IOB - IOB Delayed price. Currency in EUR
+0.25 (+0.88%)
At close: 6:55PM BST
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Previous close27.83
Bid27.65 x 0
Ask28.23 x 0
Day's range27.15 - 28.58
52-week range21.02 - 60.00
Avg. volume1,669,927
Market capN/A
Beta (5Y monthly)N/A
PE ratio (TTM)N/A
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Forward dividend & yieldN/A (N/A)
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  • Daimler says expects Mercedes to post positive first-quarter margin

    Daimler says expects Mercedes to post positive first-quarter margin

    Daimler expects to post a positive margin on Mercedes-Benz passenger cars and vans in the first quarter, thanks to rebounding sales in China and solid demand in the United States, Chief Financial Officer Harald Wilhelm said on Wednesday. Sales of Mercedes-Benz passenger cars in March in the United States showed no corona impact thanks to demand for sports utility vehicles, Wilhelm said, adding that sales in China had rebounded.

  • Merkel’s Government Approves Tighter Rules on Takeovers

    Merkel’s Government Approves Tighter Rules on Takeovers

    (Bloomberg) -- The German government agreed to tighten protections for companies from foreign takeovers as the coronavirus pandemic engulfing the global economy raises concerns about the vulnerability of key industries.Angela Merkel’s cabinet approved the measures -- which apply to takeover bids from outside the European Union -- on Wednesday. They will enable the government to block acquisitions that present “potential interference,” a lower threshold than existing rules that envisage a security threat.“We’re going to implement these rules so that we can protect our critical infrastructure more securely than we have before,” Economy Minister Peter Altmaier told reporters in Berlin. As well as shielding producers of medicine and protective gear, the new rules will also protect German companies active in the energy sector and the digital economy, he said.As the outbreak batters the global economy, and as Germany’s is poised to contract almost 10% in the second quarter, Merkel’s government has sharpened its focus on companies critical to national interests that could fall prey to foreign takeovers. The European Commission has also issued guidelines on enacting bloc-wide rules meant to prevent foreign direct investments from threatening national security.Without identifying potential buyers, Altmaier said authorities are already scrutinizing a concrete attempt to purchase a German company involved in “medical production,” and examining others. “There are a number of other cases that we are monitoring very closely, in which we’re determined to stop potential takeovers,” he said.The coronavirus crisis has raised the stakes globally for deals in the medical industry. Last month German biotech company CureVac AG denied speculation that the U.S. government tried to buy the business or its technology amid an intensifying race to produce a vaccine for the disease.Plummeting ValuesAs companies contend with plummeting market values -- Germany’s DAX index is down more than 20% so far this year -- Chinese firms in particular are getting ready for discount deals in Europe, exploiting the turmoil in which businesses are scrambling for cash to stay afloat.Bankers have recently seen a spike in requests from Chinese firms and funds for proposals on targets in Europe, according to people familiar with the potential deals. Many potential acquirers are state-owned enterprises, they said.That scenario will inevitably set up a conflict with European governments, who even before the pandemic were embroiled in a debate over the bloc’s vulnerability. That debate has been fueled by the lack of national or European champions to compete with rivals backed by the Chinese government.Germany started adopting more protectionist measures after China’s Midea Group Co. swallowed robot maker Kuka AG in 2016. Two years later, Merkel’s cabinet blocked a Chinese bid for the first time by vetoing the potential purchase of machine-tool manufacturer Leifeld Metal Spinning AG.Carmakers Zhejiang Geely Holding Group and BAIC Group also own large stakes in rival Daimler, in what is seen as the most prominent Chinese investment in Germany. Over the past five years, Chinese companies have announced $21.9 billion of acquisitions in Europe, according to data compiled by Bloomberg.The government has focused its efforts on thwarting attempts to seize or gain leverage over German companies with crucial know-how for critical infrastructure and the digital economy, such as artificial intelligence and battery cell production. The current initiative, a tightening of Germany’s Foreign Trade Law, will restrict the access that bidders have to companies’ know-how while an acquisition is being reviewed.Not everyone welcomed the tighter rules. “If we regulate flows of foreign capital too severely, we risk restricting growth and employment prospects within Germany,” said Volker Treier, head of foreign trade at the DIHK industry group.(Adds Chinese bids in 10th paragraph, comment from DIHK in last)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Most U.K.-Made Ventilators Won’t Arrive Ahead of Virus Peak

