Jaguar asks Ford for more cash 4 Jan 2005 The US carmaker isn t the only one to struggle with a legacy brand. Rolls Royce and Bentley have also been a burden for their buyers. Buying the mystique of a brand isn t enough. Success requires heavy investment and redesign. So far, only BMW s Mini has been a success.
Fiat wants $3bn to cancel GM put – report 23 Dec 2004 On the face of it, the Italian group seems to have a strong hand. GM could potentially lose more than $3bn if forced to buy out Fiat Auto. But things may not be so simple. In reality, Fiat is talking tough as its options are limited.
What’s Tronchetti’s next big deal? 10 Dec 2004 Maybe a merger of Pirelli and Olimpia, two of the companies through which he controls Telecom Italia. Nothing is likely to happen soon. But Tronchetti is now in a position to squish these boxes without losing control.
Are Fiat and GM heading for divorce? 26 Nov 2004 The group may not be about to switch its affections to Peugeot. But the threat may help it get a better deal in its negotiations with GM. This might be an interesting ploy. But only if Fiat really could find an alternative suitor. And that's not certain.
Chinese aren’t riding to Rover’s rescue 22 Nov 2004 Reports that China's largest carmaker SAIC will secure the future of Rover s massive Longbridge production line are overblown. Any deal is likely to strip Rover of its last item of value its intellectual property rights leaving Longbridge to fend for itself.
VW to disclose individual board salaries 16 Nov 2004 The German carmaker s decision to comply with the German governance code is a highly symbolic victory for the government. Over half the Dax 30 are now committed to disclosure. The rest should fall in line. Legislation looks less and less necessary.
Karstadt downgrades full-year forecasts 3 Nov 2004 The German retailer s Q3 results were better than expected. But Karstadt had been too bullish about the fullyear. CEO Achenbach needs to be more realistic about the scale of the task ahead.
Volkswagen ties its own hands 3 Nov 2004 The carmaker's labour agreement averts the threat of damaging strikes. But only at the cost of limiting VW's scope to restructure in future. VW earned brownie points for hiring Wolfgang Bernhard a manager with a restructuring track record. This can only dilute his impact.
Chrysler shores up tottering Daimler 28 Oct 2004 The carmaker used to comprise a German powerhouse and an American dog. Now, things are swinging the other way. The improvements at Chrysler are welcome especially after Daimler s Asian nightmare. But turning round Mercedes is the key to recovery.
Volkswagen needs a new chairman 27 Oct 2004 Ferdinand Piech is a hero to some for turning VW round in the 1990s. But he s the wrong man to head the carmaker. Piech is too dominant and too dyed in the wool to shake up VW. It is time to bring in someone new.
European carmakers scramble to restructure 14 Oct 2004 General Motors is the latest to announce it is cutting its costs in the face of rampant Asian carmakers. That's all very well. But capacity needs to be cut too. And that's really hard while governments continue to treat the industry as a political football.
Brussels takes Germany to court over VW law 13 Oct 2004 The German carmaker ought to be in favour of anything that leads to the 20% voting cap statute being scrapped. True, abolition would make it vulnerable to bids. But it would also help the company reform itself.
VW appoints hard man to turn around cars 7 Oct 2004 Former Daimler executive Wolfgang Bernhard specialises in the sort of tough love Carlos Ghosn practiced at Nissan. If he s given a free rein, he could make an impact at the German carmaker. But the halfhearted nature of his appointment raises doubts.
VW share buyback strategy backfires 22 Sep 2004 The German carmaker has wasted huge sums buying its own ordinary shares. And just to try and immunise itself against a bidder. VW can't recover the money it has wasted. The least it could do is to cancel the treasury shares.
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.