Autos

Carlos Ghosn’s image rehab begins in wrong gear

8 Jan 2020

The ex-Renault boss used his first public statements since fleeing Japan to claim a plot involving Nissan and Tokyo prosecutors. The assertions were light on detail, though. That left too much time for missteps such as likening his arrest to Japan’s attack on Pearl Harbor.

Cash-crunched Aston Martin can only buy time

7 Jan 2020

Shares in the troubled 007 carmaker dropped by almost a tenth after boss Andy Palmer announced 2019 EBITDA would nearly halve. Its $1.4 bln equity value is not much more than projected net debt. The group needs solid sales of a new SUV just to pay its mounting interest bill.

Beijing steers green cars in a new direction

6 Jan 2020

Subsidy cuts exposed tepid demand for electric vehicles in a country that accounts for 40% of global sales. Hybrids will gain stronger state support instead. China’s sway spells trouble for the likes of Tesla and Nio while giving a charge to others including Toyota and Honda.

Carlos Ghosn jailbreak is all-purpose face saver

31 Dec 2019

The former car CEO has turned up in Lebanon. How he got out of house arrest in Japan is unclear but it could wind down an uncomfortable diplomatic affair. Nissan and Renault can move on. Japan’s judicial system avoids scrutiny. Ghosn swaps his cultivated martyr image for freedom.

M&A bankers will turn climate risk into clients

19 Dec 2019

The financial impact of global warming is one of the biggest strategic issues CEOs face, yet it plays a small role in dealmaking. That might change in 2020 as shifting regulation and consumer habits start to affect the bottom line, giving climate-conscious advisers an edge.

Peugeot and Fiat hit the road in a low gear

18 Dec 2019

PSA and FCA are to create the world’s fourth-largest carmaker. But with investors yet to buy into the promise of 3.7 bln euros of annual savings, a deal was the easy part. Peugeot boss Carlos Tavares still has to work his integrational magic to get the market on side.

The hottest new car model is a Daimler-BMW deal

18 Dec 2019

The German giants want to save a combined 13 bln euros to fund the pricey transition to electric cars. But crunching together could yield synergies worth more than three times that. The Fiat-Peugeot playbook will be scrutinised heavily in Stuttgart and Munich in the year ahead.

Daimler grab challenges Germany’s China angst

16 Dec 2019

State-owned BAIC plans to up its stake in the Mercedes-maker, matching domestic peer Geely’s 10%. The move strengthens CEO Ola Kaellenius’ access to the world’s largest car market. While the German government frets about Chinese influence, the benefits for now outweigh the risks.

Chevron $10 bln pain will soon look like peanuts

11 Dec 2019

Low prices and rivals’ disposals may have prepared shareholders for the U.S. driller writing down its Appalachian and other gas assets. But CEO Michael Wirth’s focus on short-term, low-capital projects only gives a respite from the bigger valuation hit of climate change.

New Aston Martin owner would face Bond-like task

5 Dec 2019

The luxury-car maker’s shares jumped on a report of bid interest from a Canadian billionaire. Aston Martin would appeal to two kinds of buyer: an optimist who thinks they can boost sales beyond already rosy forecasts, or someone not terribly interested in financial returns.

Macron should score rare hat trick in Peugeot deal

4 Dec 2019

The coming merger with Fiat allows public lender Bpifrance to sell a $1.1 bln stake in the carmaker and triple the government’s money. That would allay investor fears about an overbearing French state and give President Emmanuel Macron more ammo to help entrepreneurs.

GM takes FCA to task over past and future slights

21 Nov 2019

Detroit’s top carmaker claims Fiat Chrysler bribed union officials to get a better deal than GM in contract talks. CEO Mary Barra’s crew even called out her almost-merger partner posthumously. The lawsuit smacks of payback, but its goal must be to gum up Fiat’s deal with Peugeot.

Agnellis poised to overtake Peugeots with car deal

20 Nov 2019

Two historic industrial families are negotiating to unite. Shares of the Peugeot clan’s $3 bln holding FFP have outperformed $19 bln Exor over the past five years. But bigger savings for Fiat in a Peugeot merger should allow the Italian dynasty to reclaim its longer-term edge.

Renault needs to break pay taboo to get right boss

18 Nov 2019

The French carmaker wants a new CEO, whose first job is to mend the Nissan relationship. But pay restraint at state-owned firms will deter contenders like Toyota’s Didier Leroy. Still, Air France busting its remuneration ceiling gives chair Jean-Dominique Senard some flexibility.

Value fight would drive Peugeot into cul-de-sac

13 Nov 2019

Investors in the French carmaker may question CEO Carlos Tavares’ zeal for a merger with rival Fiat. But holding out for better terms is futile when big shareholders with 50% of voting rights back the plan. Opposing the deal would also undermine Tavares, Peugeot’s top asset.

Battered Japan automakers look better under bonnet

13 Nov 2019

From Subaru and Suzuki to Mazda and Mitsubishi, local marques have been hit by a strong yen and soft demand. Though things are bad, fundamentals seem firm and government stimulus may help. Japanese carmakers look clunky, but they are ready to switch up a gear.

Nissan’s new bosses start with a whimper

12 Nov 2019

New CEO Makoto Uchida has inherited a pile-up. The carmaker’s quarterly sales fell, while operating margins contracted. Cost cuts aren’t helping fast enough, and full-year forecasts got revised downward, again. The only good news is that low expectations are easy to beat.

Viewsroom: When the CEO breaks the rules

7 Nov 2019

McDonald’s has provided a map for other firms after ousting boss Steve Easterbrook over a consensual relationship with an employee. Elsewhere, Aramco’s IPO and Fiat Chrysler’s merger with Peugeot. Plus: Breaking Japan’s love of hard cash.

Peugeot rescue pays better for China than cars

5 Nov 2019

Dongfeng has made some $2 bln from its 2014 rescue of Peugeot, which aims to merge with Fiat Chrysler. The state-owned car giant can cash out and euthanise its stalled JV with Peugeot too. Both moves would be financially wise, if strategically embarrassing, for China and France.

Uber earnings are winding road to nowhere

4 Nov 2019

The $53 bln rideshare company’s revenue grew by 30%; it expects a profit by 2021. But which revenue, and which profit? Uber’s reporting is increasingly intricate, but offers few clues on big questions like whether it can really make money, and whether insiders will stick around.