    Most U.K.-Made Ventilators Won’t Arrive Ahead of Virus Peak

    (Bloomberg) -- When Britain’s government issued an urgent call to industry for thousands of hospital ventilators, more than 5,000 companies offered to help. Coronavirus infections are expected to peak next week and there’s little to show for their effort.Significant deliveries from the firms are still weeks away, and the embattled National Health Service has resorted to foreign imports and loans from the armed forces and the private sector to double its ventilator count to around 10,000. While the national lockdown appears to be slowing the spread of Covid-19, the NHS may need as many as 8,000 more of the devices, according to Health Secretary Matt Hancock.​The government is under intense pressure to solve Britain’s shortage of the machines that are vital for treating critically ill patients. It already spurned an offer to join a European Union program for procuring ventilators, initially stating it was no longer a member of the bloc and could source them locally, before backtracking and saying it had missed the email inviting participation. EU leaders are struggling to coordinate a response to the virus; last night they were unable to agree on a 500 billion-euro ($543 billion) stimulus package.​It’s not that U.K. Plc can’t do the job: The machines are seen as relatively straightforward to make and much of industry has been sitting on its hands since the economy tanked. The problem is that vacuum cleaner maker Dyson Ltd., engineering contractor Babcock International Group Plc and other newcomers to the business need their designs to be fully tested and approved.It can take months for the U.K. Medicines & Healthcare Products Regulatory Agency to sign off on sensitive medical machinery. The process can be expedited, but still takes valuable time to ensure patients’ safety.“It’s a race against the clock,” said Derek Hill, a professor specializing in medical devices at University College London. The regulator is “literally working all hours making this happen fast.”For now, the supply of ventilators from British manufacturers is tiny. The NHS expects to receive 30 locally-made machines this week, compared to 300 sourced from China over the weekend.Department of Health and Social Care officials say they are confident there will be enough ventilators to meet demand, given the steps being taken to increase the number available, and as long as people continue to stay at home to reduce the spread of the virus.Pistons, TurbochargersIn the short run, the greatest hope lies with consortium Ventilator Challenge UK, which includes Meggitt Plc, Airbus SE, GKN Ltd, McLaren Automotive Ltd and Rolls-Royce Holdings Plc. They plan to churn out 1,500 ventilators a week using designs from Penlon Ltd. and Smiths Group Plc, two medical device makers that can currently only make about 50 to 60 of the machines per week on their own. The group already has an approved ventilator from Smiths. But it’s still closing in on final approval for the other, and its factories and supply chains are in need of re-calibrating, so large deliveries are unlikely before the end of April.​A breathing aid developed by engineers from the Mercedes Formula One team and University College London has been approved for use. It’s being manufactured at a rate of as many as 1,000 a day using machines that would normally produce racing car pistons and turbochargers. It’s not as sophisticated as a ventilator, but it can help reduce the need for those devices.Companies such as Babcock -- which has a government contract to make 10,000 of its Zephyr Plus ventilators -- face a longer wait for approval. They may end up being useful in a potential second or third wave of infection.Prime Minister Boris Johnson, who is in hospital with the disease, set a challenge last month to source 30,000 ventilators.The government now says fewer will be needed because lockdown measures have slowed the virus’s spread. The NHS has 2,000 extra ventilators on standby, with 1,500 more due to arrive by the end of the week, Hancock said on Sunday.(Updates with news on EU fiscal stimulus in third paragraph; adds context)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    The World Needs Ventilators. Here's the Snag

