Autos

Aston Martin gets license to kill or cure itself

25 Sep 2019

The eye-popping 12% interest rate on the luxury automaker’s new $150 mln bond highlights creditor concerns about demand, cash burn and Brexit. But if targets for a new SUV are not met quickly and the company again runs short of cash, investors may find the yield is not enough.

Ghosn’s power would get lost in translation

24 Sep 2019

The SEC claims the former Nissan boss hid half his salary to avoid public opprobrium, and was able to do so because of lax controls. It’s a stark contrast to the United States, where governance is strong but social pressure over pay is weak. Both systems fail in different ways.

Volkswagen’s damaged CEO remains roadworthy

24 Sep 2019

Herbert Diess has presided over a share price fall, made a Nazi joke, and may now face a criminal charge of market manipulation. Assuming he survives the latter, his recent truck IPO and focus on electric vehicles are right. Oddly, the $85 bln group would be weaker without him.

Cox: Imagine Carlos Ghosn as a human rights martyr

20 Sep 2019

The wealthy former Nissan-Renault boss who held a birthday bash at Versailles isn’t the first person to come to mind. But that’s the argument his lawyers are making in a renewed pitch to acquit him of criminal charges in Japan. As unlikely as it sounds, the case has some merit.

Fiat can’t wait forever for Renault to sort itself

18 Sep 2019

The collapsed merger of the two car groups promised savings worth 33 bln euros. That’ll shrink if Fiat kickstarts its own electric-car investments rather than piggybacking on Renault’s. The longer the French take to win over hesitant ally Nissan, the less sense a Fiat deal makes.

GM strike is minor fender-bender, not car crash

16 Sep 2019

The $52 billion carmaker’s investors are pricing in a modest one-week earnings hit from union workers downing tools. It’s not like the old days: CEO Mary Barra gave in on key points before the UAW strike even began. That should bring members back to work within a few days.

Tencent jams pedal into battered China car market

16 Sep 2019

The tech giant and others have made a roughly $1.2 bln offer for comparison site Bitauto. That will in turn mean bidding for online retailer Yixin, which the target part-owns. It’s a cheap bet that may bring benefits in payments; acceleration will still require an auto recovery.

Viewsroom: Nissan’s car-crash CEO

11 Sep 2019

Hiroto Saikawa is stepping down amid controversy over his pay. It has implications for the company’s rocky Renault alliance, and by extension for the French carmaker’s recent attempt to merge with Fiat Chrysler. Plus, is activist Elliott Management going soft on AT&T?

Junking Ford threatens shares more than bonds

10 Sep 2019

Moody’s has downgraded the carmaker’s debt rating, citing weakening cash flow and earnings. But that’s old news already priced into the $36 bln company’s bonds. While CEO Jim Hackett has some tough years ahead, bankruptcy risk is remote. The dividend, though, is much less secure.

CEO exit challenges Nissan’s new governance model

9 Sep 2019

Hiroto Saikawa is stepping down amid controversy over his pay. Partner Renault recently backed him in exchange for seats on a newly formed nominating committee. Finding someone who can lead a turnaround and navigate the strained alliance won’t be easy. At least it's a short list.

Carmakers’ antitrust probe is more smoke than fire

6 Sep 2019

A pledge by BMW, Ford, Honda and VW to cut emissions has caught the eye of a U.S. watchdog. Some aspects of their deal may deserve scrutiny. But competition between the four, and the industry, is fierce. It’s hard to see how their plans would leave consumers worse off.

Nissan CEO has overstayed a lukewarm welcome

5 Sep 2019

Hiroto Saikawa and others may have padded their pay. The figures appear small compared to allegations levied against Carlos Ghosn, but it hardly matters. Saikawa has not rebuilt credibility or fixed performance at the $25 bln carmaker. Investors have no cause to remain patient.

Toyota and Suzuki make a virtue of cross-holdings

29 Aug 2019

The carmakers are buying small stakes in each other, four years after Suzuki ended a rocky ride with Volkswagen. Although such deals are being unwound across Japan, this one holds promise. It may pave the way for a deeper alliance in an industry increasingly dependent on scale.

VW still grapples with Piech’s mixed legacy

27 Aug 2019

The former CEO and chairman, who died Sunday, turned a flailing carmaker into the global leader, and built heft in an industry that requires scale. Yet VW’s profitability is far from top-class, and the giant company is still recovering from the legacy of dodgy family governance.

China’s car wreckage cries out for consolidation

27 Aug 2019

Falling sales hit Geely and Great Wall harder in the first half than rivals partnered with foreign manufacturers. Both companies are seeking JVs, but the good ones are mostly taken and there are too many local rivals. A better road to recovery would be to hurry domestic mergers.

Carmakers have $372 bln incentive to defy Trump

23 Aug 2019

That’s the annual sales at risk if they don’t meet emissions rules in California and 14 other states that are tougher than the U.S. president wants. True, carmakers could lose sales elsewhere if Trump were right that cleaner cars cost more and work less well. But he isn’t.

A VW-Tesla marriage looks heartbreakingly remote

22 Aug 2019

The German carmaker’s CEO Herbert Diess covets the $40 bln group’s tech, Manager Magazin reported. Tesla could use VW’s cash and manufacturing nous. But boss Elon Musk has shown no interest in cooperating with rivals. And Tesla’s crazy-high valuation makes a takeover unlikely.

Nio flashes warning for China’s luxury car market

16 Aug 2019

A co-founder of the $3 bln Tesla wannabe has quit, the latest in a string of departures. It comes after battery fires and other strategic missteps at the electric-vehicle maker. But its woes may also portend slowing premium demand: that should worry peers.

Scout24 demonstrates how not to deal with Elliott

13 Aug 2019

The $6 bln German classifieds group may sell its automotive arm - a key request of the U.S. activist hedge fund which owns 7%. Scout boss Tobias Hartmann could have announced the no-brainer months ago after a failed buyout. Instead he waited, and Elliott has him on the back foot.

Uber-Lyft price-war truce will be temporary

8 Aug 2019

The ride-hailing firms say user fees are becoming more rational while passenger growth was steady. But, expenses are up. A record $5.2 bln quarterly loss and drags from freight and food delivery put Uber under more pressure. Cutting prices may be a tempting way to boost growth.