Manufacturing

Elon Musk’s bully pulpit is coming into focus

13 Aug 2024

The Tesla boss’ two-hour online chat with Republican candidate Donald Trump was a mess. Yet it shows how his web of infrastructure-like businesses, from rockets to energy storage, hold growing sway in the political arena. The result may be a less-than-virtuous cycle.

Flying PIIGS nations stir rethink in Europe’s core

12 Aug 2024

Former crisis economies like Spain, Greece and Italy have outpaced France and Germany by up to 20% since the pandemic. Lower exposure to manufacturing, a tourism boom and Brussels funds all helped. The role reversal may push Berlin to tolerate looser fiscal and monetary policy.

Boeing’s new CEO has vital copilot training to do

31 Jul 2024

The $120 bln plane-maker recruited former Rockwell Collins boss Kelly Ortberg to lead a tortuous turnaround. His engineering and aviation experience will help, as should some newly hired deputies. Along with the many operational challenges, a solid succession plan is a priority.

Carmakers drive efficiency hopes into a ditch

25 Jul 2024

The shares of carmakers Nissan and Stellantis fell around 7% after weak results. The tough US market is hurting sales, erodes the European group’s high margins and hinders its Japanese peer’s turnaround. Unsold cars and cautious consumers mean any recovery will take time.

Porsche looks stuck in rival Ferrari’s slipstream

24 Jul 2024

The 64 bln euro group’s shares have stalled since a 2022 float, and its valuation trails the Italian group by miles. Competition in China and production snafus may hold it back. The risk is that investors value the 911 maker like a normal carmaker, rather than a luxury group.

Donald Trump might be bad for EVs, good for Tesla

23 Jul 2024

The electric-car giant’s US sales are down and rivals are rising. Yet boss Elon Musk has thrown in with Trump, whose vow to end government support could crimp EV sales by 27%. Thing is, that hurts others more. For Tesla, maintaining dominance as it pushes beyond cars matters.

Boeing and Airbus headwinds are hard to escape

23 Jul 2024

The troubled US jet maker and its European rival aren’t delivering as many planes as customers want. On this Exchange podcast, AirInsight co-founder Addison Schonland explains how some problems stretch back to Covid, whether a third player can break the duopoly, and much more.

Apple’s India ascent is a salve for China woes

19 Jul 2024

The iPhone-maker’s sales in the South Asian country surged to $8 bln thanks to a luxury boom. That pales next to the $73 bln of revenue from the People’s Republic, but stiff competition and sluggish consumption there are a headache. That makes India increasingly vital for Apple.

Boeing CEO hunt involves checking many boxes

17 Jul 2024

Repairing the battered jet-maker is a once-in-a-career challenge. Dave Calhoun’s successor will have to bolster cash flow, reduce factory snafus and design and fund a better plane. They’ll need precision, tech smarts and, crucially, a willingness to gamble their reputation.

Trump lays bare TSMC’s inherent vulnerabilities

17 Jul 2024

The presidential candidate complained Taiwan took America's chip business and is taking subsidies. He wants it to pay for US defence too. For now, the high exposure of the island's $840 bln semiconductor giant to both Washington and Beijing is a dampener on its AI fortunes.

EU’s China trade weak spots hide in plain sight

9 Jul 2024

Beijing may retaliate after Brussels imposed tariffs on Chinese-made electric vehicles. Of the 5,000 product groups the People’s Republic imports from the EU, many are too crucial or too small to bother with. But luxury goods, petrol cars and some foods are plausible targets.

Boeing’s future CEO has same mess, different day

8 Jul 2024

The $113 bln jet maker will plead guilty to criminal charges and pay a fine related to fatal crashes. Extra cash pledged for safety might not dent the entrenched duopolist’s earnings. Problem is, without forced improvements, the controversy awaiting Boeing’s next boss continues.

Northvolt flags European batteries’ growing pains

5 Jul 2024

The $12 bln Swedish maker of devices to power electric cars has lost a contract with BMW, one of its own backers. Brussels would love domestic players to cut European automakers’ reliance on China. Yet the EU’s conflicting strategies and foreign competition mean progress is slow.

Smith & Nephew faces long and painful activist fix

4 Jul 2024

Cevian has taken a 5% stake in the $11 bln underperforming London-listed medical equipment maker. Curing its depressed share price will require deep operational surgery. While that may take time, a breakup could be a second treatment further down the line.

Bosch’s Whirlpool bet may end in rinse cycle

4 Jul 2024

The German group is eyeing the struggling $6 bln US home appliance maker, Reuters says. Expanding stateside makes sense given growth in Bosch’s main European units is slowing. But its target may be just as tricky if interest rates and inflation keep hammering US consumers.

Spirit doesn’t deserve Boeing’s cash

25 Jun 2024

Separating the supplier from the aircraft maker in 2005 benefited neither, so a deal to reunite them makes sense. Spirit’s shareholders probably don’t want Boeing’s stock. But the target’s woes compounded the acquirer’s problems. Ties that bind the two leave Spirit few options.

Airbus hit leaves investors flying without a radar

25 Jun 2024

The $110 bln planemaker’s shares fell 11% after it said that engine shortages scuppered its delivery target. The group is struggling to capitalise on rival Boeing’s woes. Supply-chain uncertainty is also stopping the wider sector from putting the pandemic in the rear-view mirror.

Boeing is just too big to jail

24 Jun 2024

The US government may pursue criminal charges against the $105 bln planemaker for lapses related to two fatal crashes. But Boeing’s importance as an exporter and defense contractor takes stiff penalties off the table. It’s the unhappy cost of nurturing national champions.

Elon Musk’s mathiness strays further from reality

18 Jun 2024

His latest theorem is that Optimus robots can make Tesla worth $25 trln, or a quarter of today’s global GDP. At 76 times expected earnings, investors clearly allow some latitude with the CEO’s calculations. The ever-odder numbers, however, are now off by orders of magnitude.

CEO pay is hidden factor in US relisting trend

29 May 2024

Plumbing supplier Ferguson almost doubled its boss’s compensation after moving to New York, while $55 bln CRH is reviewing its remuneration after switching too. It’s not something boards like to talk about. But investors might support US-style pay if it attracts the best talent.