    (Bloomberg Opinion) -- In the face of a global health emergency, automakers are stepping in — or being summoned — to make ventilators. Can they manufacture at the scale required, with the world needing a 10-fold increase in production to cope with the surge in coronavirus infections? It will be a severe challenge.Car companies such as Ford Motor Co., General Motors Co. and Toyota Motor Corp. are a natural choice to mass-produce these medical devices. They churn out millions of vehicles every year, procuring and bringing together hundreds of parts from around the world at rapid speed. Ventilators needs anything from 400 to 1,000 components from tubes and sensors to pressure valves, humidification systems and filters. There is significant overlap between the engineering of ventilators and cars, which both bring together electronic, electric, hydraulic and mechanical aerodynamics expertise.The parts are mostly different, though. The constituents of a ventilator come from dozens of countries and through as many as nine layers of suppliers. At the same time, some specialty components, such as oxygenation membranes needed for mechanical ventilation, are made by only a few precision manufacturers— meaning that any attempt to effect a rapid expansion in global production is constrained by the ability of these companies to ramp up.The same disruption the coronavirus pandemic has wrought on automakers’ global supply chains will apply equally to their efforts to make ventilators. In normal times, such a switch might be feasible. However, automakers are only in this position because conditions are so abnormal. The coronavirus has wreaked havoc on supply chains. Logistics, transportation and manufacturing have been upended. Retooling factories will take time and the disease won’t wait.That makes the task even more formidable for companies such as Ford and GM, which have faced pressure from President Donald Trump to move more quickly and repurpose factories to turn out ventilators. Trump invoked the wartime Defense Production Act last week to help ventilator manufacturers procure supplies. Still, the administration’s effort doesn’t cover the full chain from raw materials to distribution, as my colleague Brooke Sutherland has written. The U.S. may need as many as 960,000 ventilators, the Society of Critical Care Medicine estimates, versus 200,000 that are available. India’s requirement is as many as 220,000 compared with an estimate of about 25,000 now, according to the Brookings Institution. These numbers depend on the speed of the disease’s spread and the severity of infections, and can change rapidly. Big manufacturers currently produce around 200 ventilators a week and need to make 10 times that number, according to Bloomberg Intelligence industrials and medical equipment analyst Nikkie Lu. The Indian government is urging local automakers to get involved. In the U.K. and Europe, the likes of McLaren Automotive Ltd. and Mercedes AMG High Performance Powertrains Ltd. are helping out.GM is sourcing 419 direct parts from 91 so-called tier-1 suppliers for ventilators made at its Kokomo plant in Indiana. While a significant portion are produced in North America, there are suppliers in more than 10 countries including China. GM is helping increase sourcing capacity within the supply chain of its ventilator partner Ventec Life Systems Inc., and is having to develop new sources of parts in its own.While China is reopening for business and putting a priority on medical equipment, other countries are in lockdown. That’s making it increasingly tough to get the right products to manufacturers, particularly where operations are dispersed. For example, New Zealand ventilator maker Fisher & Paykel Healthcare Corp. sources components from China for manufacture at home and in Mexico. ResMed Inc., a San Diego-based company that makes a ventilator used during the severe acute respiratory syndrome outbreak, does most of its manufacturing in Singapore and Sydney.There are other obstacles. This is a niche industry that’s complex and highly regulated. China has more than 20 mechanical ventilator makers that produce about 2,200 machines a week or about a fifth of total global output; only eight are certified to sell in Europe. Medical devices need to be produced in sterile and clean-room certified conditions. That means converting factories to scale up isn’t a simple matter. In recent weeks, some countries have complained of faulty tests and medical equipment coming from China. Officials there banned the export of medical supplies that don’t meet China’s standards.Then there’s protectionism. Trade barriers are going up in dozens of countries as the world moves into survival mode. Having shipped key medical supplies abroad going into the crisis, the U.S. has now joined the trend, using the defense act to order 3M Co. to halt exports of its protective masks to some nations and prioritize sales to the federal government. The U.S.-China trade war had already showed up the fragility of global supply chains. Covid-19 and the rush to make ventilators will be a telling marker of how effectively they still function. Conditions could hardly be more difficult for such a critical test. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • German car industry's export prospects bleakest since 2009
    Yahoo Finance UK

    German car industry's export prospects bleakest since 2009

    Plants shuttered, workers stood down, and a lack of demand has carmakers feeling pessimistic.

