Detroit Bureau on Twitter

Archive for the ‘Investors’ Category

“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…)

VW Earnings Strong Despite Hit from Diesel Scandal

Credit largely goes to higher-priced crossovers like VW Atlas.

by on May.02, 2019

VW's utility vehicles now account for 23% of group sales, with a target of 20% by late 2020.

Volkswagen’s earnings took a tumble during the first quarter, largely due to a 1 billion euro, or $1.1 billion, set-aside to cover legal costs related to its ongoing diesel emissions scandal.

But at 3.05 billion euros, or $3.41 billion, after-tax profits came in close to last year’s 3.30 billion euros figure from the January-March quarter, with profit margins actually rising across the company’s 12 different automotive brands.

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

News You Can Trust!

It was a “very strong first quarter,” said Chief Financial Officer Frank Witter, and “to an extent better actually better than we expected.”

(more…)

Tesla Looking to Raise More Than $2 Billion

Company using a mix of stock and new debt to get cash.

by on May.02, 2019

Tesla is looking to add to its cash reserves to ensure the Model Y hits the market early next year.

Less than two weeks after saying Tesla likely would not seek to raise more money even though the time was right, CEO Elon Musk led the charge to raise $2.3 billion to bolster the California-based EV maker’s cash reserves.

The company launched issues of new shares and debt worth about $2.3 billion on Thursday, with Musk adding $10 million of his own as investors and analysts wondered how the company would be able to meet all of its goals without the extra cash.

Business News!

In a filing with the Securities and Exchange Commission filing, the EV maker said it plans to raise $650 million through new shares and tap the debt markets for an additional $1.35 billion. The underwriters have the option to buy an additional 15% of each offering, which would bring the total to $2.3 billion. (more…)

Faraday Future Rescued — Again

But will the latest deal finally break start-up’s string of bad luck?

by on May.01, 2019

Faraday claims the latest funding should finally help it move its FF91 model into production.

It’s often said that cats have nine lives. Faraday Future must be the automotive equivalent of a feline considering the number of times the battery-car start-up has been bailed out.

Months after laying off the majority of its workforce and slashing pay for those remaining, the California-based carmaker has been tossed yet another lifesaver, this time in the form of a new, $225 million bridge loan from Birch Lake Fund Management LP. That comes barely a month after Chinese videogame company The9 Limited agreed to pump in $600 million in three tranches.

Plug In With a Free Subscription!

That’s enough, the company claims, to help it get its first product, the 1,050 horsepower FF91 ready for production while moving forward with the development of a more affordable model dubbed the FF81.

(more…)

Tesla May be Looking to Raise More Capital

Musk, SEC reach deal on Twitter use.

by on Apr.29, 2019

Tesla CEO Elon Musk said now was a good time to explore raising capital, but then suggested the company wouldn't.

Tesla CEO Elon Musk’s passing comment about getting additional money for the electric vehicle maker during the company’s earnings call last week may have had more meaning behind than expected.

During the call, during which the company announced it lost $700 million during the first quarter, Musk was asked about the possibility of raising more money for the company.

News You Can Trust!

“There is some merit to raising capital,” Musk said. “It’s probably about the right time.” (more…)

Daimler Earnings Fall 37% as Mercedes Sales Stumble

U.S. sales fall 9% during the quarter.

by on Apr.26, 2019

Daimler AG Chairman Dieter Zetsche said the company's earnings performance was unacceptable during earnings meeting recently.

Daimler AG’s income dropped by double digits in the first quarts as sales of Mercedes-Benz vehicles fell in markets around the world, reducing the unit’s earnings before interest and taxes by 37%.

The adverse development at Mercedes-Benz led to a decline of 13% in Daimler AG net income for the quarter as the company’s total revenues remained flat. EBIT was down 15% despite improvements in the earnings of Daimler Financial Services. Daimler Trucks, despite a modest sales increase, saw its earnings decline due to an adverse swing in exchange rates.

Business News!

Dieter Zetsche, chairman of Daimler’s board of management, said the company had to do better. (more…)