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A New Partner for Fiat Chrysler? Peugeot Says Maybe

Peugeot family suggest FCA is a possible mate.

by on Mar.19, 2019

Could Fiat Chrysler be a good fit with PSA Groupe? A member of the Peugeot family says yes.

The late Sergio Marchionne spent much of his tenure searching for a partner for Fiat Chrysler, and now it appears a new mate for FCA is in the picture and creating buzz that Marchionne likely would have enjoyed: Peugeot.

Robert Peugeot, president of Peugeot family holding company FFP, told French daily Les Echos he would support a new deal, suggesting Fiat Chrysler would be among the potential partners.

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“With them, as with others, the planets could be aligned,” he was reported as saying about a potential merger. (more…)

SEC Says Musk’s Response to Lawsuit “Borders on the Ridiculous”

Regulators tell court Tesla CEO failed to clear a single tweet with automaker per settlement.

by on Mar.19, 2019

Tesla CEO Elon Musk shown during last week's unveiling of the new Model Y.

Federal regulators have shot back at Tesla CEO Elon Musk in their battle over a contempt-of-court lawsuit, claiming the 47-year-old executive’s legal argument “borders on the ridiculous.”

The case stems from a tweet Musk filed last month declaring that Tesla would produce 500,000 vehicles this year. The Securities and Exchange Commission considered that “material” guidance which, under terms of a separate case last year, required the CEO to first get the approval of the company. But, the SEC said in a new filing, Musk has not cleared a single tweet with Tesla as he had agreed to.

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The lawsuit is being heard by U.S. Judge Alison Nathan who could hold Musk in contempt and levy fine or other forms of punishment. The Tesla executive was already forced to relinquish his post as chairman and could now be removed as the automaker’s chief executive officer.

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SEC Suing VW, former CEO, for ”Massive Fraud” in Emissions Cheating Scandal

Lawsuit "legally and factually flawed," the automaker responds.

by on Mar.15, 2019

Former VW CEO Martin Winterkorn faces legal problems in Germany, as well as the U.S.

Volkswagen’s ongoing efforts to end a scandal triggered by its cheating on diesel emissions testing just took a turn for the worse, the Securities and Exchange Commission accusing both the automaker and former CEO Martin Winterkorn of committing a “massive fraud” on U.S. investors.

The automaker has acknowledged it used “defeat devices” to rig its diesel engines to illegally pass emissions tests and has so far laid out over $30 billion in fines and settlements. It is still facing other legal headaches, including a separate lawsuit by investors and ongoing investigations in Europe, one resulting in the arrest and jailing of the former CEO of its Audi subsidiary. But it responded to the latest challenge by declaring the SEC lawsuit “legally and factually flawed.”

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The SEC lawsuit, filed in San Francisco, claims the automaker and former CEO Winterkorn concealed the depth of the scandal – and the potential penalties – from both investors and federal regulators. The Thursday complaint noted that in the year before the cheating was discovered and publicized by the EPA Volkswagen issued $13 billion in bonds and securities in the U.S. Those value of those financial devices were directly impacted once the carmaker’s subterfuge was revealed.

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Renault Nissan Mitsubishi Alliance Reconfigures Board of Directors

Ghosn denied board meeting appearance by judge.

by on Mar.12, 2019

The leaders of Renault, Nissan and Mitsubishi celebrate the reconfiguration of the Alliance's board of directors.

Former Renault-Nissan-Mitsubishi Chairman Carlos Ghosn may be free from jail, the leaders of the three-headed monster don’t want him free to exercise any more influence over the company in his role on the board of directors.

Fortunately, a Tokyo court gave them what they wanted, banning the former boss from taking part in the meeting of the board of the directors.

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“Mr. Ghosn is disappointed that the Court denied his request to attend the Nissan Board of Directors meeting,” according to a statement issued by a spokesman.  (more…)

Lyft IPO Depends on an Autonomous Future

Driverless vehicles would eliminate its biggest expense.

by on Mar.04, 2019

Lyft continues to grow, but to accelerate that, the company is looking to raise big money through an IPO.

Running in the red every single quarter is normally not a good formula for success, though Tesla has shown that deficits aren’t necessarily verboten with investors. So, despite losing more than $2 billion during  the last two years alone, Lyft is preparing to go public.

The federal paperwork it filed last week is loaded with cautionary notes, and it appears to be asking potential investors to keep their eye on one development that could transform Lyft – as well as competitors like Uber and Waymo – into a cash cow: the arrival of driverless vehicle.

