Autos

Peugeot pays hefty dowry to win Fiat’s hand

31 Oct 2019

The Italian-American group’s shareholders are likely to emerge 3.5 bln euros better off after tying the knot with the French rival. It’s a price worth paying. Carlos Tavares has run Peugeot at maximum speed. The union gives him access to the U.S. and 25 bln euros of extra value.

Cox: Sergio Marchionne posthumously gets his deal

31 Oct 2019

Fiat Chrysler’s $50-bln-plus merger with Peugeot culminates a journey begun by the Italian carmaker’s former CEO to reduce capacity and wasteful spending in the industry. It took some fits and starts, and dalliances with GM and Renault, but has finally come to fruition.

Cash payout would help smooth FCA-Peugeot ride

30 Oct 2019

Combining two second-tier carmakers is tough enough. Add the French government, a state-owned Chinese company and squabbling European families, and things get even messier. A special Peugeot dividend and putting the Agnelli family in charge would make the $50 bln deal cleaner.

Fiat-Peugeot talks look more signal than maneuver

29 Oct 2019

Jilted by Renault, carmaker Fiat Chrysler has revived discussions about a possible $50 bln merger with France’s Peugeot. The savings could be large, but so could political opposition. Even so, it might bring Renault back to the table – and that tie-up may now be easier to seal.

GM lets short-term profit trump no-emissions goal

29 Oct 2019

The U.S. automaker is among several supporting a White House legal push to strip California of its right to regulate tailpipe emissions. If successful, the move will encourage sales of gas-guzzling SUVs and trucks. GM is delaying its non-polluting future as long as possible.

Great Wall Motor’s lean machines defy China gloom

29 Oct 2019

The carmaker surprised with a 507% increase in third-quarter earnings. The homegrown marque has made the best of an historic slowdown in domestic demand by squeezing suppliers and juicing margins. The market might stay sour, but here’s a recipe for making lemons into lemonade.

Ford is reversing back to reliance on credit

24 Oct 2019

The $37 bln automaker’s third quarter extends a money-losing year for its core business, after eking out a profit in 2018. Its lending unit now carries the company. That happened going into the financial crisis. If it doesn’t change soon, CEO Jim Hackett will face tough choices.

Stalling sales steer Ford toward China exit ramp

24 Oct 2019

A 27% drop in third-quarter revenue from the People's Republic has hurt the U.S. carmaker's recovery. Local partners are struggling, and rivals have pulled ahead. It's hard to leave the world’s largest market, but if Ford can't move forward, reverse comes next.

Elon Musk cuts his way to easier path

23 Oct 2019

Tesla’s CEO brought in less money selling more electric cars last quarter, but he reduced expenses broadly enough to make a profit. Even the troubled SolarCity franchise picked up. A nearly 20% after-hours share-price pop suggests some bets that Musk is finally getting on track.

Hyundai is a dark horse in driverless car race

23 Oct 2019

The South Korean company is chasing Uber, GM and others with a strong push into autonomous and electric vehicles. A plan to invest $35 bln through 2025 signals the commitment. Hyundai’s poor R&D track record is a worry, but Seoul’s support and tech nous give it a fighting chance.

Renault M&A would help stem profit bleed

18 Oct 2019

The $15 bln French carmaker expects 2019 operating profit to plunge as growth slows and R&D expenses rise. While it can do little about a sluggish economy, which may see sales decline by 4%, combining with Nissan or Fiat would mitigate the cost of investing in cleaner engines.

GM strike deal brings less relief than expected

16 Oct 2019

That’s because the month-long walkout didn’t hurt much. Union politics, chest-thumping by both sides and shareholder complacency prolonged talks that should have been more or less a formality. Workers suffered, but investors didn’t care much. GM got lucky with the timing.

Zooming luxury cars expose a two-speed China

15 Oct 2019

Mercedes-Benz and peers notched up double-digit sales growth during the last quarter. The wider Chinese auto industry, though, is in the doldrums, and faces a 5% decline this year. It lays bare a widening wealth gap that is already sending more brands scrabbling upmarket.

Renault Bollorexit makes Fiat deal slightly easier

11 Oct 2019

Thierry Bolloré’s departure as CEO of the French car company further distances it from the Carlos Ghosn era. That should benefit a reset with Nissan’s new leadership, which is needed to appease the French state. It also simplifies the management choices for a Fiat-Renault combo.

Viewsroom: General Motors strike runs on hot air

10 Oct 2019

Workers downed tools over three weeks ago, despite last-minute concessions by the U.S. carmaker. Job-security fears are a sticking point. So is the union’s need to prove its worth after a kickbacks scandal. Plus: U.S. basketball plays smart defense on China’s Hong Kong backlash.

Tata should make a U-turn on Jaguar Land Rover

9 Oct 2019

The Indian carmaker has clung to the marques since buying them for $2.3 bln in 2008. As auto sales plummet, though, Tata would be smarter to focus on its home market without the cash-burning JLR distraction. It also could pocket a tidy sum as a seller in a consolidating industry.

New Nissan CEO will make Renault’s life easier

8 Oct 2019

Makoto Uchida’s first job is to cut costs and get the $24 bln carmaker growing again. Resolving tensions with partner and 43% shareholder Renault is next on the to-do list. A history of working on alliance projects suggests he’ll favour closer cooperation than rivals for the job.

Tesla sales are running on discharging battery

3 Oct 2019

Elon Musk’s $44 bln automaker delivered barely more cars last quarter than in the previous period. The average sale price of its mass-market Model 3 is falling. It suggests little revenue growth, another loss, more investment delays and, eventually, the need for yet more capital.

BYD could get China’s Tesla back on the road

2 Oct 2019

Nio is sputtering. Making snazzy rides for the world's largest market is burning up cash, and the $1.4 bln electric-car maker is now contemplating more cuts just to keep up. That could tarnish a shiny brand. Pooling with a more experienced peer, like BYD, may be a better option.

GM investors are not showing up for work, either

30 Sep 2019

Striking employees downed tools 15 days ago, and the $53 billion carmaker has lost more money than was initially priced in. The industrial action ought to have been easy to resolve. Now shareholders are ignoring it just as it’s starting to bite financially.