Toyota will engineer a half-electric renaissance 27 Dec 2023 The world’s largest carmaker is playing catchup with electric upstarts like Tesla and China’s BYD, just as global demand for EVs slows. But boss Koji Sato will capitalise on the Japanese giant’s edge in hybrid vehicles as the tech enjoys a sudden renaissance.
Nio’s $2 bln Christmas gift requires some strings 19 Dec 2023 Shareholders welcomed the money-losing electric-car maker’s latest infusion from CYVN. But cash alone won’t put Nio on track unless it focuses and cuts costs. With a 20% stake and two board seats, the Abu Dhabi investor could push for some New Year’s Resolutions to boost returns.
Stellantis will cruise with GM and Ford 18 Dec 2023 The maker of Jeeps and Opels run by Carlos Tavares is one of Europe’s lowest-valued carmakers. Yet it generates much of its income in the US, and boasts industry-leading profit margins. Keeping a single New York listing could see its valuation match Detroit rivals.
UK, EU trade détente leans on Chinese threat 6 Dec 2023 The European Union fell in line with UK demands to ease part of Boris Johnson’s Brexit deal. Delaying tariffs on battery parts helps carmakers like Volkswagen sell to Britain and fend off competition from China. But Brussels has reason to be tougher on other issues, like finance.
Capital Calls: BAT writedown 6 Dec 2023 Concise views on global finance: The $65 bln maker of Lucky Strike cigarettes unveiled a plan for a ‘smokeless’ world, but it’s in no hurry to build it.
Capital Calls: Saks and Neiman Marcus 1 Dec 2023 Concise views on global finance: The two luxury retailers are once again contemplating a merger. Fickle consumers, even for high end items, make the marriage ideal.
Tesla should dig the Cybertruck’s grave 30 Nov 2023 Elon Musk is about to launch the bizarre, angular pickup two years late after warning that it will be a financial drain. GM and Ford will fight to guard their cash cows; Rivian has a leg up; and pickup buyers are electric skeptics. Releasing this albatross is a mistake.
GM’s big buyback is welcome dose of realism 29 Nov 2023 The Detroit carmaker is falling further behind electric supremo Tesla, its robo-taxis are on ice, and wages are up. Its response: buy back $10 bln of stock. Returning money to investors suggests CEO Mary Barra thinks they can spend it better than she. They would probably agree.
GM’s driverless ride heads into a ditch 21 Nov 2023 The carmaker’s robo-taxi unit is on pause after an accident; its two co-founders have left. As OpenAI’s drama shows, losing visionary leaders is a big problem. The silver lining: In GM’s case, investors never seemed to take the cash-guzzling Cruise division seriously anyway.
Renault electric acceleration can swerve IPO 15 Nov 2023 The French carmaker is eyeing 25 bln euros of revenue in 2031 for its battery ride unit Ampere. Capturing the full value of that through an IPO may be tricky in the short term given a sluggish EV market. A listing would be a distraction, and Renault doesn’t really need the money.
Rivian overtakes EV upstarts with Detroit playbook 8 Nov 2023 The $16 bln electric vehicle maker cut losses and raised production even as the market sags. A focus on pick-up trucks and vans apes Ford, but its results are moving in the right direction. While still a minnow, CEO RJ Scaringe’s group is pulling ahead of peers like Lucid.
China EV champs race to make leaner green machines 8 Nov 2023 Nio is ditching 10% of its staff. Rivals won’t be far behind. While electric-car startups in the People’s Republic have proven their tech can keep pace with Tesla, their losses have been rising, in part due to a persistent price war. That makes cutting costs the next big test.
Capital Calls: Pfizer pessimism 31 Oct 2023 Concise views on global finance: A glut of vaccines has gutted Pfizer’s valuation, leaving it lower than it was before the pandemic. That’s an over-reaction, even if its Covid-19 therapies prove worthless.
Capital Calls: McDonald’s resilience 30 Oct 2023 Concise views on global finance: The Golden Arches’ global same-store sales rose 9% thanks to both selective menu-price increases and smaller meals in different markets. It demonstrates the company’s ability to keep pace with disparate economies’ stretched consumers.
China deal offers Stellantis ingenious EV shortcut 26 Oct 2023 The $58 bln Jeep-owner is paying $1.6 bln for 20% of electric-car maker Leapmotor and the right to sell its autos abroad. Hitching up with the Chinese group’s affordable and advanced tech will help CEO Carlos Tavares accelerate his green goals, despite festering geopolitics.
GM earnings give its restive workers an inch 24 Oct 2023 The automaker’s strong third-quarter earnings have raised the stakes in a strike costing it $200 million a week. The union continues to push aggressively. But with Detroit’s gas guzzlers doing relatively well, a tough-but-survivable compromise seems possible.
Tesla downshifts out of ludicrous mode 19 Oct 2023 The electric-car maker is gasping to keep sales ahead of China’s BYD. Its US market share also dipped below half while gross profit slumped to 16% in the latest quarter as boss Elon Musk cut prices. Accelerating again depends on new car designs and cheap overseas manufacturing.
Tycoon’s lithium grab leaves investors hanging 16 Oct 2023 Billionaire Gina Rinehart has stifled Albemarle’s $4.2 bln bid for Liontown with deft use of Australia’s takeover rules. Now the minerals producer has to raise cash just as prices for the key battery material are falling. She needs to show why her spoiling tactics were worth it.
Capital Calls: Finnair 6 Oct 2023 Concise views on global finance: The state-backed airline is planning to raise 600 mln euros through a rights issue – almost as much as its current equity.
China’s EV makers would steer around EU roadblock 14 Sep 2023 A Brussels probe may mean hefty tariffs on battery-powered cars imported from the People’s Republic. BYD, Nio and peers could start making them in the bloc, which accounts for a quarter of global EV sales. Focusing on Asia and Latin America, though, would make more sense.