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“We have incurred net losses each year since our inception and we may not be able to achieve or maintain profitability in the future,” the company said in its filing with the Securities and Exchange Commission. (more…)

SEC Cites Musk for Contempt

“I do not respect the SEC.”

by on Feb.26, 2019

Tesla's Elon Musk if facing contempt charges over some tweets about the Tesla's production plans.

Tesla CEO Elon Musk’s fondness for tweeting has already caused him serious problems, from lawsuits to the loss of his job as the automaker’s chairman, but he now faces the possibility a federal court could hold him in contempt for violating a settlement reached last year over his claims Tesla was getting ready to go private.

The Securities and Exchange Commission claims Musk violated the $40 million agreement the two sides agreed to last September that led to Musk relinquishing his post as Tesla chairman and agreement to have his planned tweets reviewed by the company before posting them. Regulators say they are worried that, as was the case last year, Musk could be using social media to mislead investors.

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The new allegations come at a challenging time for both Musk and Tesla. The company has now delivered a profit for two consecutive quarters but has warned it faces the prospect of tighter finances for the rest of the year. It is struggling to build sales in China and other overseas markets. And the latest dust-up between Musk and the SEC raises the prospect the South African-born executive could be forced out of his remaining management role. (more…)

Musk Says Tesla to Have Driverless Car Ready This Year

CEO says regulators will determine when vehicle's can be self-driving.

by on Feb.21, 2019

Tesla CEO Elon Musk said the company's vehicles would be able to be run without a driver by the end of this year.

Elon Musk continues to push the narrative that Tesla Inc. will have vehicles ready to operate without a driver by the end of this year.

Tesla’s CEO made the claim during the company’s recent earnings call and repeated it on a podcast hosted by two executives at ARK Invest, which is an investor in Tesla.

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“I think we will be feature complete – full self-driving – this year,” Musk said. “Meaning the car will be able to find you in a parking lot, pick you up and take you all the way to your destination without an intervention, this year. I would say I am of certain of that. That is not a question mark.” (more…)

Amazon Becoming Lead Investor in Rivian

Rumored GM investment could yet follow.

by on Feb.15, 2019

The Rivian R1T pickup will boast 400 miles range, according to the company.

Just a week after announcing a major investment in an autonomous vehicle development company, online retailer Amazon said Friday it will become the lead investor in a new, $700 million round of financing for Rivian, the Detroit-based battery-electric company.

Rivian is in the final stages of developing two all-electric models, the full-size R1T pickup and R1S sport-utility vehicle. It is aiming to challenge not only electric vehicle rival Tesla but the established Detroit automakers that have long dominated the full-size pickup market.

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Rumors of a deal between Amazon and Rivian began to circulate earlier this week, though some reports had suggested that General Motors would also come up with some financing. Sources tell TheDetroitBureau.com that this remains a possibility and suggest that Rivian could have more announcements coming. The automaker has scheduled a news conference for the New York International Auto Show in mid-April. (more…)

Shake-Up and Setback for Ghosn

Former Nissan chief cuts legal team; likely to lose Renault payout.

by on Feb.13, 2019

Carlos Ghosn fired his legal team, replacing them with a lawyer known as "the razor."

Carlos Ghosn, the former Nissan chairman facing charges of financial corruption, has shaken up his legal team in an effort to reverse a series of setbacks that have resulted in his being held in solitary confinement in a Tokyo prison since last November.

Ghosn is replacing his lawyers with a new team led by a high-profile defense attorney known in Japan as “the razor,” for his ability to win acquittals in a number of high-profile cases. That’s relatively rare in Japan where prosecutors claim conviction rates of more than 90%.

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Separately, Renault is ready to scrap about $34 million in deferred pay and severance Ghosn stood to collect after tendering his resignation last month. Nissan’s French alliance partner is also expected to drop a two-year non-compete clause, which would free up Ghosn to join another automaker once released from Japanese prison, Reuters news service reported. (more…)

EV Truck Maker Rivian Reportedly in Talks with Amazon and GM

Deal could be announced this month, according to Reuters.

by on Feb.12, 2019

Rivian founder RJ Scaringe showed off the the R1T all-electric pickup at the LA Auto Show.

Battery truckmaker Rivian Automotive is reportedly in negotiations with both Amazon and General Motors on a deal that could be worth as much as $2 billion.

The deal would give the two companies a minority stake in Rivian, a start-up based in the Detroit suburb of Plymouth, according to a report on Reuters.

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The proposed deal could help GM, in particular, add a battery-electric pickup to its line-up, something archrival Ford Motor Co. has said that it is already working on. A senior executive at GM last month told TheDetroitBureau.com that the carmaker is “considering” an all-electric truck.

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