Detroit Bureau on Twitter

Archive for the ‘Investors’ Category

“Hardcore” Belt-Tightening a Must, Says Tesla’s Musk

The “only way for Tesla to become financially sustainable.”

by on May.17, 2019

Tesla's Elon Musk has ordered employees to rein in spending on virtually everything.

Tesla will need to engage in some “hardcore” cost-cutting, CEO Elon Musk told employees in an e-mail late Thursday, a move that comes in the wake of an unexpectedly severe first-quarter loss.

The automaker earlier this month was able to raise $2.7 billion through a combination of stock and debt offerings, but investors have become increasingly wary of the challenges that face the automaker – Tesla facing substantial debt repayments on top of the costs involved in the development of an array of new products and a new plant in China.

Breaking News!

The latest cash infusion, according to Musk, will only let it go for another 10 months without getting back into the black, he wrote, which “is why, going forward, all expenses of any kind anywhere in the world, including parts, salary, travel expenses, rent, literally every payment that leaves out bank account must (be) reviewed.”

(more…)

Volkswagen Commits to Zero Carbon Dioxide Emissions by 2050

CEO Diess tells shareholders company outlook is "good."

by on May.15, 2019

Volkswagen AG CEO Herbert Diess told shareholders that the company's outlook was "good."

Volkswagen AG easily beat back a challenge from dissident shareholders, revealed additional details of a broad switch to electric vehicles and the efforts to become carbon neutral by the middle of the century.

Shareholders also approved a restructuring plan that will make the company leaner and more responsive, Herbert Diess, CEO of VW AG, told shareholders.

Business News!

“In a nutshell: the outlook for the Volkswagen Group is good. Our core product – the automobile – remains a key economic and technological pacesetter. It continues to create innovation, growth and prosperity in many regions of the world. And it keeps society mobile,” Diess said. (more…)

EU Auto Tariffs Deadline Fast Approaching

European and American automakers alike hope for delay.

by on May.15, 2019

President Donald Trump has until May to either enact new tariffs on EU autos or order a delay.

With one trade war already underway, the White House could kick off another battle this weekend as the May 18 deadline nears for Pres. Donald Trump to decide whether to impose tariffs on European auto imports.

Any move would follow the completion of a Commerce Department study completed last February that concluded auto imports pose a threat to America’s national security. The president has not given a clear indication of how – or whether – he will respond as a 90-day deadline approaches, though he has had harsh words about European automakers in the past, at one point threatening to banish all Mercedes products from the streets of his home city, New York.

Breaking News!

Auto imports from Europe totaled $56.4 billion last year, according to Commerce figures, Germany responsible for the bulk of that. The risk of new tariffs sent shares of German manufacturers BMW, Daimler and Volkswagen reeling in recent days. But even U.S. automakers, as well as suppliers and dealers, have been pressing the Trump Administration to hold back on launching a new front in the trade war.

(more…)

Hyundai/Kia Partnering up with Croatia EV Supercar Maker Rimac

Croatian company positions itself as a major supplier of electrification technology and components.

by on May.14, 2019

Rimac founder and CEO Mate Rimac celebrates with Hyundai's Euisun Chung their new alliance.

Alliances and joint ventures are becoming as much the norm as the exception in today’s auto industry, but Hyundai Motor Group just entered a particularly strange-bedfellow sort of relationship, investing nearly $90 million in Rimac, the Croatian manufacturer of battery-electric supercars.

The Korean parent of the Hyundai and Kia brands will not only invest 80 million euros in Rimac Automobili but also establish a technology partnership that will put some high-performance electric vehicles in their future line-ups, as well.

Breaking News!

“Rimac is an innovative company with outstanding capabilities in high-performance electric vehicles,” said Euisun Chung, Executive Vice Chairman of Hyundai Motor Group. “Its startup roots and abundant experience collaborating with automakers combined with technological prowess makes Rimac the ideal partner for us. We look forward to collaborating with Rimac on our road to Clean Mobility.”

(more…)

Uber Stock Keeps Falling After Stumbling Out of Gate

CEO Khoshorashi tells employees to hang tough.

by on May.13, 2019

Uber CEO Dara Khosrowshahi asked employees in an email to hang in the as the stock price fluctuates.

Ride-hailing leader Uber saw its shares, which hit the market last week, continue to fall today into the $37 range after stumbling out of the gate.

Uber priced its initial public offering at the bottom end of the range at $45 per share after watching rival Lyft’s offering decline substantially after its debut earlier this year. The stock fell immediately when it debuted Friday, closing at $39.

Business News!

