Roads & Transportation

Renault deserves its battered valuation

23 Oct 2018

The French carmaker trades at one of the lowest multiples in an unloved sector. Shrinking third-quarter sales show why that is merited. An alliance with Nissan and electric-vehicle investments offer glimmers of hope, but neither will turbo-charge shares in the coming year.

Volvo fumes are second hazard for truck investors

16 Oct 2018

The $31 bln Swedish group’s warning on engine emissions could scarcely have come at a worse time. Investors are already fretting that demand for commercial vehicles has peaked for the current cycle. When two truck-dashboard lights are flashing, the safest thing to do is bail.

Activists may soon arrive by truckloads to Germany

9 Oct 2018

Whether uppity investors will rattle the cages of VW and Daimler depends on how they separate their commercial-vehicles arms. Resorting to standard, crummy German governance through partial listings, rather than clean-break spinoffs, will earn them the enmity of investors.

TomTom is risky option on carmakers beating Google

27 Sep 2018

The $2 bln navigation group may sell a sideline business a week after key customer Renault said it would use Google Maps. After the sale, TomTom would look cheap – unless the search giant wipes the floor with rival mapmakers. The U.S. group’s track record makes that a dicey bet.

Market dominance defends China’s Didi from murder

29 Aug 2018

The $56 bln ride-hailing app is in big trouble after a driver killed a female passenger. With #MeToo gaining traction in China and an IPO in the pipe, the timing is terrible. Didi’s near-monopoly protects it from a shutdown, but tighter regulation could punish profitability.

Gig economy throws wrench into China labour policy

28 Aug 2018

App-based jobs are becoming controversial in the People's Republic, too. Factory strikes may be waning, but reports of worker protests involving startups like Meituan and Didi are rising. That's leaving Beijing stuck between two priorities: social stability and tech innovation.

Geely’s cruise-control ride is coming to an end

22 Aug 2018

Volvo's Chinese sister cranked out another solid set of results, with profit up 54 pct to nearly $1 bln. Margins expanded and its domestic market share grew. At nine times expected earnings, Geely fetches a premium to global peers. It’ll have to raise its EV game to justify it.

Vulnerable Toyota enjoys a moment in the sun

3 Aug 2018

Japan's largest automaker earned nearly $6 bln last quarter, a 7 pct bump. That’s a relief after Nissan, where a drop in U.S. sales weighed. Still, executives are right to strike a cautious tone while Trump's trade guns remain aimed at Tokyo: Toyota is less protected than rivals.

Ferrari proves it can run mostly on autopilot

1 Aug 2018

New CEO Louis Camilleri inherits a firm in fine shape from Sergio Marchionne. While FCA cut guidance after its ex-boss’s death, Ferrari posted strong results, even if it qualified its outlook as “aspirational”. The Italian supercar maker looks nonetheless poised to motor ahead.

Peugeot’s Opel repair job looks halfway complete

24 Jul 2018

CEO Carlos Tavares has restored Opel to profitability, just a year after buying it from GM. A 5 pct operating margin makes his long-term targets credible, at the risk of giving hostile unions a stronger hand. Still, Tavares’ cost cuts vindicate Peugeot’s premium valuation.

Toyota plots yet another jittery ride-hail route

13 Jun 2018

The Japanese carmaker is investing $1 bln into Asian startup Grab. It’s the latest in a slew of deals that mostly reflect manufacturer fears about where things are headed in autonomous driving and beyond. As GM’s fading Lyft alliance shows, though, the path is far from clear.

CEO exit takes Samsonite rebuttal only so far

1 Jun 2018

The $5 bln luggage-maker parted ways with its boss after a short-seller revealed he didn’t hold a doctorate despite sometimes being called “Dr”. Samsonite’s efforts to knock down other accounting and governance allegations could take longer after it lost the benefit of the doubt.

Greyhound owner’s turnaround faces lengthy delay

31 May 2018

Bus and rail operator FirstGroup’s CEO resigned and its shares fell after it reported a loss, due to competition from low-cost airlines. It can cut costs and sell assets, but tough markets and management upheaval don’t help. A sale looks easier, but may not deliver a good price.

Hyundai U-turn puts Asia investors in higher gear

21 May 2018

The South Korean conglomerate slammed the brakes on a $9 bln restructuring after investors revolted. It's a big step in a region where shareholders are often given short shrift. Alongside other recent upsets, Hyundai's is welcome evidence the balance of power is shifting.

VW’s new boss has $184 bln of low-hanging fruit

26 Apr 2018

CEO Herbert Diess kick-started an overhaul of the carmaker. Cutting jobs will be hard given VW’s union-heavy board. But by slashing the group’s excessive spending on materials like steel, Diess could squeeze suppliers instead. That would make a big difference to its thin margins.

Peugeot investors jump the gun on Opel turnaround

24 Apr 2018

The French carmaker’s shares trade at a premium to European peers despite its below-average operating margin. Investors are already counting on a turnaround at Opel, the loss-making business bought from GM last year. A German labour dispute means there’s room for disappointment.

India is prize worth keeping for Uber

20 Apr 2018

The ride-hailing giant says it won’t exit the market with a minority stake as it did in Southeast Asia and China. Uber has a narrower gap with local rival Ola and the country can serve as a good test-bed for new ideas. Without India, Uber would also look less global in an IPO.

Cox: Belt and Road paving way to worrying excess

17 Apr 2018

Hallmarks of speculative exuberance abound with China's plan to recreate modern Silk Road trade routes. There are fancy new banking jobs, silly conferences and creative investment ideas. The danger is the $1.5 trln initiative devolves into an epic era of capital misallocation.

Apollo’s Greyhound bet looks past UK politics

12 Apr 2018

Transport operator FirstGroup has rejected an approach from the U.S. buyout giant. The offer is bold given the UK backlash against rail privatisation. But the company’s American operations, including the iconic long-haul buses, help support its 1.3 bln pound market value.

Meituan deal sets pace in Chinese bicycle-sharing

4 Apr 2018

The food-delivering, ticket-booking, ride-sharing app is buying Mobike for $2.7 bln. Given the competitive and cash-burning realities, investors should be relieved at the sale. For rival Ofo, which just raised nearly $900 mln more from Alibaba and others, the riding gets tougher.