Autos

EU’s China trade weak spots hide in plain sight

9 Jul 2024

Beijing may retaliate after Brussels imposed tariffs on Chinese-made electric vehicles. Of the 5,000 product groups the People’s Republic imports from the EU, many are too crucial or too small to bother with. But luxury goods, petrol cars and some foods are plausible targets.

BYD’s overseas road trip offers EU new tariffs map

9 Jul 2024

The $94 bln EV maker has just opened a factory in Thailand and is spending $1 bln to build one in Turkey. Both countries agreed preferential terms for Chinese carmakers’ imports in exchange for local production. These deals might inspire Brussels to re-engineer its own policies.

Geely looks ready to ride tariffs storm

2 Jul 2024

The $11 bln company controlled by Li Shufu more than doubled earnings in the first quarter as sales of EVs, hybrids and gas guzzlers all grew. The auto group has protested EU duties, which will come into play on Thursday. But it can afford to wait on its European expansion.

Ola sets a mileage test for India’s EV market

27 Jun 2024

Investors are resisting the electric scooter maker's mooted IPO price-tag. At $7 bln, it's 30% higher than the SoftBank-backed company's last fundraise. Bhavish Aggarwal's startup has an early-mover advantage and deserves a premium valuation but peers are catching up fast

VW and Rivian wheel out a more practical EV model

26 Jun 2024

The German carmaker is investing up to $5 bln in its smaller US rival and a new JV to develop software. Many such tie-ups have ended badly, but in this case it’s more than just funding a flashy but cash-burning newcomer. The big incumbent here gets access to proven technology.

China has an incentive to keep road to Europe open

26 Jun 2024

Beijing agreed to start talks with the EU on the bloc's planned tariffs on China-made EVs. Carmakers can survive but the issue represents a larger threat. It would hurt the $18 trln economy to add a full blown trade war with the EU to its escalating one with the United States.

Toyota’s chair is driving with ‘L’ plates back on

19 Jun 2024

The tally of votes against reelecting Akio Toyoda almost doubled this year to 27% following months of governance scandals. It’s a strong rebuke for any board leader but especially so in traditionally consensus-driven Japan. Toyoda now has to show he can learn from past mistakes.

Didi IPO would give Hong Kong its dream comeback

19 Jun 2024

Hong Kong listings have raised a paltry $1.5 bln this year. To restore animal spirits, the city needs a big offering from a well-known Chinese firm to showcase Beijing's support for offshore share sales and the end of tech crackdowns. Few tick as many boxes as the ride-hailer.

Elon Musk’s mathiness strays further from reality

18 Jun 2024

His latest theorem is that Optimus robots can make Tesla worth $25 trln, or a quarter of today’s global GDP. At 76 times expected earnings, investors clearly allow some latitude with the CEO’s calculations. The ever-odder numbers, however, are now off by orders of magnitude.

China’s EV makers can ride the tariffs backlash

18 Jun 2024

The US and the EU have imposed hefty import duties on electric vehicles BYD, Tesla and others make in the People’s Republic. In this Exchange podcast, consultant and former Chrysler executive Bill Russo explains why Europe’s levies are more a speeding fine than a stop sign.

Hyundai’s India IPO will have imitators

17 Jun 2024

Its business in the world's third-largest car market will fetch an eye-watering premium to the South Korean parent. If the $3 bln deal flies, other foreign companies eager to capture growth may follow. Possible candidates to tap India's asset arbitrage include Honda and Sumitomo.

EU tariffs solidify China’s EV hierarchy

13 Jun 2024

Investors brushed off less-than-feared levies on Chinese electric cars, with BYD stock up 3% from two days ago and SAIC down just 2%. For the former, a vertically integrated model and lesser reliance on subsidies mean it can now pull ahead of compatriots at home and abroad.

China can divide-and-trade a less welcoming Europe

13 Jun 2024

EU tariffs on cars are a setback for Beijing. Yet President Xi Jinping will test the bloc’s ability to form a coherent policy against the world’s second largest economy. Hungary is benefiting from rising Chinese investments and trade and will become a key battleground.

Musk expects more from shareholders than himself

12 Jun 2024

A vote on the Tesla boss’s court-nixed $56 bln payday has become a hostage negotiation, the implicit threat Musk could walk justified by saying 'a deal is a deal.' That didn’t stop Musk trying to kill a deal for Twitter. After recent dismal displays, investors should do likewise.

Toyota is driving a dangerously fine line

4 Jun 2024

The world's largest automaker shed some $8 bln of market value after revealing problems in testing procedures. It's not all bad, but it adds to a heap of governance gripes ahead of this month's AGM. And probes may yet uncover more. Chair Akio Toyoda looks particularly exposed.

Toyota investors can give chair a year for tune-up

29 May 2024

Proxy advisers Glass Lewis and ISS want shareholders not to re-elect Akio Toyoda atop the $300 bln automaker’s board. There’s logic to it. But the former CEO has pledged to address governance problems at subsidiaries. If he doesn’t, it makes a stronger case for booting him out.

German consumer is poor substitute for China trade

21 May 2024

Consumption is up but won’t be enough to lift the country out of its funk, with growth of just 0.2% this year. Exports to the People’s Republic are threatened by worsening relations between Brussels and Beijing. Meanwhile a split Berlin government looks unable to launch reforms.

China’s cars fine-tune their driving skills

21 May 2024

Automakers in the country are touting autonomous driving, and Tesla is preparing to join the fray. On this week’s Exchange podcast, Maxwell Zhou, CEO of Alibaba-backed DeepRoute.ai, explains why progress is accelerating and how that is already changing consumers’ expectations.

Japan’s value push will turn into a shove

16 May 2024

Shareholder meetings next month will help gauge progress in the official campaign to boost corporate performance. Toyota, SoftBank and Fast Retailing have not signed up. Given the importance of ensuring resilience in the $4.2 trln economy, Tokyo is likely to apply more pressure.

Biden’s China policy is backed into a corner

14 May 2024

The president quadrupled tariffs on electric cars from the People’s Republic as homegrown efforts stumble. China leads on tech, and the US depends on the undependable Tesla. Muddled policy on everything from steel to batteries will only up the pressure for more rearguard actions.