Tesla in pole position to win U.S.-China trade war 17 Apr 2018 Beijing has set deadlines to lift JV rules for foreign automakers. Ford and Daimler will be pleased, but Elon Musk's embattled $50 bln electric-car maker should benefit most. Freed to enter the biggest market without having to share technology, Tesla's risky strategy may pay off.
Beijing electric car leader runs on policy power 6 Mar 2018 A $4.5 billion backdoor listing offers the first pure play on China’s new energy auto market. Beijing Electric Vehicles leans heavily on subsidies and patronage - a precarious position as the central government reworks support for the sector. Its alliance with Daimler might help.
Geely wheels Mercedes into its chop shop 26 Feb 2018 The Chinese carmaker's founder has bought a 10 pct stake in Daimler, parking it next to Volvo, Lotus, London cabs and Swedish trucks. It's another strange turn in Geely's route to global growth. This new $9 bln part will be hard to fuse onto what has otherwise been a sweet ride.
French state is handbrake on Renault’s valuation 16 Feb 2018 Despite revenue rising 15 pct last year and a cost-saving alliance with Japan’s Nissan, the carmaker trades at a discount to rivals. Selling more cars and boosting margins will help, but the French government’s 15 pct stake is the main obstacle to CEO Carlos Ghosn boosting value.
Nissan’s partners can help it shift to higher gear 8 Feb 2018 The $42 bln Japanese automaker's operating profit tanked, as it discounted cars in America and a domestic inspection scandal took its toll. That will keep its laggard valuation stuck in neutral. Nissan's challenge is to make the most of its alliances with Renault and Mitsubishi.
Elon Musk fiddles while Tesla burns 7 Feb 2018 The entrepreneur bagged some good PR for his other firms by putting a Roadster into space and selling flamethrowers. He also broadened Tesla’s funding mix with a securitization. But with some $4 bln of cash set for incineration this year, the carmaker needs to sell more stock.
Auto 2.0 race is becoming General Motors’ to lose 6 Feb 2018 Cost cuts and SUV and truck sales are boosting earnings. CEO Mary Barra has also pulled out of troubled markets. That leaves the automaker well positioned to lead mass production of electric and self-driving vehicles – as long as Barra can leave behind its accident-prone past.
Tesla board drives CEO pay into electric dreamland 23 Jan 2018 Elon Musk will make nearly $60 bln if he hits new targets by 2028, on top of the $100 bln-plus value boost for his existing stake. Musk is critical to Tesla, and he blew through his last goals years early. The new ones are even more ambitious. But incentives can lose meaning.
Ford stock’s staying power makes no sense 17 Jan 2018 The Motown automaker expects costs and currencies to impede its earnings recovery. It also trails GM on autonomous cars and is having to double its electric-vehicle investments. Yet Ford trades at a higher multiple than its Michigan rival. GM's prospects look brighter.
Indian tycoon has golden opportunity in aluminium 10 Jan 2018 A reported $2.5 bln bid from Hindalco for U.S. aluminium producer Aleris would mark a shift in focus to growth for Kumar Mangalam Birla. The headline price is punchy. But surging demand for electric vehicles and more fuel-efficient petrol cars should be great news for the metal.
Electric cars will catch up with gas guzzlers 5 Jan 2018 Plans to ban dirty vehicles are stoking investment in clean transport, driving down costs. Consumers could find battery power as cheap as combustion engines for the first time in 2018. But it will be harder to drive up profitability. Automakers will struggle as margins tighten.
Wanted: Italian-American carmaker seeks new driver 29 Dec 2017 CEO Sergio Marchionne will soon head for FCA’s off ramp. A blizzard of well-timed deals helped spark stellar returns, but the group has low margins and big gaps. Marchionne also wears too many hats. Breakingviews imagines a consultant advising the board on picking his successor.
Geely could be useful back-seat driver at Volvo 27 Dec 2017 Seven years after buying Volvo Cars, the Chinese group is acquiring Cevian’s 8.2 pct stake in the Swedish truckmaker. The activist gets a decent exit after 11 years, while Volvo gets help with electric vehicles and China. The risk is Geely is getting in at the top of the cycle.
Booming metal markets test mettle of memories 2 Nov 2017 The frenzy over electric cars is helping push copper, nickel and cobalt prices to their highest in years. An expected supply squeeze is also a factor. After frolicking in London this week, global miners get a shot to prove they've learned from cycles past and can use cash wisely.
Tesla could hit second gear with Shanghai factory 22 Oct 2017 Elon Musk may soon be able to build his electric cars in China. That's essential for catching up or keeping pace with rivals in the fast-growing market. It'll also take pressure off production trouble in the United States. A troubling tariff problem, however, is apt to remain.
Electric vehicles lack killer spark – for now 27 Sep 2017 BHP reckons battery-powered cars are reaching a tipping point. Even vacuum maker Dyson is building one. And driverless vehicles could make EVs a huge money-spinner. High costs and concerns over raw-material supplies, though, will keep the combustion engine purring for years.
Foreign automakers will pay for Chinese EV drive 19 Sep 2017 China’s pledge to scrap gas guzzlers looks serious. A new quota system will force motor-makers to sell electric vehicles. Those who miss targets must buy credits from battery-powered rivals. Home-grown brands are likely to reap the benefits, at the expense of global giants.
Water woes may leave green-car hopes high and dry 28 Aug 2017 Ford is the latest to ramp up electric-vehicle production with a deal in China. But the industry relies heavily on the Democratic Republic of Congo for a crucial battery material. Drought, abysmal infrastructure and conflict could put ever-increasing supply needs at risk.
Toyota tunes up with Mazda deal 4 Aug 2017 The Japanese giant and its peer are taking small stakes in each other, and will build a $1.6 bln U.S. plant together. Toyota is racing to keep up with shifts in technology and consumer tastes. Drawing closer to Mazda and other Japanese automakers helps.
Chinese green car boom fuels lithium rush 17 Jul 2017 Beijing's policy push toward electric vehicles is driving investor interest in lithium and lithium miners. The price of lithium carbonate has almost trebled since 2015, and acquisitions are underway. Demand for the suddenly strategic commodity could trigger a tussle over supply.