Autos

Capital Calls: AB InBev

5 May 2022

Concise views on global finance: Anheuser-Busch InBev’s revenue grew 11% in the first quarter compared to last year, but rising prices are a particular headache for the debt-laden brewer.

Capital Calls: Uber vs. Lyft, GE executive pay

4 May 2022

Concise views on global finance: Shares in both ride-hailing firms fell on Wednesday despite Uber signaling it doesn’t have to invest to attract drivers like its smaller rival. And only two-thirds of investors backed CEO Larry Culp’s compensation, even after a $10 mln bonus cut.

Rising costs put U.S. auto revamp in a jam

29 Apr 2022

Prices of cars from makers like Ford and GM are up by 13% in a year. But higher costs have caused profits to stagnate. Revamping businesses away from combustion engines is expensive, and adds pressure. They have few levers to pull, and little cushion to fund change.

Capital Calls: U.S. GDP fall masks solid economy

28 Apr 2022

Concise views on global finance: Consumer spending and business investment are resilient amid price hikes.

Musk’s Twitter tilt comes at bad time for Tesla

20 Apr 2022

The billionaire’s quixotic offer for the social-media group will be too big a distraction from running the $1 trln electric-car maker. Tesla faces disruptions from rising costs, supply-chain woes as well as more competition for scarce resources. That demands Musk’s full focus.

Porsche IPO is slow road to a higher VW valuation

20 Apr 2022

The German carmaker’s luxury brand could easily be worth 90 bln euros. Yet a plan to only sell 25% may limit the benefit for shareholders by leaving the company with a small free float and complex governance. Their consolation is that this listing may not be the final model.

Indonesia’s EV dream gets $15 bln spark of reality

20 Apr 2022

South Korea’s LGES, China’s CATL and partners plan to build comprehensive battery supply chains in the country. That’ll please Jakarta, whose bold electrification goals need industry buy-in. With supply chains stressed, it’s a well-timed boost for the wannabe production hub.

Capital Calls: Stellantis CEO’s outsize salary

14 Apr 2022

Concise views on global finance: The carmaker’s shareholders opposed Carlos Tavares’s 59 mln euro pay package, but he’s going to receive it anyway.

Renault is awkward guinea pig for Tesla-like trick

13 Apr 2022

The group may list its electric-vehicle business. Automaker CEOs look enviously at the rich valuation of Elon Musk’s group. Yet Renault’s battery unit is modest, and poor profitability and messy governance would mean its rump combustion operation would look even less desirable.

China Covid-zero zeal puts carmakers into low gear

12 Apr 2022

Vehicle exports have doubled from pre-pandemic levels, with Tesla and others more dependent on the country’s factories to meet Asian demand. But Beijing’s harsh Omicron lockdowns are stalling supply chains while war cranks up costs. This year could be a rougher ride than 2020.

Moped charger gets trapped in electric-car traffic

7 Apr 2022

Shares in Engine No. 1-backed Gogoro have jumped 16% since this week’s debut, adding zip to the Taiwanese battery-swapping scooter maker’s valuation. Yet it trails most car-charging outfits. There are risks, but Asia’s reliance on two-wheelers warrants a narrower gap.

Capital Calls: U.S. truck drivers go missing

4 Apr 2022

Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.

Great Wall Motor drives China’s cars to go global

30 Mar 2022

The $30 bln homegrown SUV and pickup-truck specialist grew overseas sales a whopping 142% in 2021. War in Ukraine casts a shadow over its Russian business. GWM’s overall success outside China, though, blazes a trail for ambitious compatriots from Nio to Chery to follow.

Petrol forecourts can shift to fuel-free future

28 Mar 2022

Despite a push to phase out gas-guzzlers, Britain’s Motor Fuel Group may fetch 5 bln pounds. Selling pricey coffee to drivers charging electric cars offers relatively zippy returns. But beside the threat from home chargers, retailers are muscling in with the same idea.

Nio prepares for gruelling financial driving test

25 Mar 2022

The electric-car maker’s loss almost doubled last year to $1.7 bln. Yet it wants to launch three new models and expand into Europe during a supply chain crunch. Its cash pile and manufacturing partner JAC will help. But Nio’s characteristic ambition will take it on a hairy ride.

Capital Calls: Renault out of Russia

24 Mar 2022

Concise views on global finance: Dire prospects for the sanctioned economy make the French carmaker’s decision to leave rational, but costly.

China’s electric cars are more Tesla than Rivian

22 Mar 2022

The war in Ukraine and a nickel market meltdown inflated battery costs for the industry. Shares in Nio, Xpeng and Li Auto swooned with upstarts like Rivian, while Elon Musk’s $900 bln marque gained ground. New technology and Beijing’s support will help the Chinese automakers catch up.

SoftBank’s Cruise exit hits self-driving cars hard

21 Mar 2022

Selling its Vision Fund stake in the autonomous unit to largest owner GM is a reminder of the Japanese group’s woes. And the carmaker had to inject $3.5 bln it could have used elsewhere. Any lingering hope that driverless cars are just around the corner is the biggest casualty.

Capital Calls: Tencent, Ted Baker

18 Mar 2022

Concise views on global finance: The Chinese web giant may have to separate its mobile payments business from its popular social media arm; U.S. buyout fund Sycamore can afford to be generous towards the hard-pressed UK fashion group’s shareholders.

A TuSimple China reversal would be hard to follow

18 Mar 2022

The $3 bln autonomous-truck upstart may sell its unit in the People's Republic. Splitting the Chinese-run firm would allay data concerns. Partners like UPS and better prospects make its U.S. business more appealing. Other Chinese entrepreneurs would struggle to take such an exit.