Cox: The Agnellis will miss Marchionne most of all 25 Jul 2018 Tragedy and a wise call by John Elkann, the family’s then-28-year-old figurehead, put the Italian-Canadian in charge at Fiat in 2004. Marchionne, who has died at 66, turned assets worth 5.5 bln euros into nearly 60 bln. As a CEO he may be replaceable; as Elkann’s mentor he’s not.
Marchionne’s reformist legacy at risk in Italy 24 Jul 2018 Hailed as an Italian Thatcherite, the most successful car boss in a generation challenged rigid labour rules at home. Standing up against unions and local lobbies, he raised productivity and saved jobs. His absence will make it easier for Rome’s new bosses to go backwards.
Peugeot’s Opel repair job looks halfway complete 24 Jul 2018 CEO Carlos Tavares has restored Opel to profitability, just a year after buying it from GM. A 5 pct operating margin makes his long-term targets credible, at the risk of giving hostile unions a stronger hand. Still, Tavares’ cost cuts vindicate Peugeot’s premium valuation.
Tesla sends wrong message to right stakeholders 23 Jul 2018 Elon Musk asked some suppliers to cut prices. He’d be nuts not to. It’s a way for the $53 bln electric-car maker to control costs while dangling the prospect of more business for parts makers if Tesla succeeds. But pitching it as a do-or-die moment undermines Musk’s credibility.
Sergio Marchionne leaves a giant sweater to fill 21 Jul 2018 Ill health has forced FCA’s CEO to leave early. Successor Mike Manley runs Jeep, its most profitable brand and core to Fiat Chrysler’s five-year plan. That provides continuity. But without jumper-wearing Marchionne, Fiat’s independent future may be harder to guarantee.
Automakers’ U.S. tariff fight heads down dead end 19 Jul 2018 The industry argues import duties would force Americans to pay an extra $83 bln a year for new cars. There’s a chance next week’s Trump-Juncker summit will yield a deal. But the U.S. president seems determined to punish countries for past trade wrongs, real or perceived.
Viewsroom: Europe puts Google in a bind 19 Jul 2018 The search firm can easily cover the EU’s $5 bln fine for using its Android phone system to stymie rivals. But the order to stop forcing handset makers to pre-install its software could clip innovation. Plus: Goldman Sachs and Tesla put lackluster corporate governance on show.
BYD’s football fumble salts investor wounds 17 Jul 2018 The $17 bln Chinese car and battery maker says a fraudster struck deals in its name, including with Arsenal. BYD has already squandered a rally in electric vehicle stocks; its muddled response to this scandal will vex stakeholders like Warren Buffett. Patience could run out.
Elon Musk outburst puts Tesla board on the spot 16 Jul 2018 Punishing a CEO who tweets, without evidence, that someone is a pedophile ought to be a no-brainer. But Musk’s fortunes and the electric-car maker’s are symbiotic, and his allies pack the board. Investors should worry for their own sakes if directors fail to act this time.
Tesla can beat Ford out of China trade pits 9 Jul 2018 Absorbing new tariffs on U.S. cars would probably have killed any chance of CEO Elon Musk hitting his goal of a profitable second half. Ford can soak them up. Strategically, the balance is different: Ford needs new ideas, while Tesla just has to get on with building a factory.
Auto tariff deal hopes are rightly restrained 5 Jul 2018 Carmaker shares rose after a German newspaper reported Europe may be able to avoid higher U.S. levies on exports. But BMW, Daimler and Volkswagen’s valuations are still down a fifth since January. Caution is sensible given the unpredictability of White House thinking on trade.
Singapore makes Uber unlikely techlash test case 5 Jul 2018 City-state regulators say the ride-app’s merger with $6 bln Grab curbs competition. They want drivers freed up and prices held steady, but also threaten to undo the deal unless consumers are happy with the fixes. The hard line may be a small sign of what’s to come for Big Tech.
Tesla upshift puts focus on bigger battles 2 Jul 2018 Elon Musk had to pull out all the stops to hit his oft-postponed Model 3 production target. It will cheer his faithful followers and make it easier to raise capital. But for the electric-car maker to really cruise, he must prove he can sustainably increase output and make money.
Chinese used-car sale fails timing test 28 Jun 2018 Online marketplace Uxin has halved the size of its U.S. float. A hefty lending business may be to blame, but its worst offense is probably picking a moment when regulatory uncertainty is already battering Chinese tech stocks. Rivals waiting in the IPO queue should take note.
China’s gentle German auto bid may work too well 25 Jun 2018 The Wang family, owners of a Chinese car parts supplier, made an $882 mln offer for headrest maker Grammer. A pledge to save jobs and the buyer’s size make a full takeover tricky. Yet shareholders wary of the increasingly messy governance probably won’t want to stick around.
Trade war tariffs eat Daimler’s homework 21 Jun 2018 The carmaker’s tariff-induced profit warning is odd, since Chinese duties would hit U.S. cars but not imports from elsewhere. Daimler’s statement could cover for poor performance, or make a political point about a trade war’s costs. Expect other companies to try the same.
EU’s best bet is to indulge Trump on car tariffs 20 Jun 2018 Europe’s tit-for-tat response to U.S. metal duties risks a trade war that hits EU carmakers. Better to offer President Donald Trump the carrot of lower auto tariffs, which have little effect anyway. That could humour his trade antics, but cause less economic damage.
Elon Musk’s paranoia may be justified 19 Jun 2018 Tesla’s boss says an employee tried to “sabotage” the firm and thinks rivals, energy firms and short-sellers are out to get the $60 bln electric-car maker. He’s partly right, but it comes with the territory for someone who wants to overturn the industry with his radical vision.
Audi arrest puts brakes on VW’s reform drive 18 Jun 2018 The head of Volkswagen’s luxury brand is being held over fears he may hinder an investigation into emissions cheating. The question is why the long-serving executive still had his job. The carmaker’s messy governance is still hindering new boss Herbert Diess’ cleanup operation.
Renault M&A race sidelines governance niceties 15 Jun 2018 Investors backed CEO Carlos Ghosn’s pay despite the French state’s opposition. His 7.4 million euro package was greased with soft targets. Yet the high proportion of shares at least gives Ghosn an extra incentive to push for a value-boosting merger with Japan’s Nissan.