Autos

A year later, Tesla could use buyout-like focus

7 Aug 2019

CEO Elon Musk was upbraided for tweeting he had “funding secured” to take the carmaker private 12 months ago. Tesla now trades at barely half his mooted price, loses money and struggles to sustain growth. It’s no LBO candidate, but a dose of buyout discipline wouldn’t go amiss.

Gas-guzzlers undercut GM’s triple-zero goal

1 Aug 2019

CEO Mary Barra aims one day to nix pollution, crashes and congestion with electric and self-driving cars. But the $59 bln automaker relies on SUVs, pick-ups and the like for most of its profit and is delaying robo-taxi plans. Committing to lower emissions could provide a boost.

U.S. strength gives Fiat Chrysler an M&A breather

31 Jul 2019

The $21 billion Jeep maker is braving the car market downturn better than rivals. Record results in the key North American market produced better-than-expected operating profit. That gives boss Mike Manley headroom to cut costs while keeping an eye out for potential partners.

U.S. car-pollution pact cuts through D.C. smog

25 Jul 2019

California’s deal with BMW, Ford, Honda and VW shows the auto industry can cut U.S. emissions despite White House intransigence. The better match with overseas standards should aid progress and profitability. Add incentives to invest in electric vehicles and it’s a smart mix.

Renault’s de-Ghosnification helps up to a point

25 Jul 2019

The French carmaker is parting ways with bankers and other consiglieri tied to former CEO, and recent Japanese jailhouse guest, Carlos Ghosn. It may help Chairman Jean-Dominique Senard put his stamp on the $17 bln group. But the government is still an obstacle to merger hopes.

Tata adds fuel to India’s automotive misery

25 Jul 2019

Cars are a potent symbol of rising wealth, and Indians are buying fewer of them. Tata Motors’ earnings add to fears of a deep slowdown. There are various causes, from mounting ownership costs to adoption of Uber. Yet the automobile still looms large in the country’s future.

VW debt paints fairer picture than battered shares

25 Jul 2019

The carmaker’s valuation implies it will be worthless by the mid-2020s. Yet its 10-year bonds yield just 1.4%. Shareholders are panicked by the threat of tariffs, ride-sharing, and self-driving cars. But the disparity shows investor pessimism towards the auto sector is overdone.

Nissan’s awful earnings deliver a gift to Renault

25 Jul 2019

The Japanese car giant’s 95% drop in quarterly earnings has prompted it to announce 12,500 job cuts and plans to reduce capacity. But boss Hiroto Saikawa has previously underestimated how bad things are. That weakens his hand in resisting closer ties with Nissan’s French partner.

Tesla has to drive faster to avoid losing ground

24 Jul 2019

Elon Musk managed to rev up the electric-car maker’s production and deliveries last quarter. But selling more low-priced cars put the brakes on margins. Cost-cutting is helping some but needed investments remain parked in the garage. The road to sustained profit remains unclear.

If only James Bond could rescue Aston Martin

24 Jul 2019

The $2.2 bln maker of 007’s legendary sports car is struggling. With the auto industry’s future in flux, once-reliable buyers like VW or Ford are no longer in the business of collecting trophy assets. Barring the odd billionaire, Aston looks destined to continue skidding out.

Peugeot’s Tavares could use another deal

24 Jul 2019

The 20 bln euro French group’s CEO quickly turned around Opel Vauxhall, bought from GM in 2017. Now operating margins seem near their peak, and global car sales are stalling. Teaming up with Fiat Chrysler or Jaguar Land Rover would give the famous cost-cutter more fat to trim.

Auto pessimism could be over-revved in China

17 Jul 2019

A grim start to the year saw sales slump by more than 10%. Chaos reigned amidst new rules, while Beijing remained reluctant to offer stimulus. But policy pressure is uneven, and the worst could be past: luxury brands and electric-car makers might be the first to pep up.

Driverless Argonauts are all on valuation quests

12 Jul 2019

Ford and VW value their new autonomous-car joint venture at more than $7 bln. SoftBank and others peg GM’s similar division at $19 bln. Yet estimates on revenue and timing are all over the map. And Google’s Waymo is leading on several metrics. Their real worth could be anywhere.

Next BMW CEO’s best bet is greener cars

8 Jul 2019

The 44 billion euro automaker’s current boss Harald Krueger will in 2020 vacate one of the more attractive jobs in a tough industry. The company’s valuation and profitability put rivals to shame. To hold onto that lead, the new boss will have to focus more on electric vehicles.

Tesla’s return to growth is only half the ride

2 Jul 2019

Elon Musk’s $40 bln automaker enjoyed record sales last quarter. That will relieve cash-burn fears for now. But demand for high-margin cars has slumped, cheaper Model 3 versions are now available, capex needs a boost and tax breaks are shrinking. Turning a profit remains tough.

Emmanuel Macron’s sermon to Nissan is unhelpful

26 Jun 2019

France’s president is calling for more integration with Renault. The Japanese automaker’s shareholder meeting this week exposed deepening suspicions of the alliance, with CEO Hiroto Saikawa threatening to upend it. Paris will serve Renault better by keeping quiet.

Daimler profit crash gives new CEO cost-cut fuel

24 Jun 2019

Swede Ola Kaellenius has started his turn driving the $60 bln Mercedes-Benz owner with a profit warning. Shareholders will be exasperated by the group’s third such shock in a year. But bad news could make it easier for Kaellenius to make the case for much-needed savings.

UK $2.4 bln car-sale LBO has a quiet engine rattle

20 Jun 2019

Private equity firm TDR may buy used-car auctioneer BCA. Its experience in the sector may give it an edge over Apax, which walked away from the group last year, and returns look decent if Europeans sell more motors online. The longer-term risk is that fewer punters own cars.

Toyota uses financial heft to hedge green bets

17 Jun 2019

The $176 bln behemoth is spreading clean energy investments across pure electric cars and hybrids as well as hydrogen, partnering with rivals like Subaru to reduce costs. The company’s sheer scale makes the strategy feasible, but Nissan’s more conventional solution is a threat.

VW $17 bln IPO gets reform drive back on the road

14 Jun 2019

The German carmaker is offering a smaller slice of its truck unit at a lower valuation, after delaying the float in March. It’s a sign that CEO Herbert Diess wants to simplify the group even if proceeds are less than hoped. That’s encouraging for VW’s often-ignored investors.