Autos

Porsche IPO would be valid twist in VW soap opera

19 Feb 2021

More than a decade ago the sports-car maker’s parent tried to buy Volkswagen but wound up ceding control of the brand instead. VW is now mulling a partial float to fund an electric push. A mooted 100 bln euro value looks set to revive old wrangling over what Porsche is worth.

New Honda CEO seeks fix for mediocrity

19 Feb 2021

R&D boss Toshihiro Mibe is taking the wheel at the $52 bln Japanese carmaker. Current chief Takahiro Hachigo slashed costs and forged an important alliance with GM. But shareholders didn’t benefit much. Without a spark of fresh inspiration from Mibe, margins will underwhelm.

Capital Calls: Walmart, Buffett/Chevron

18 Feb 2021

Concise views on global finance in the Covid-19 era: Walmart gets an unfair ding from investors over its latest earnings report; and the Sage of Omaha takes another bet on the profit still to be made from fossil fuels.

A stripped-down BYD would run faster

17 Feb 2021

The Chinese automaker’s $3.8 bln share sale tapped a craze for electric vehicles. Yet even after a 500% rally over the last year, its Hong Kong stock looks cheap next to Nio and others. Separating battery-powered cars from other businesses could be one way to narrow the gap.

Viewsroom: Tesla/bitcoin, Hydrogen, French finance

11 Feb 2021

Elon Musk has gone full cryptocurrency. Tesla’s $1.5 bln bitcoin buy is a wink to virtual-investment, anti-establishment fervor, if a challenge to accounting rules, Richard Beales argues. Meantime, Japanese carmakers are going gaga for hydrogen, and Parisian finance is in tumult.

Japanese carmakers add gas to global autos rally

10 Feb 2021

Toyota and rivals like Ford and GM have recently been trading at multiples not enjoyed for years. Now the world’s largest car manufacturer and local competitor Honda are cranking up profit forecasts. If the semiconductor crunch is the biggest headache, 2021 should be a good year.

Japan’s auto giants could ignite hydrogen hype

9 Feb 2021

Tokyo is backing fuel-cell-powered vehicles to help cut emissions. It’s reminiscent of China’s early support for electric cars. As then, commercial success will depend on official subsidies. But unlike startups, Toyota and Honda have the tech and funds to enjoy a smoother ride.

Musk’s next disruption: accounting for crypto

8 Feb 2021

The $808 bln Tesla has put $1.5 bln into bitcoin and may accept it from buyers of its electric cars. The cryptocurrency surged to a record high value, but Musk’s car company won’t mark up the gain. If such investments catch on, reporting rules may need to change.

Stellantis boss Tavares faces triple challenge

4 Feb 2021

The new Italo-French carmaker trades at a discount to peers. Carlos Tavares’ cost-cutting record offers investors some comfort he can get 5 billion euros of annual savings. To go beyond that he’ll need to figure out China, e-vehicles and revive struggling brands like Alfa Romeo.

Truck spinoff can shift Daimler into higher gear

3 Feb 2021

The German automaker plans to list a majority stake in its truck and bus unit in Frankfurt. On a similar multiple as rivals Volvo and Volkswagen-owned Traton, it could be worth 20 bln euros. Consolidation in the sector gives Daimler an extra reason to have its own M&A currency.

Speed-loving billionaires to keep Ferrari running

2 Feb 2021

The luxury carmaker reported an 8% revenue drop during the pandemic and was cautious on future profit. Much of the hit stemmed from F1 woes rather than dwindling appetite for supercars. At least the next CEO can take some comfort from a rising cohort of the global super wealthy.

Shaky electric-car maker zips into market mania

29 Jan 2021

Faraday Future, which has yet to sell a vehicle, will get yet another lease on life by way of a SPAC. Chinese automaker Geely is also backing the $3.4 bln venture. There are red flags galore, including internal control weaknesses. The biggest may be founder Jia Yueting himself.

Elon Musk has the right amount of market cynicism

27 Jan 2021

Tesla’s CEO is often flippant about share price moves – whether his own or other so-called meme stocks like GameStop. But the automaker’s first full year of positive profit suggests Musk is working in shareholders’ long-term interests. That matters even if the stock bubble pops.

China’s BYD builds sleek concept car factory

27 Jan 2021

The $100 bln electric-vehicle maker’s chip unit is in the spotlight with an upcoming IPO. BYD also produces batteries, giving it an edge over rivals grappling with supply-chain woes. Such vertical integration only looks feasible with generous government support, however.

Corona Capital: Indian banks, LBOs, Stellantis

18 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: Indian banking guru Aditya Puri gives reasons to be bullish about New Delhi’s lenders at a Breakingviews predictions event; the ECB cracks down on risky loans; carmaker Stellantis gets a boost from passive funds.

Corona Capital: Inflation, Poshmark

14 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: Breakingviews panel predicts the end of the free-money era; and Poshmark’s IPO looks overdressed.

German used-car IPO tests investor haggling skills

13 Jan 2021

SoftBank-backed Auto1 is dragging the backstreet business into cyberspace. The question is whether CEO Christian Bertermann deserves a technology-style valuation for selling second-hand rides online. Thin margins suggest a mooted valuation of up to 8 billion euros is ambitious.

Renault overhaul requires Nissan governance grease

12 Jan 2021

CEO Luca de Meo will on Thursday launch an awkwardly named “Renaulution” to jump-start the French carmaker’s earnings. But his plan suffers from a lack of integration with its Japanese partner. Selling a stake in the Yokohama group can smooth uneven relations and rev up savings.

Corona Capital: Bond bonanza, Albertsons

12 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: U.S. companies' bond issuance in 2020 hits records across the board; and America’s No. 3 grocer continues to take advantage of the shopping habits created by Covid-19 lockdowns.

Nio helps justify a little bit of the hype

12 Jan 2021

The Chinese electric-car maker unveiled a new sedan and plans for a battery pack with over 1,000 km range. That should smooth its fourth capital hike in seven months. So much needs to go right, though, to merit a $100 bln valuation that exceeds those of Ford, GM and Daimler.