Autos

Knorr risks a prang in German auto bidding war

30 Jun 2021

The 16 bln euro brake maker’s shares fell sharply after it said it might buy car electricals supplier Hella. The latter’s focus on lights points to minimal savings. Competition from more logical bidders like France’s Faurecia will drive financial returns even further off-road.

Geely’s reversal clears way for STAR takeoff

28 Jun 2021

The Chinese carmaker dropped plans to list on the technology growth board citing “strategic adjustments”. Chances are strategy was adjusted by the government, which wants to prevent STAR from being overrun by mature giants. That’s mixed news for Syngenta, also in the queue.

Capital Calls: Microsoft, U.S. bank footprint

25 Jun 2021

Concise views on global finance: The $2 trillion software giant’s avoidance of antitrust scrutiny may be coming to an end; a new study challenges the received wisdom that American banks do better in faster-growing states.

Volkswagen’s Tesla race hits wrong gear in China

23 Jun 2021

Boss Herbert Diess wants the country to account for much of the $156 bln German automaker’s electric-car sales by 2025. But VW is falling way short of this year’s target, despite an overall market-leading position. That bodes ill for hopes of challenging Elon Musk’s dominance.

Capital Calls: Schwarzman’s double tax speak

23 Jun 2021

Concise views on global finance: The founder of Blackstone has a love-hate relationship with capital gains changes.

Battery deficit risks UK driving electric jalopy

22 Jun 2021

Britain needs more so-called gigafactories to supply power for green cars, ahead of import caps and a ban from 2030 on gas guzzlers. Current expansion plans may electrify just 20% of local output from BMW, Nissan and others. Prime Minister Boris Johnson faces an uphill drive.

CNH pays hefty price for driverless tractor ride

21 Jun 2021

The Italian-American agricultural equipment group is paying $2.1 bln for Raven Industries, which makes tech for autonomous farm machines. With few cost savings, the multiple of almost 40 times EBITDA looks rich. CNH will need a big sales boost to harvest a decent return.

Calculator: Didi’s valuation drive

16 Jun 2021

China’s Uber is hoping its IPO will raise $10 bln, which would give it a $100 bln price tag. Justifying that target on current form requires a rich valuation multiple on par with the one sported by Southeast Asian super-app Grab. Barring that, Didi will need to accelerate growth.

SPAC boom gets “come to Jesus” moment in Lordstown

14 Jun 2021

The electric-pickup-truck maker admitted some pre-orders were nebulous, saw its CEO and CFO step down and warned it may not remain a going concern. This implosion, less than a year after going public, makes it easy for critics and regulators to latch onto specific SPAC problems.

Didi embarks on ultimate IPO road-test

11 Jun 2021

The Beijing-based ride-hailing giant, last valued at $62 bln, unveiled plans to go public in New York. It’s growing quickly, but cruising into record-high markets, U.S. political pressure on Chinese issuers and tech crackdowns at home. The fare could be steep for new investors.

South Korean self-driving deal spins its wheels

10 Jun 2021

Car-parts maker Mando has the right general idea carving out its autonomous-tech unit into a new business. But the company is keeping full control and not raising any new money. That may yet change. For now, though, the partial overhaul offers shareholders a shabby ride.

Tesla disrupted by traditional mechanics

4 Jun 2021

May orders nearly halved in China, The Information reports, after safety concerns. This week’s triple recall in the United States makes a deeper dent in its reputation. Car upstarts have quality crises like everyone else, but they do more damage on the bleeding technology edge.

Porsche family applies some gas to VW untangling

1 Jun 2021

The 135 bln euro carmaker’s controlling shareholder could take a direct stake in the eponymous luxury marque if it listed. Getting the Porsche-Piech family, VW bosses and public investors to play ball could be tricky, but they could all get something out of a deal.

Lambo bid tests Volkswagen’s electric bona fides

27 May 2021

CEO Herbert Diess wags on and on about Europe’s biggest carmaker challenging Tesla for the green automotive crown. Selling the sports car favoured by the crypto-sheikh set, which has attracted a bid worth $9 bln, would allow him to put his money where his gaffe-prone mouth is.

Car-charging deal curbs SPAC sticker shock

27 May 2021

Australia-based Tritium’s $1.7 bln blank-cheque merger includes bold revenue predictions typical of such tie-ups. But it values the manufacturer of electric-vehicle fast chargers at a decent discount to rivals and isn’t raising extra cash. The relative thriftiness is welcome.

Bain discount auto IPO is cheap for a reason

25 May 2021

The private equity firm is listing French car parts seller PHE to raise 450 mln euros to pay down debt and prep for M&A. Europe’s fragmented after-sales market is due an overhaul. The jalopy-like multiple reflects uncertain growth and the threat from cheap-to-run electric motors.

Capital Calls: JPMorgan, FirstGroup, Break fees

18 May 2021

Concise insights on global finance: Jamie Dimon is shuffling his deputies; the UK bus-to-rail group’s sale of its U.S. businesses to EQT has hit an investor revolt; deals involving AT&T and Canadian National Railway highlight the fees due for walking away.

Capital Calls: Train bidding war

14 May 2021

Concise views on global finance: Canadian National increases its bid for U.S.-based Kansas City Southern.

Hertz Robinhood squad is right for wrong reasons

13 May 2021

The rental-car firm’s shares retained value through a restructuring process, partly thanks to retail investors' enthusiasm. After a bankruptcy-exit auction, shareholders are set to collect cash, shares and such worth over $1 billion. Next time, disappointment is more likely.

Bitcoin U-turn recharges Tesla governance concerns

13 May 2021

Elon Musk has stopped taking the cryptocurrency for car payments after just three months on climate concerns. But bitcoin mining is a well-known intense user of dirty energy. The flipflop suggests Tesla’s oversight of its founder remains as lax as in the bad old days.