to tone down CEO Elon Musk’s overwrought promises and tweets. But his decision to wait until the end of an earnings call to disclose that Tesla’s finance chief is leaving shows Musk remains firmly at the wheel.
Tesla’s 2019 becoming a matter of flourish or fold 30 Jan 2019 CEO Elon Musk presided over a second profitable quarter. But U.S. Model 3 demand may be tapering off, competition and customer gripes abound, and there’s little cash for investment. Musk needs electrifying sales in Europe and China to prove the $53 bln Tesla’s staying power.
The end of gasoline-powered cars is nigh. Soonish. 28 Jan 2019 Sales of electric vehicles doubled last year while the overall market stagnated. China and California led the charge. The internal combustion engine still dominates, but demographics, governance and economics suggest that dynamic is not far from breaking hard.
Ghosn successors may further strain Nissan ties 24 Jan 2019 Renault has well-qualified successors lined up to replace its former CEO and chair, who resigned. They have the French state’s implicit backing. The political association could, however, raise hackles at its Japanese partner, making it harder to resolve the crisis in the alliance.
Evergrande’s desperation to drive could find road 24 Jan 2019 The Chinese conglomerate’s health unit is making another quirky bet on electric vehicles as the property market at its core stalls. Yet a $900 mln move for NEVS might make more sense than earlier purchases if Evergrande can use it to help startups overcome production problems.
Toyota JV recharges Panasonic’s battery business 23 Jan 2019 The two Japanese companies are uniting to power electric vehicles. It should provide a technological step forward for the $200 bln automaker, but also reduce Panasonic’s dependence on Elon Musk’s Tesla. Toyota’s control, though, may yet limit plans to sell to other manufacturers.
Ford’s real reveal adds pressure on Jim Hackett 22 Jan 2019 The CEO’s ho-hum VW alliance made the carmaker the talk of a sluggish Detroit auto show. But Ford also disclosed that trucks and vans generate 135 pct of earnings. That highlights the need for speedier fixes to other, sputtering units – or a full merger that Hackett rejects.
Renault-Nissan saga will eventually favour France 21 Jan 2019 Governance changes on the Japanese side may reduce its French partner’s board power. Yet Renault’s 43 pct stake is its trump card, and Nissan’s moves to skirt it are likely to fail. It’ll take time, but Paris should one day get what it wants: closer integration and maybe a deal.
Musk’s rare dose of realism could serve Tesla well 18 Jan 2019 The electric-car maker’s CEO effectively issued the firm’s first profit warning, saying it needs “luck” to turn a “tiny” profit this quarter and cutting staff. If this is the start of a more pragmatic approach by the firm after years of Musk overpromising, that’s no bad thing.
Viewsroom: China’s slowdown is not created equal 17 Jan 2019 People in the Middle Kingdom are buying fewer iPhones and cars, but Nike and others are chugging away nicely. Meanwhile, India’s struggling rural farmers are a force too big to ignore in this year’s general election. Plus: The Detroit auto show reflects the industry’s gloom.
Bad governance caps VW-Ford convoy’s top speed 15 Jan 2019 The two automakers will build vans and pickups together and may cooperate on electric and self-driving vehicles. Sharing the costs of long-term projects with uncertain returns is smart. A merger would make more sense, but powerful shareholders' supervoting stock makes that hard.
GM’s good cheer is likely to run out of gas 11 Jan 2019 Mary Barra juiced the $50 bln automaker’s shares by forecasting 10 pct earnings growth. That pierced the gloom that tariffs, slowing sales and self-driving skepticism have cast over Detroit’s annual show. But relying on cost cuts and new trucks makes profit gains hard to sustain.
Ford’s European repair job may need outside help 10 Jan 2019 If boss Jim Hackett hits long-term profit targets, the carmaker’s market value could rise by $10 bln. Yet that requires implausible cost cuts. Partnering with or selling to a continental rival might be better. Peugeot’s purchase of GM’s European arm shows both sides can benefit.
Beijing U-turn hints at silly season for subsidies 9 Jan 2019 The state planner is hinting at measures to increase domestic consumer spending on cars and appliances. Any tax cuts or handouts would be a short-term fix that shifts focus away from efforts to cut excess capacity. It underscores China’s determination to prop up the economy.
Ghosn puts up his freedom as bond for his legacy 8 Jan 2019 The deposed 64-year-old automaker CEO has declared his innocence. Given Japan's 99 pct conviction rate, he could face a decade in jail. Ghosn may hope prosecutors back off. Either way, the man who saved Nissan creates space to pull off another unprecedented rescue - of himself.
Geely flags Chinese car pileup ahead 8 Jan 2019 The $13 bln automaker is forecasting flat sales for the year ahead, following a 20 pct rise last year. Demand is cooling after years of blistering growth, forcing companies to downshift. Politics and over-investment are mostly to blame, but that’s scant comfort to investors.
Elon Musk steers Tesla toward bad old Motown ‘hood 2 Jan 2019 The electric-car maker’s CEO might sustain demand by cutting prices to offset a reduced tax break for buyers. But that could slash earnings in half. Putting volume over profit was one of Ford and GM’s pre-crash mistakes, hurting quality too. Musk is driving down a similar road.
Tech to disrupt supply chains more than trade wars 2 Jan 2019 U.S. President Donald Trump’s tariffs give global companies an incentive to manufacture locally. But the shift was already underway because of new technologies like automation. Carmakers and pharma groups will localise more production in 2019 even if tensions over commerce abate.