“Pricing a deal is an art not a science,” said CEO Dara Khosrowshahi while interviewed on CNBC.  (more…)

“You Want to Be There” When the EV Market Takes Off, Ford CEO Hackett Tells Shareholders

The upcoming “Mustang-inspired,” all-electric SUV will “reconceptualize’ the way cars are designed.

by on May.09, 2019

Ford is counting on its "Mustang-inspired," long-range electric SUV, codenamed Mach1, to help it plug into the emerging BEV market.

Ford Motor Co. will launch its “Mustang-inspired,” crossover later this year, its first long-range battery-electric vehicle, and CEO Jim Hackett told shareholders that while the EV market has been slow to build momentum, “When it happens you want to be there.”

Hackett focused a lot of his energy on describing the automaker’s electrification plans during Ford’s first “virtual” shareholders meeting on Thursday, clearly hoping to build support for a program in which it plans to invest $11 billion by 2022, more than double what Hackett’s predecessor, Mark Fields, had committed to spend by 2020. All told, Ford has laid out plans to roll out 40 hybrids, plug-ins and pure battery-electric vehicles, or BEVs.

http://www.thedetroitbureau.com/about/subscribe

Insight!

The question is whether there will be a market for those vehicles, especially when considering the generally tepid response for earlier Ford battery-based models like the C-Max Energi, a PHEV, and the Ford Focus Electric, a BEV. (more…)

Pics, Details Leak as VW Readies its New, All-Electric Hatchback, the ID

Battery-electric model clearly influenced by design of VW’s familiar Golf.

by on May.07, 2019

An image inadvertently leaked by VW's Dutch arm shows the ID.3 on the road.

Volkswagen is getting ready to roll out its first long-range electric vehicle and it appears someone working on the German automaker’s Dutch YouTube channel got a little too eager, letting both images and details about the battery-electric vehicle leak out early.

The hatchback will become not only the first all-electric Volkswagen to deliver more than 200 miles per charge but also the first to be based on the automaker’s all-new MEB platform, a modular architecture expected eventually to be shared by dozens of different models that will be sold across VW’s various brands.

Breaking News!

Expected to start at around 30,000 euros, or $33,530 at current exchange rates, VW will begin taking order on May 8, though deliveries aren’t expected to begin until early autumn 2019.

(more…)

BMW Earnings Hit Big by Anti-Trust Probe

No plans to purchase stake in rival Daimler, says CEO.

by on May.07, 2019

BMW's earnings fell despite a global increase in sales.

BMW earnings tumbled 75% for the first quarter, its automotive earnings plunging into the red, due to a $1.6 billion set-aside to cover fines resulting from a European antitrust probe, as well as higher investments in autonomous and electrified vehicles.

BMW actually saw an increase in vehicle deliveries during the first quarter of the year, but revenues slipped 1% to 22.5 billion euros, or $25.1 billion. Meanwhile, the anticipated antitrust fine and other factors drove group earnings down to 561 million euros, or $627 million.

Breaking News!

Separately, the Bavarian automaker’s CEO Harald Kruger said he “can rule out” the possibility of taking even a small stake in its German rival Daimler, despite the two companies announcing a series of recent joint ventures, including one designed to share self-driving vehicle development efforts.

(more…)

Tesla Increases Capital Bid – and Investors Eagerly Comply

EV automaker boosts plan to $2.4 billion – and could go even higher.

by on May.03, 2019

Why is this man smiling? Tesla CEO Elon Musk finally has had a good week.

After long dismissing the need to raise additional capital, Tesla has not only gone back to investors with its hands out but been rewarded with about 25% more fresh funding than it had said it would seek just a matter of days ago.

In all, the financially stretched EV automaker will be able to add at least $2.35 billion to its cash horde, and the figure could grow to around $2.7 billion should underwriters exercise their right to purchase even more stock and bonds.

Breaking News!

The news translated into a solid bounce for Tesla stock, as of mid-afternoon Friday, giving some positive momentum after months of decline. But with shares hovering under $245, the Silicon Valley-based company is still well off from its $319.88 high this year, never mind a 52-week peak of $387.46.

(more…)

Product Launches Hammer FCA’s Q1 Earnings

But Ram pickup sales provide a cushion.

by on May.03, 2019

CEO Mike Manley needs to prove he can maintain the pace set by his former boss, Sergio Marchionne.

Fiat Chrysler Automobiles reported profits dropped 41% in the first quarter as a slump in sales in key markets cut the company’s revenues by 5 percent.

The automaker attributed the decline to the normal production challenges related to an array of new product launches in North America, as well as pricing pressure in China and South America.

Financial News!

FCA CEO Mike Manley, however, reaffirmed the company’s guidance for the full year. “We expect earnings to grow in the following quarters,” he said as FCA completes the launch of the new Jeep Gladiator and the Ram Heavy Duty pickup truck.

(more…)