Autos

Toyota’s U.S. triumph comes with an asterisk

5 Jan 2022

The Japanese automaker sold the most cars in the U.S. in 2021, knocking General Motors off pole position for the first time since 1931. But Toyota’s early advantage of hoarded semiconductors is evaporating. And it’s well behind in the race to transition to electric vehicles.

Nio’s European road trip will earn bragging rights

4 Jan 2022

The Chinese electric-car maker will win foreign fans with a marketing splurge. While it may take years to grab a big share of the $120 bln global market for battery-powered rides, even modest success abroad can put it ahead of rivals, boosting its sales and stock in 2022.

Tesla at $1 trln must do more than just deliver

3 Jan 2022

Elon Musk’s automaker added $100 bln of market value after serving customers with almost a million vehicles in 2021. The shares tend to pop when Tesla exceeds expectations. But maintaining its valuation will turn the focus onto more ambitious and difficult promises.

What our columnists got right and wrong in 2021

31 Dec 2021

We look back at a year as unpredictable as its predecessor. We foresaw an M&A surge, even if some of the deals we called for, like Tesla buying Daimler, failed to materialize. But we nailed a few biggies, like Grab’s moment in the limelight, inflation’s return and mRNA’s success.

Mammoth re-engineering project begins: Germany

28 Dec 2021

Its manufacturing-led, carbon intensive economy is ill-suited to the 21st century. Chancellor Olaf Scholz and firms like Volkswagen will spend more on green and digital investment. The trick will be to plough on despite short-term supply chain problems and rising labour costs.

Capital Calls: Intel in China, Covid-testing M&A

23 Dec 2021

Concise views on global finance: The chipmaker apologizes over Xinjiang to protect its business in the People's Republic; Quidel's deal to buy Ortho Clinical Diagnostics for $6 bln provides some future-proofing – and a windfall for private equity firm Carlyle.

Combustion engines are carmakers’ toxic assets

22 Dec 2021

The likes of Volkswagen and GM are shifting to battery vehicles while petrol-powered rides die out. Engine units are a drag on valuations, like lenders’ ropey assets after the 2008 crisis. Hiving them off into a “bad bank” would please investors and generate much-needed savings.

Booze to batteries will measure China’s transition

21 Dec 2021

Distiller Kweichow Moutai overtook lender ICBC as the country’s biggest company by market cap in 2020. President Xi Jinping’s policy upheaval, along with rapidly changing investor attitudes, augur a new champ for 2022. Look for CATL to ride the electric-vehicle craze to the top.

Toyota will send its hybrids to the breaker’s yard

14 Dec 2021

The $250 bln carmaker is dramatically increasing its electric ambitions after lagging for years. It could help defend its earnings multiple lead over Ford and GM. But Toyota still lobbies against tougher emissions standards. Powering down its hybrids will add carbon clarity.

Harley-Davidson hitches easy ride on SPAC boom

13 Dec 2021

The ageing motorcycle brand will list its electric bike unit for $2.3 bln by merging it with a blank-cheque vehicle. It’s a way of tapping into hungry, ESG-focused investors without giving away too much upside. And a less-than-trippy valuation should ensure a smooth journey.

The Exchange: Breakingviews at Reuters Next

9 Dec 2021

At the global conference, our columnists interviewed the movers and shakers at Ola Electric, Philip Morris, ViacomCBS and Klarna about disruption at scale in India, the challenges of making bold corporate transitions in tobacco and media, and Europe’s fintech frenzy.

Porsche IPO may only partly aid VW’s odd valuation

9 Dec 2021

Volkswagen could finally list its luxury marque. Porsche may be worth up to 100 bln euros or more, making VW’s own $150 bln valuation look underpowered. The value assigned to both, however, may depend on how much control VW is prepared to give up.

VW’s CEO soap opera is darker than Tesla’s

7 Dec 2021

Herbert Diess is likely to stay as the German carmaker’s boss but with wings clipped after a clash with unions. His ambitious battery plans make Volkswagen a more credible rival to Elon Musk’s firm. Unlike the Tesla founder’s antics, its leadership dramas reflect deep challenges.

Didi faces long and perilous journey to Hong Kong

3 Dec 2021

The $38 bln ride-hailing group is eschewing its New York listing for one in the Asian hub amid pressure from Beijing. A take-private would be costly; migrating American depositary receipts could be tricky. Didi will have to navigate Hong Kong's tougher IPO requirements too.

Super-app Grab rides high into New York debut

1 Dec 2021

The Southeast Asian giant held firm in a difficult year. It’s on track to hit targets set from its record $31 bln SPAC merger, supporting a rich 13 times sales valuation multiple. Margins in its ride-hailing business show the promise of its food-delivery-to-fintech ambitions.

Capital Calls: Volkswagen, Turkey

1 Dec 2021

Concise views on global finance: The German carmaker may take mining stakes to secure electric-vehicle raw materials, echoing Henry Ford, the U.S. production-line pioneer; the Turkish central bank is resorting to old tricks to prop up the lira but it’s an unsustainable strategy.

Nissan’s green drive hits yellow light

30 Nov 2021

Shareholders booed the Japanese automaker’s plan to invest $18 bln in clean cars over the next five years and make half its fleet electric by 2030. The erstwhile electric-car leader wants to regain ground, but it’s a financial stretch with profit weak and the stock overvalued.

Capital Calls: Software AG logs onto buyout boom

26 Nov 2021

Concise views on global finance: A subdued valuation and eager bidders increase the 3 billion euro German company’s chances of a possible sale.

Capital Calls: China’s data centre sale

24 Nov 2021

Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.

Australia deserves to pay climate risk premium

18 Nov 2021

Canberra adopted a net-zero emissions target mainly to keep the country from being punished by investors. Its newly released assumptions on electric vehicles, mining and more confirm a lack of seriousness in the plan. Sustained pressure from fund managers could make a difference.