  • German carmakers had crisis call with Merkel - Handelsblatt

    German carmakers had crisis call with Merkel - Handelsblatt

    The bosses of Volkswagen , BMW and Daimler held a crisis call with German Chancellor Angela Merkel on Wednesday to discuss how to get production restarted, Germany's Handelsblatt newspaper reported on Thursday. Carmakers have halted production at some sites as governments around the world have imposed lockdowns on their populations in response to the coronavirus outbreak. Volkswagen Chief Executive Herbert Diess last week said the carmaker might have to cut jobs if the pandemic is not brought under control as it is still spending about 2 billion euros ($2.18 billion) a week.

  • Germany Expects Economy to Shrink More Than 5% on Virus Hit

    Germany Expects Economy to Shrink More Than 5% on Virus Hit

    (Bloomberg) -- Germany faces a deeper recession than during the financial crisis, as the coronavirus pandemic shuts down large parts of Europe’s biggest economy.The impact on 2020 growth from measures to contain the virus could be “as strong, or even stronger” than the 5% contraction caused by the sovereign-debt emergency in 2008 and 2009, Economy Minister Peter Altmaier said Thursday in Berlin. National output could shrink for some months in the first half by more than 8%, with the biggest slump likely in May, he added.“That means that after 10 years of good economic growth we will again experience a recession this year,” said Altmaier. “It’s the first since 2009, and we want it to be a temporary one and that it’s quickly put behind us and the economy emerges stronger.”In the face of the unprecedented challenges posed by the spread of the deadly disease, Chancellor Angela Merkel’s government was widely expected to slash its forecast from the pre-crisis prediction of 1.1% growth.Germany’s efforts to limit the fallout are advancing, as aid applications pour in and officials seek a path to restart all-important auto production. Altmaier also underscored the government’s commitment to revive growth once the outbreak subsides.Under a government program aimed to providing strapped businesses with financial liquidity, 2,500 companies have requested a total of 10.6 billion euros ($11.6 billion) in support, according to state development bank KfW.“In such a situation, in which companies are really experiencing a massive collapse in sales, there is certainly a measure of panic in the air,” said Guenther Braeunig, head of the bank. He expects a “significant increase” in applications in the next few weeks.Merkel’s government secured emergency spending powers to unleash a historic rescue package that totals more than 750 billion euros, including social benefits, loans and guarantees for businesses and funds to take stakes in stricken companies.As aid starts to flow, Merkel -- still in precautionary quarantine at home -- turned her attention to the country’s critical auto sector, speaking with executives and industry heavyweights late Wednesday on how and when to restart factories. The meeting comes amid growing concern that some cash-strapped suppliers may not survive the pandemic’s fallout.The country can ill afford a prolonged shutdown of its car industry, which employs more than 800,000 people and is a key indicator of industrial health in Europe’s largest economy. Volkswagen AG currently burns through 2 billion euros ($2.2 billion) per week as most of its sites sit idle.As VW, Daimler AG and BMW AG halt production, the disruptions have ripple effects on the hundreds of companies that make components from screws to seat cushions. Many of these firms are small, family-owned entities that lack deep financial resources, putting them particularly at risk.While Germany has set up a series of measures to aid companies, the concern is the support won’t reach many smaller, cash-strapped suppliers quickly enough to keep them afloat.These firms are critical for the finely-tuned supply chain and widespread bankruptcies would be a disaster, Continental AG’s Chief Executive Officer Elmar Degenhart told reporters on Wednesday, after the auto-parts giant abandoned its earnings outlook over the coronavirus.Despite the risks in the coming, Altmaier offered an optimistic outlook going forward, saying Germany could be in position for “decent growth” next year and that the government planned spending to get the economy back on track.“We all want to be able to get things going again after the health crisis has passed,” he said. “For that, we will need more than the aid package we have put together. We need a fitness program, a growth program, and we will work toward that together in the government.”(Updates with additional comments and context beginning in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • German carmakers had crisis call with Merkel: Handelsblatt

