Autos

Viewsroom: When dealmaking gets difficult

13 Jun 2019

Raytheon and United Technologies’ planned $114 bln tie-up raises questions about strategy, cost cuts and executive overreach. It’s prompted their shares to tank and activist Bill Ackman to oppose it. And Fiat Chrysler and Renault’s mooted merger has crashed. Can they salvage it?

What’s under Renault’s hood?

13 Jun 2019

Appraise the French carmaker's parts to decide whether Fiat Chrysler's merger offer was stingy or fair.

Fiat’s Renault offer was fairer than it looked

13 Jun 2019

Some investors complained a 15 bln euro merger proposal from the Italian-American group put a negative value on the French carmaker’s core business. Use more realistic valuations for Renault’s parts, though, and the price looks better. Reviving the deal also unlocks huge savings.

Renault-Nissan clash exposes flaws in Fiat deal

10 Jun 2019

The French carmaker has threatened to block its Japanese ally’s governance overhaul, while its state shareholder might sell. The contrasting manoeuvres may help revive a merger with Fiat Chrysler. But evidence of messy governance is more likely to put off a potential partner.

Fiat-Renault deadlock is opportunity for Peugeot

6 Jun 2019

The 33 bln euro auto marriage stalled after French state meddling. Fiat might find an easier alternative with Carlos Tavares’ carmaker, given its historically looser government relations and 9 bln euro cash pile. It might also allow a cleaner exit for Fiat owner John Elkann.

Fiat-Renault M&A collapse creates losers all round

6 Jun 2019

The Italian-American carmaker withdrew a merger offer after the French state sought to delay a decision. The companies lose 5 bln euros of synergies, while Renault and Nissan remain stuck in a frayed alliance. Paris has flubbed an opportunity to show its pro-business credentials.

Fiat’s French appeasement game is means to an end

3 Jun 2019

Chairman John Elkann is mulling concessions to get the French state to greenlight the $35 bln Renault merger. A board seat for Paris and some cash shouldn’t risk planned cost savings, or Nissan’s assent. It’s a small price to pay for first-mover advantage in car consolidation.

Renault-Fiat merger savings matter more than price

31 May 2019

The French carmaker’s board may feel a proposal by its Italian-American rival takes advantage of a depressed share price. The bigger prize, though, is synergies worth 50% of combined operating profit. If those are credible, Renault should not quibble too much about valuation.

Viewsroom: A new game of carmaker matchmaker

30 May 2019

Fiat Chrysler spurned Peugeot by offering to merge with France’s Renault, which is itself joined to Nissan. How will the pairings play out, and what does it mean for the automotive sector? Plus: Why fossil-fuel giants like BP are painting themselves a pale shade of green.

Cox: Merger of equals is French expletive

30 May 2019

Fiat and Renault hope to succeed where other deals billed as partnerships failed to deliver on promises to France. From LafargeHolcim and Alcatel-Lucent to TechnipFMC and EssilorLuxottica, hopes have been dashed. Proving the exception requires an understanding of those failings.

Arduous road awaits refueled Chinese used-car app

29 May 2019

Uxin is issuing $230 mln of convertible bonds, including to existing investors TPG and Warburg Pincus. It follows a 70% loss in market value since last year's IPO. A short attack, China’s slowdown and generous terms make it hard to see the deal as accurately calling a bottom.

Fiat-Renault deal leaves Peugeot in the M&A dust

28 May 2019

The $21 bln auto group looks strategically boxed in now its Italian-American suitor may pair with French rival Renault. CEO Carlos Tavares could try Indian-owned Jaguar Land Rover or General Motors. Yet both Plan Bs lack the $6.3 bln of cost savings he’s missed out on with Fiat.

Nissan gets cheap ride on Fiat Chrysler bandwagon

28 May 2019

The Japanese carmaker could reap over 1 bln euros of savings if 20-year partner Renault merges with its Italian-American rival. It also would curb France’s influence, give Nissan a seat at a bigger table and buy it time to regroup. Diluted strategic clout is a small price to pay.

Fiat gets motors revving on auto consolidation

27 May 2019

The Italian-American car group proposed a 33 bln euro merger with Renault that should keep Nissan warm, please the French state and give the Agnelli family a chunk of cash. More importantly, it unlocks a 5 bln euro bonanza of cost savings that will put industry rivals on notice.

Car industry second-stringers lock arms to compete

26 May 2019

Renault and Fiat Chrysler are crafting an alliance that could let them cut costs, pool technology and better bargain with rivals. Even without merging, savings could be worth more than Renault’s 15 bln euro market value. Former Fiat boss Sergio Marchionne’s dream is coming true.

Nissan chief makes useful scapegoat for everyone

17 May 2019

Hiroto Saikawa may stay longer than expected at the $30 bln Japanese carmaker. Nissan is in shambles, but there's a case for letting him clean up the worst of it, then hiring a more charismatic successor. If he makes things worse, Renault has a stronger argument for merging.

Nissan tough-guy defence looks shaky

14 May 2019

The Japanese car giant resisting a merger with Renault said operating profit fell 44% this year, and predicted more pain ahead. CEO Hiroto Saikawa says this is "rock bottom", but the dismal outlook might see shareholders warm to a deal, or demand new management.

German $6 bln flop shows private equity’s dilemma

14 May 2019

Hellman & Friedman and Blackstone axed a takeover of listings group Scout24, after too few investors accepted. Rising valuations for peers like Auto Trader made the offer look stingy. Buyout groups want assets that promise growth, but frothy markets mean they’d have to overpay.

Nissan could easily tempt a bold activist

13 May 2019

The $31 bln carmaker is resisting deal talks with Renault. An arm’s-length arrangement favoured by boss Hiroto Saikawa will only weigh on Nissan’s value. Pushy investors have been chipping away at corporate Japan. One able to handle the politics could help make the case for M&A.

Toyota and Honda may want to rev up in China

8 May 2019

The Corolla maker’s operating profit grew a mere 2.8 pct in its latest fiscal year. Toyota’s outlook is also modest while rival Honda cut sales forecasts across the board. The Chinese market, though struggling now, could yet provide some refuge from Donald Trump’s trade warpath.