Autos

Daimler’s dividend reverse may be just the start

11 Feb 2020

The Mercedes maker slashed its payout by 2.5 bln euros after 2019 earnings fell by nearly two-thirds. It’s a painful but necessary step to conserve cash while investing in electric vehicles. If projections of stable sales prove too rosy, CEO Ola Kaellenius may need to cut deeper.

China’s carmakers could drive well in India

11 Feb 2020

Great Wall Motor will invest $1 bln in the country, others will also follow the road west searching for growth. Although sales are stalling in India too, and the likes of GM have retreated, Chinese carmakers will have an edge as consumers look beyond small, affordable rides.

Geely picks odd timing for Volvo IPO reboot

10 Feb 2020

After abandoning a $30 bln flotation of the Swedish carmaker in 2018, its Chinese owner wants to combine it with its Hong Kong unit, and list in Sweden. A merger might create savings. Yet any benefit will be overshadowed by a tough domestic market and the coronavirus fallout.

Insurance sale gives Agnellis a cash conundrum

10 Feb 2020

Exor, run by Fiat scion John Elkann, is in talks to sell PartnerRe to France’s Covea for $9 bln. Factor in a big dividend from the Peugeot merger and the Italian family’s investment vehicle will be liquid but less diversified. Deploying the proceeds wisely is a new challenge.

Ford boss tries engine change to exit pits

7 Feb 2020

Jim Hackett is shaking up the struggling automaker’s top ranks, effectively anointing Jim Farley his successor. The hope is this will reverse Ford’s poor performance, capped by last quarter’s surprise loss. If it doesn’t, this overhaul is likely to be Hackett’s last.

Viewsroom: Tesla’s improbable ride

6 Feb 2020

Neither car sales nor the potential of robo-taxis justifies the $136 bln electric-vehicle maker’s shares almost doubling this year. Defying logic, Elon Musk’s barely profitable firm is now the world’s second most valuable car company. Plus, the U.S. elections fiasco in Iowa.

FCA’s China virus immunity only goes so far

6 Feb 2020

The Italian-American carmaker has struggled to make inroads in the Middle Kingdom’s vast market. The low exposure is an antidote to coronavirus concerns that are keeping customers off the road. But if a lockdown in China drags beyond February, FCA’s supply chain may unravel.

Ford boss may find he’s victim of Darwinism

4 Feb 2020

Jim Hackett was supposed to turn around the Detroit automaker’s fortunes. After almost three years in the driver’s seat, he’s finding success elusive: Ford ended 2019 with a surprise loss. Tesla’s surging valuation and overhauls at other rivals pile on even more pressure.

Aston Martin’s eager saviour may be short of gas

31 Jan 2020

The luxury auto firm will get a $650 mln capital boost led by billionaire Lawrence Stroll. That will help ramp up production and avoid costly borrowing. But financial survival depends on reviving sales. The Formula One team owner, who’s never run a carmaker, has a lot to prove.

Volkswagen can bump up its low-gear U.S. truck bid

31 Jan 2020

The German automaker’s truck unit has offered $2.9 bln in cash for the 83% of Navistar it doesn’t already own. The premium looks underpowered compared with the benefits of an alliance. But falling volumes leave the U.S. company and shareholder Carl Icahn with few alternatives.

Tata test-drives conglomerate power

30 Jan 2020

Various companies in the $160 bln Indian empire are uniting to support an electric-car initiative. In theory, it should give Tata Motors an edge over Western rivals forced to find outside partners. If it all works in practice, it could deliver rare and valuable synergies.

New Renault boss faces a vertiginous uphill start

28 Jan 2020

The French automaker said Luca de Meo will be its CEO from July. The Italian helped revive Fiat under late boss Marchionne and is credited with fixing Volkswagen-owned Seat. Renault’s grim profit margins and a dilapidated alliance with Nissan present stiff challenges.

Urban culture adds to Harley-Davidson’s backfires

28 Jan 2020

The $5 bln motorbike maker is attracting new riders to replace aging baby boomers. But revenue keeps falling. City dwellers have plenty of other transport options. But they also lack time to devote to the Hog. That’s causing almost as many to ditch their wheels as climb aboard.

Car-parts makers seek solace in climate-driven M&A

28 Jan 2020

BorgWarner’s $1.5 bln swoop for Delphi will help boost its green-engine offerings, the same rationale behind the Peugeot-Fiat Chrysler deal. BorgWarner easily covers the 77% premium with cost cuts. But a struggling Delphi brings with it debt and slower margins.

GM’s investors school Tesla’s on self-driving hype

22 Jan 2020

Shares in Mary Barra’s $50 bln carmaker barely budged after it unveiled its autonomous vehicle, yet the potential of similar technology helped Elon Musk’s outfit to top $100 bln in market value. Considering true self-driving remains a long way off, GM’s owners are more realistic.

Viewsroom: Carlos Ghosn’s great escape

16 Jan 2020

The international car boss who fled Japanese authorities is now lambasting Nissan and suing Renault for money due. Breakingviews columnists discuss why the latest twists overshadow the fraying global alliance of three automakers. Also, why China’s Geely wants Aston Martin.

Hadas: Ghosn caught in non-prisoner dilemma

15 Jan 2020

The self-liberated former Nissan boss dodged Japanese justice, but took his conscience with him to Lebanon. His decision to flee would be hard to justify without insistent claims of total innocence. Still, the moral and practical case for showing some contrition is strong.

Geely’s European car collection is too eccentric

13 Jan 2020

The Chinese rescuer of Lotus and London black cabs might inject funds into Aston Martin, James Bond’s favoured ride. Founder Li Shufu had some success with Volvo, but with his home market under pressure, becoming a collector of genteel money-losers is an unwelcome distraction.

Tesla’s lucrative mode enabled

8 Jan 2020

Elon Musk’s electric-car maker is now worth $89 bln. That requires some hefty assumptions, not least on annual car sales. Shift the numbers up and down to see how many Tesla needs to deliver to justify its racy valuation.

Tesla valuation speeds into ludicrous mode

8 Jan 2020

The electric-car maker is worth $89 bln after finally hitting one of CEO Elon Musk’s targets. Tesla’s future is rosier than a year ago. But the valuation means believing it’ll soon sell 3 mln vehicles a year, an eightfold increase, or be a robo-taxi giant. Neither is realistic.