    German carmakers had crisis call with Merkel: Handelsblatt

    The bosses of Volkswagen , BMW and Daimler held a crisis call with German Chancellor Angela Merkel on Wednesday to discuss how to get production restarted, Germany's Handelsblatt newspaper reported on Thursday. Carmakers have halted production at some sites as governments around the world have imposed lockdowns on their populations in response to the coronavirus outbreak. Volkswagen Chief Executive Herbert Diess last week said the carmaker might have to cut jobs if the pandemic is not brought under control as it is still spending about 2 billion euros ($2.18 billion) a week.

  • Reuters - UK Focus

    LIVE MARKETS-At the open: Oil stocks surge, no rebound for banks

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London. Oil and gas stocks are leading European bourses today amid surging oil prices and hopes Saudi Arabia and Russia could soon reach a deal to end their price war. The sector is up over 5% and lifting the broader indexes thanks to heavyweight majors such Royal Dutch Shell gaining close to 9%.

  • Reuters - UK Focus

    LIVE MARKETS-On the radar: Textbook corporate coronavirus headlines

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London. In the meantime, it’s 'same old' in terms of corporate news this morning in Europe with another batch of dividend cuts, executive bonus cuts (Daimler, Sodexo) , guidance dropped and job/production freezes (Volkswagen in Mexico). One of the most spectacular headline on the latter is British Airways expected to announce suspension of about 36,000 of its employees.

