Transportation

China’s tech hub warrants an upgrade from Beijing

22 October 2018

Shenzhen has morphed from tiny market town to a $320 bln economy. Conferring a province-like status on it would boost Xi Jinping’s plans to integrate the surrounding region. Having more power in the capital amid a trade war also could help champion the likes of Tencent and DJI.

Activists may soon arrive by truckloads to Germany

9 October 2018

Whether uppity investors will rattle the cages of VW and Daimler depends on how they separate their commercial-vehicles arms. Resorting to standard, crummy German governance through partial listings, rather than clean-break spinoffs, will earn them the enmity of investors.

Royal Mail’s strategy gets lost in the post

2 October 2018

The delivery service partly blames its profit warning on poor worker productivity. While keeping a progressive dividend pledge will please investors irked by its new CEO’s pay, Royal Mail needs more investment to solve its operating issues. It could wind up doing the opposite.

Uber’s profitability recipe starts with Deliveroo

21 September 2018

The taxi app may buy the $2 bln European food-delivery group, says Bloomberg. It’s a hefty mouthful for a company that’s steered clear of large dealmaking. As long as Uber Eats and Deliveroo are tearing chunks off each other, though, investors have little chance of a full belly.

New York’s trouble: a total lack of tunnel vision

12 September 2018

The city’s commuters already know that its transport system is hanging by a thread. A halted project to build new tunnels underneath the Hudson river shows there are ways to make things better, but maybe not the will. Political squabbling is an obstacle, but not the only one.

BMW has good reason to take driver seat in China

20 August 2018

The German auto group may raise its stake in its Chinese JV, after the state moved to scrap foreign ownership rules. Spending $3.6 bln now would boost margins and give it a greater share of profit from China-made cars. That’s particularly valuable given U.S. trade tensions.

Ferrari proves it can run mostly on autopilot

1 August 2018

New CEO Louis Camilleri inherits a firm in fine shape from Sergio Marchionne. While FCA cut guidance after its ex-boss’s death, Ferrari posted strong results, even if it qualified its outlook as “aspirational”. The Italian supercar maker looks nonetheless poised to motor ahead.

Ryanair budget model is being eroded

23 July 2018

The carrier’s post-tax profit fell by a fifth due to strikes and a heatwave that encouraged people to holiday at home. But these one-off problems pose less of a challenge to CEO Michael O’Leary’s low-cost business than rising staff costs and the risk of a chaotic Brexit.

Automakers’ U.S. tariff fight heads down dead end

19 July 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.

Norwegian Air profit breathes life into bid battle

12 July 2018

The transatlantic budget carrier reported a surprise profit. Rising passenger numbers and falling costs will help convince airlines circling the group that its unorthodox model can fly. Suitors like IAG or Lufthansa will be more wary of letting Norwegian fall into rival hands.

Tesla can beat Ford out of China trade pits

9 July 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.

Viewsroom: Trump goes hog wild on trade

28 June 2018

The U.S. president rejected hard-liners’ calls to ban China investing in sensitive U.S. tech. Yet he’s pushing for tariffs that could cost carmakers $45 bln and is livid Harley-Davidson will no longer make EU-bound bikes in the States. Plus: tapping China’s shale reserves.

Uber leaves London pit stop with minor dents

26 June 2018

The ride-hailing app won back its permit to operate in the UK capital. Its new license is shorter than hoped, and concessions like providing drivers’ insurance will lift costs. But CEO Dara Khosrowshahi keeps his service on the road in Europe’s top market and an IPO on track.

Harley throws wrench in Trump’s tariff gears

25 June 2018

The fallout from the president’s misguided economic nationalism has prompted the $7 bln American icon to move U.S. production of its EU-bound bikes overseas. Harley’s rational response to stupid policy should allow it to cut more than enough costs to outweigh short-term pain.

Trump’s trade-war scriptwriters lack an ending

25 June 2018

The White House plans to curb investment from China, which has already dropped off sharply. Meanwhile, Harley-Davidson will move some production abroad due to EU tariffs. Firms are hurting but it’s unclear what resolution would look like – or whether the U.S. side even knows.

Audi arrest puts brakes on VW’s reform drive

18 June 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 June 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.

India’s taxi-app war enters China territory

15 June 2018

Local operator Ola lost over $700 mln in the year to March 2017 despite growing revenue 70 pct. That’s nearly as much as Uber was burning when it was battling China’s Didi. The U.S. company’s commitment to India suggests losses will keep piling up for both SoftBank-backed firms.

Tencent gets onboard the state capitalism train

8 June 2018

The gaming giant and carmaker Geely are paying $670 mln to buy into a wifi unit of China Railway. Neither is an obvious choice to help bring passengers online. Still, Beijing will encourage more of these unlikely partnerships to help its public-sector behemoths pick up steam.

Uber may find four wheels just as bad as two

7 June 2018

The car-share app plans to run electric cycles in Europe. Logical as it sounds given Uber’s transport expertise, it will lumber the company with troublesome assets, add fresh regulatory risks from city officials, and it could torch cash. The worst part: Uber has little choice.