Autos

Biden graces Detroit but Musk steals the show

15 Sep 2022

The U.S. president’s visit to the Motor City auto show coincides with vast subsidies to aid carmakers in going electric. But Elon Musk’s Tesla, which eschews the event, is why they need help in the first place. Government support is less picking winners than consoling runners-up.

China’s battery maker has an IPO charging problem

15 Sep 2022

China Aviation Lithium is low on power ahead of its $1.5 bln Hong Kong float. The CATL wannabe is growing fast but its profit leans on government subsidies. Throw in high dependence on a single automaker and ties to a sanctioned entity, and it looks like a difficult ride.

Capital Calls: SoftBank

14 Sep 2022

Concise views on global finance: The $62 bln conglomerate may be considering a third instantiation of its Vision Fund.

Capital Calls: SPACs’ long shadows

12 Sep 2022

Concise views on global finance: While electric-vehicle startup Nikola is moving beyond its founder, both it and its SPAC-partner peers are mired in supply chain challenges, slipping deadlines and tumbling share price performance.

Capital Calls: ECB rate hike

8 Sep 2022

Concise views on global finance: Europe’s central bank risks recession to combat inflation.

BMW’s Chinese partner woes are a warning to rivals

8 Sep 2022

The German carmaker’s local counterpart said its indebted state-backed parent siphoned $1.6 bln in funds. Fortunately BMW just took control of the joint venture and looks insulated. For foreign peers mulling similar moves, the scandal sends a message: hurry up or hurry out.

Capital Calls: Porsche’s bold IPO

6 Sep 2022

Concise views on global finance: German carmaker Volkswagen is pushing ahead with its plan to list the luxury brand, despite torrid markets.

China’s BYD can navigate a Buffett selldown

31 Aug 2022

The Shenzhen electric-car maker’s shares fell more than 10% after the billionaire offloaded a sliver of his $7.5 bln stake. Fears of further sales are weighing on the company’s stock. But BYD is enjoying a stellar run as vertical integration and a daring move upmarket pay off.

Nio’s affordable cars carry luxury baggage

25 Aug 2022

Founder William Li is rolling China’s $32 bln electric-vehicle maker into the mass-market. It will be tempting to hitch cheaper products with premium services like battery-swapping to win market share. A similar strategy has served him well so far, but risks driving up costs.

Do hybrid vehicles help or hurt the environment?

25 Aug 2022

Automakers like Toyota still favour cars that run on both batteries and fossil fuels. In this Viewsroom podcast, Breakingviews columnists debate whether this is smart given shoddy power grids and rising cell costs, or a dangerous distraction in the battle against climate change.

Geely’s export success warns global rivals

19 Aug 2022

The $21 bln Chinese carmaker is growing overseas, despite political headwinds and consumer skepticism. Electric vehicles are targeted to make up half its sales by 2023. Boss Li Shufu is best known for acquiring Volvo, but now his own brands can compete in Europe and beyond.

Electric perfection is enemy of hybrid-car good

16 Aug 2022

Activists are attacking Toyota and others for sticking with designs that recharge using combustion. Yet pure electric models are only as green as their power grids and require heavy infrastructure investment. Puritanism is premature, and could prompt consumer backlash.

Carmakers’ China decline is global warning

5 Aug 2022

Even as the People’s Republic loosens ownership restrictions on foreign manufacturers, Stellantis is closing its local Jeep factory. Domestic rivals took over 50% of the world’s largest car market in 2021. The worry for Western giants is that competition accelerates elsewhere.

Capital Calls: Chevron rewards investors

29 Jul 2022

Concise views on global finance: The oil firm’s disciplined spending means it has been able to dramatically ramp up its buyback plan.

Time for Volkswagen to park its Porsche IPO

28 Jul 2022

The 82 bln euro German group’s plan to list the luxury marque has been tarnished by its decision to name the same CEO for both companies. The IPO could be a distraction at a time when carmakers face a recession. The best option right now is a delay, plus a governance rethink.

UK car insurer pile-up may lure M&A rubberneckers

28 Jul 2022

Direct Line and rivals’ shares have crashed due to inflation and the soaring cost of claims. Yet waning competition may boost future returns. It’s a good time for a potential acquirer, say France’s Cóvea, to step in, especially with private equity on the sidelines.

VW’s CEO ouster heralds less noise, more muddle

25 Jul 2022

The $86 bln carmaker replaced Herbert Diess with Oliver Blume. It loses a bold champion of electric vehicles, but also one prone to gaffes and weakened by union battles. The decision to keep Blume in charge of both VW and Porsche, meanwhile, muddies the latter’s looming IPO.

Tesla investors bet on recovery and fantasy

20 Jul 2022

The electric-car leader’s 10% quarterly fall in sales reflects factory woes shared by other carmakers too. Yet with a market capitalization of $770 bln, Tesla is valued like none of its peers. The stock is buoyed by promises of a bigger revolution up boss Elon Musk’s sleeve.

China’s great outdoors opens up for business

19 Jul 2022

Tired of lockdowns and wary of Covid contagion, citizens are embracing camping, glamping and recreational vehicles. For now, the market is tiny compared to the $700 bln U.S. industry. It’s a great opportunity for foreign brands to pitch their tents in a fast-growing luxury space.

Aston Martin cash call leaves a sputtering engine

15 Jul 2022

The luxury-car maker may raise 653 mln pounds from its shareholders and Saudi’s state fund. That would avert an imminent crash, and the terms are less painful than investors feared. But the group will still be laden with heavy borrowings amid a worrying economic backdrop.