Autos

Nickel gets nixed, French firms linger in Russia

17 Mar 2022

The war in Ukraine is affecting far corners of global finance. In the Viewsroom podcast, Breakingviews columnists explain how the conflict helped bring nickel trading to a halt in London. And why oil giant Total and carmaker Renault are resisting the exodus by Western companies.

Gas guzzlers face reckoning from Ukraine shock

14 Mar 2022

Prices of raw materials and fuel have soared after the Russian invasion. That could push drivers to swap big cars like the Jeep Wrangler for more energy-efficient rides. With big vehicles currently bringing in roughly half of sales, that’s a problem for the $4 trln auto industry.

Renault’s Russian options range from bad to ugly

14 Mar 2022

The French carmaker dominates the local market and owns the country’s largest auto factory, which it cannot operate or sell. Its association with Rostec, a key defence player, is an added headache. The 40% drop in Renault’s share price in the past month points to broader damage.

Electric-car companies face test of endurance

1 Mar 2022

Lordstown and Lucid shares sank on disappointing estimates of how many cars they will be able to produce. Where it was once enough just to show that making a car was possible, electric-vehicle hopefuls must now prove they can make many, while squeezed by supply challenges.

Stellantis’ forward push faces winding road

1 Mar 2022

CEO Carlos Tavares vowed to double the carmaker’s sales to 300 bln euros by 2030. It’s a bold pledge, helped by a drive in finance and data. Yet to fix the Jeep-manufacturer’s depressed valuation, investors need proof Tavares can tackle its challenges in China and battery rides.

Capital Calls: DraftKings, Shake Shack, Fanatics

18 Feb 2022

Concise views on global finance: The online gambling firm predicts fast growth but heavy losses; the U.S. burger chain had disappointing earnings yet its valuation is sky-high; the sports merchandiser teams up with Jay-Z to buy a streetwear firm for a song.

Tesla can build cars, but culture may be harder

11 Feb 2022

The environmental promise of boss Elon Musk’s vision necessitates rapid growth. Managing a workforce expanding 42% annually, though, brings new risks for leaders more used to disrupting social and governance norms than upholding them. Lawsuits from workers hint at the problem.

China’s electric cars map ambitious road to Europe

11 Feb 2022

Xpeng is introducing its battery-powered brand to two more countries on the continent; Nio is close behind. There are no shortcuts from Shanghai to Stockholm, and competing with $900 bln Tesla will be tough. But an asset-light strategy limits the financial fallout if they fail.

Capital Calls: ABB’s car chargers, Airport M&A

10 Feb 2022

Concise views on global finance: The Swiss engineering group’s listing plans come at an unfortunate moment; Britain’s John Menzies takes a risk with rejection of “opportunistic” approach from Kuwaiti air services group NAS.

Uber looks like a tech stock in the worst ways

9 Feb 2022

The ride-hailing firm is expected to grow sales rapidly. But that isn’t coming easy – or cheap - and the valuation is now in line with Netflix. As investors decide to look more closely at the fundamentals of tech darlings, Uber has more troubling attributes than the good ones.

Toyota’s armour plating takes some ill-timed dents

9 Feb 2022

Supply-chain crises have caught up with the Japanese marque. Now it’s cutting production as quarterly earnings fall 21%. It’s the most profitable of peers, but Honda, Ford and GM are slated to grow faster and Toyota lags on electric cars. Boss Akio Toyoda needs to drive hard.

Vietnam electric car whizz takes ambitious road

9 Feb 2022

Carmaker Vinfast is going all-electric and aims to sell overseas. The strategy combines conglomerate power through parent Vingroup with potential for a faster-than-expected shift to new energy vehicles in Southeast Asia. It maps a decent drive to a mooted $3 bln U.S. listing.

Ford split idea rolls back the odometer

4 Feb 2022

Tesla’s valuation makes contemplating a breakup tempting for Ford, and boss Jim Farley even sounds open to it. But its EV business is intertwined with combustion, which still lags crosstown rival GM. Plus Delphi shows how separating linked car businesses can go wrong.

Lithium squeeze could short-circuit electric cars

1 Feb 2022

Automakers like GM battling the chip shortage face a bigger problem down the road. The price of metals in electric-car batteries is soaring as demand outpaces supply. With even market leader Tesla feeling the bite, the electric revolution looks further off – and less lucrative.

Tesla hits speed bump but with improved suspension

26 Jan 2022

Elon Musk’s electric-car maker’s revenue increased 65% in the fourth quarter. Like rivals it’s battling higher costs and parts shortages, but unlike them it has a 31% gross profit margin as a buffer. Even if the market shifts down a gear, that ought to help it remain in front.

The Exchange: Xpeng boldly goes

18 Jan 2022

The Chinese electric-car maker has navigated everything from shrinking subsidies to Covid-19. Embracing new ways of working is critical, President Brian Gu tells Katrina Hamlin. Future forays into Europe, the metaverse and flying cars will test the Tesla rival’s resilience again.

Turo IPO falls short of being Airbnb for autos

12 Jan 2022

The car-sharing startup backed by Barry Diller’s IAC has filed to go public. If it can keep growing as an intermediary like Airbnb, it could be worth $7 bln. The risk is it ends up with heavier cost burdens like Uber - or even Hertz, which would peg its worth below $2 bln.

LG revs up Asia’s green-car capital engine

11 Jan 2022

The South Korean company’s $11 bln battery spinoff is just the start of a regional deal frenzy that also includes CATL’s $7 bln share sale. Unlike in Chinese tech, government policies are lifting growth and valuations. For now at least, investors will go along for the ride.

Detroit automakers need the iPhone playbook

10 Jan 2022

The global chip shortage has left GM, Ford and others short of parts to build their cars. The pandemic is only partly to blame. Automakers, which often rely on intermediaries to specify and source components, also need to imitate Apple and get hands-on with their supply chains.

SocGen $6 bln car deal leaves shares in slow lane

6 Jan 2022

The French bank is helping fund the purchase of LeasePlan by its automotive unit ALD. Returns look high and the move helps the pair shift to an electric future. But since investors prefer focused banks, rather than conglomerates, CEO Frédéric Oudéa won’t get much credit.