  • Bloomberg

    China Weighs Cuts to Electric-Car Subsidies It Just Extended

    (Bloomberg) -- China, the biggest market for electric cars, is considering a reduction in rebates given to buyers and limits on the models that qualify even as it commits to extending the costly subsidy program for another two years.The country’s state council said Tuesday it would extend rebates on electric vehicles until 2022 to support the industry as the coronavirus pandemic hobbles demand. But various government bodies are in discussions over reducing the incentives by 10% later in 2020, according to people familiar with the matter. They’re also in talks to narrow the universe of cars that qualify for the discounts, the people said, asking not to be identified because the deliberations are private.A reduction in subsidies could temper benefits for the likes of Tesla Inc. and Volkswagen AG, which are counting on the world’s biggest auto market to buoy sales. Electric-car manufacturers are already facing a host of challenges, from the global pandemic to the plunge in oil prices, which makes internal-combustion vehicles cheaper to drive.The subsidy plans show the balancing act China’s government is facing as it works to bring the economy back from the debilitating blow the coronavirus delivered early this year. With manufacturing sliding the most on record in February, industries are clamoring for state support.In its bid to become a leader in new-energy vehicles, China has maintained a significant subsidy program for over a decade and was in the process of rolling some of the support back to allow the industry to become more independent when the virus hit.NIO shares fell 4.7% in New York Wednesday.China’s auto industry has been hit particularly hard in the wake of the coronavirus, with weekly car sales at one point plummeting 96%. Now it’s Europe and the U.S.’s turn. Manufacturers across both regions have shuttered factories after governments imposed restrictions to stem the spread of the virus.New-vehicle registrations in France and Spain plunged by more than two-thirds in March from a year earlier, figures released Wednesday show. Several brands in the U.S. reported more than 40% declines for the month.Industry SlumpChina began subsidizing EV purchases in 2009 to promote the industry but has been gradually reducing handouts in the past few years to encourage automakers to compete on their own. The government had planned to phase them out completely at end of this year.But cutbacks that took effect last summer triggered the first downturn in the country’s EV industry, and the pandemic has only worsened the slump.The government bodies involved in the talks -- the Ministry of Finance, Ministry of Industry and Information Technology and the National Development and Reform Commission -- didn’t immediately respond to requests for comment or referred queries elsewhere.China PlantChina is a centerpiece of Tesla Chief Executive Officer Elon Musk’s automotive ambitions. The company began delivering China-built Model 3s to local consumers in January. Constructing the plant near Shanghai was key to unlocking a greater share of the market by qualifying its cars for subsidies and more favorable tax treatment.While Tesla’s registrations have been slow out of the gate, much of the weakness can probably by chalked up to seasonality and the impact the virus has had on the whole industry.General Motors Co. also has high hopes -- and a lot of cash -- riding on China’s EV market. The automaker announced early last month that it’s investing $20 billion into electric and self-driving vehicles by 2025. Some of its battery-powered models already are hitting showrooms in China ahead of the U.S., where federal incentives for its plug-in cars are shrinking.President Donald Trump also just completed a three-year effort to ease fuel-efficiency rules, which will make it easier for companies like GM to meet environmental standards that the Obama administration envisioned giving EVs a boost.VW Electric PushChina is a critical market for German auto giants VW, Daimler AG and BMW AG in terms of profits and sales. VW, the world’s top-selling automaker, is gearing its global electric-car push this year by starting production of purely battery-powered cars at two new factories in China.Daimler, the maker of Mercedes-Benz luxury cars, has introduced the EQC electric SUV and plans to expand its lineup of purely battery-powered vehicles to at least 10 in coming years with China being one of the key markets.The company has also folded its Smart city-car brand into a joint venture with its largest shareholder Geely, which will be based in China and make zero-emission subcompact cars for global markets.(Updates with NIO shares in the sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters - UK Focus

    Motor racing-Mercedes DAS system banned for 2021 despite cars staying same

    Formula One world champions Mercedes will not be allowed to use their innovative steering system next year even though the cars are staying the same, the governing FIA said on Tuesday. The dual-axis system (DAS) allows a driver to change the 'toe angle' of the front wheels by pushing and pulling on the steering wheel, rather than just moving it sideways. Mercedes have yet to race with DAS since the championship is on hold until at least the European summer due to the coronavirus pandemic.

  • EU antitrust watchdogs quiz Daimler, others on failed Nokia fee talks

    EU antitrust watchdogs quiz Daimler, others on failed Nokia fee talks

    European Union antitrust regulators have asked Daimler , Continental and other car parts makers for details of failed mediation talks with Nokia in a patent licensing fee dispute. Daimler, Continental, Bury Technologies, Valeo and Thales-owned Gemalto complained to the European Commission last year about the fees Finland's Nokia was demanding for patents related to car communications.

  • Reuters - UK Focus

    Motor racing-Formula One uses break from racing to join Britain's coronavirus battle

    If British industry succeeds in saving lives during the coronavirus pandemic it will be due in part to the pioneering role played by Formula One racing teams in the country. Seven of the 10 Formula One teams have joined forces with leading aerospace and engineering companies to ramp up production of ventilators while Mercedes has also worked with medics and academics to produce an alternative breathing aid. "F1 teams are used to operating at pace, they move quickly, within a safety remit, and have the capacity and the capability to work on both the R&D and the assembly," one person familiar with the setup said.

  • Reuters - UK Focus

    LIVE MARKETS-On the radar: dividend, capex and guidance cuts

    You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London. While Wall Street’s overnight rally and a positive session in Asia may give traders some comfort, European futures this morning are anything but reassuring. U.S. futures are also down about 1.5%.

  • Daimler Seeks Over $11 Billion Credit Line to Weather Crisis

    Daimler Seeks Over $11 Billion Credit Line to Weather Crisis

    (Bloomberg) -- Daimler AG is in talks with banks over arranging a new credit facility of at least 10 billion euros ($11 billion) to help it navigate the fallout from the coronavirus pandemic, according to people familiar with the matter.Daimler is seeking a credit line of 10 billion euros to 15 billion euros and an announcement on the final amount could come as early as next week, said the people, who asked not to be identified because deliberations are private. Talks with potential lenders are ongoing and the exact timing and structure of the deal could still change, they said.The move is part of a range of measures to shore up the financial muscle of the maker of Mercedes-Benz cars and trucks during the coronavirus crisis, said the people. The new credit facility would come on top of an existing 11 billion-euro credit line signed two years ago with a group of banks offering funding until 2025.“We would not be surprised if Daimler is indeed seeking to raise a new credit facility,” RBC Capital Markets analyst Tom Narayan said in a note. “The cash cushion between funding need -- for maturities in 2020 -- and funding available was already narrow to begin with.”Daimler declined to comment. The shares pared losses following the report on Thursday, closing 0.6% lower at 29.59 euros.Fiat, AirbusGlobal automakers face an unprecedented challenge after the pandemic crippled demand from China to Europe and the U.S. Governments have imposed restrictions on citizens, businesses and transportation to fight the outbreak.Last week, Daimler and other European manufacturers were forced to halt output at their factories in the region and have since expanded closures to sites in North America. A rapid decline in car demand prompted Standard & Poors on Thursday to lower credit ratings on Daimler and BMW AG by one notch.Other industrial giants are also taking steps to boost liquidity. Fiat Chrysler Automobiles NA signed a new 3.5 billion-euro credit facility with two banks, the automaker announced Thursday. That’s after plane-maker Airbus SE earlier in the week said it had converted a facility of about 5 billion euros into a new credit line amounting to 15 billion euros.Stuttgart-based Daimler said Thursday it will move to short-time work at its domestic operations. Under German rules the state pays part of the reduced salary for employees. Avoiding mass layoffs helped German manufacturers ramp up production after the financial crisis a decade ago.(Updates with analyst comment in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Formula 1 Helps Boris Johnson Edge Closer to 30,000 Ventilator Target

    Formula 1 Helps Boris Johnson Edge Closer to 30,000 Ventilator Target

    (Bloomberg) -- The U.K. is homing in on a solution to the shortage of ventilators needed to address the growing coronavirus crisis with help from Formula 1 motor racing teams and corporate giants such as Siemens AG and Airbus SE.Prime Minister Boris Johnson last week appealed to manufacturers of all stripes to help build 30,000 ventilators so that the National Health System doesn’t run out of capacity. The publicly funded system only has just over 8,000 of the devices in operation today.Adding urgency to the challenge is the rising number of U.K. cases of coronavirus: on Tuesday, the Health Department announced more than 1,400 new cases and 87 more deaths. Health service chiefs have warned that a lack of ventilators may soon force doctors to choose which patients get access to the life-saving equipment.While production of the new devices is yet to start, progress has been swift, and an announcement on the way forward is likely in the coming days, according to two people familiar with the matter, who asked not to be identified because they weren’t authorized to speak publicly.Ventilator Makers Can Speed Up, But They Face Shortages of PartsJohnson’s request caused initial confusion, with some dismissing his ambition as unfeasible. But three groups have been formed: one is looking at scaling up production of existing ventilators, the second at designing new models, and the third at reverse-engineering them.The first of those groups -- which includes Airbus, Siemens, Smiths Group Plc and the Mercedes and McLaren Formula 1 teams -- is working on two designs: one for non-critical patients, which can be produced in relatively high numbers, and one for patients in critical care, according to one of the people. Also in the group is Penlon Ltd., which already makes anesthesia machines that perform some of the functions of intensive care ventilators.On March 20, Formula 1 issued a statement saying a collective of U.K.-based teams were working on the ventilator project. “All the teams have expert design, technology and production capabilities, and specialize in rapid prototyping and high value manufacturing, which is hoped can be applied to the critical needs set out by government,” it said.Seven F1 teams are focused on rapid prototyping and design, as well as validation and testing, according to one of the people familiar. The manufacturers would then step in to produce the devices in bulk.The U.K. isn’t alone in seeking help from business to deal with the coronavirus: in the U.S., Ford Motor Co. and General Motors Co. are helping to step up production of respiratory devices.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Daimler CEO says carmaker has no need for state aid - Handelsblatt

    Daimler CEO says carmaker has no need for state aid - Handelsblatt

    Daimler currently has sufficient funding and sees no need to apply for state aid, despite halting production at its major plants in Europe to contain the coronavirus, Chief Executive Ola Kaellenius told German newspaper Handelsblatt. Daimler is shutting production at its plant in Tuscaloosa, Alabama, Kaellenius said.

  • Bloomberg

    SoftBank-Backed Getaround Looks for a Buyer as Demand Evaporates

    (Bloomberg) -- The car-sharing company Getaround is actively seeking a sale as the coronavirus outbreak has sent demand plunging and left the startup dangerously short on cash, according to people familiar with the matter.The startup, whose backers include SoftBank’s $100 billion Vision Fund, has been one of the two leading companies in the peer-to-peer car-sharing industry, where people can rent out their private vehicles online for hours or days. Investors had valued it at well over $1 billion. Getaround has said it has 5 million users.But travel companies have been hit particularly hard by the pandemic as large swaths of the global population have been ordered to stay mostly indoors. If Getaround cannot find a buyer or an infusion of cash, the startup may consider bankruptcy protection, said one of the people familiar with the matter, all of whom asked not to be identified because the information is private. Other backers of Getaround include Menlo Ventures and Toyota Motor Corp.A spokeswoman for Getaround wrote in an email: “Like many other businesses, we are dealing with the impacts of the Covid-19 outbreak, both in the U.S. and Europe, and we are evaluating the appropriate steps to manage this unprecedented event. This includes the support of our investors.”Economic impacts from the virus have been far-reaching and immediate, and startups have been particularly vulnerable. Many are unprofitable and lack a financial cushion. The trouble among SoftBank’s portfolio of startups has heightened concerns over the conglomerate’s creditworthiness and the value of its investments. Even before the pandemic, SoftBank Group Corp. founder Masayoshi Son faced criticism for pouring billions of dollars into unproven and unprofitable companies. OneWeb, backed by SoftBank Group, is considering bankruptcy, Bloomberg reported Thursday.Getaround and the broader car-sharing industry had been facing challenges even before the pandemic. The number of vehicles on car-sharing networks as of January, about 2.7 million, is dwarfed by the number of ride-hailing drivers, 64.6 million, according to Bloomberg New Energy Finance. Getaround said in January it had dismissed some workers but that it would continue to operate in more than 300 cities and that its revenue was growing sixfold. Last month, a car-sharing network owned by European automakers Daimler AG and BMW AG, called Share Now, stopped operating in North America.This month, Getaround outlined measures it was taking in response to the Covid-19 outbreak, which included waiving cancellation fees and quarantining cars that had been in contact with the coronavirus. Turo Inc., Getaround’s main startup rival, announced similar policies. Both companies acknowledged they’d seen drops in demand.On Thursday, as officials around the U.S. ordered many businesses to close, Getaround said it would keep renting cars. “Our service remains essential to our communities by providing flexible and safe access to transportation, and we are working to ensure it continues to be available during this time,” a spokeswoman said in a statement.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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    Coronavirus Wrecks Europe Auto Industry: Rough Road Ahead

    While European carmakers like Volkswagen and BMW are already warning a difficult year ahead, there are concerns about sustained economic impacts.

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