0P6N.IL - VOLKSWAGEN AG VOLKSWAGEN ORD SH

IOB - IOB Delayed price. Currency in EUR
143.40
+1.17 (+0.83%)
At close: 4:30PM BST
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Previous close142.23
Open142.79
Bid0.00 x 0
Ask0.00 x 0
Day's range142.79 - 143.95
52-week range131.20 - 166.71
Volume855
Avg. volume4,673
Market capN/A
Beta (3Y monthly)N/A
PE ratio (TTM)N/A
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target estN/A
  • Volkswagen, Ford Join Forces on EVs, Self-Driving Cars
    Bloomberg

    Volkswagen, Ford Join Forces on EVs, Self-Driving Cars

    Jul.12 -- Herbert Diess, Volkswagen AG chief executive officer, and Jim Hackett, Ford Motor Co. chief executive officer, discuss the companies' expanding alliance on developing self-driving and electric vehicles. They speak with Bloomberg's David Westin.

  • Ford and Volkswagen CEOs Agree Partnership Has Been Beneficial
    Bloomberg

    Ford and Volkswagen CEOs Agree Partnership Has Been Beneficial

    Jul.12 -- Herbert Diess, Volkswagen AG chief executive officer, and Jim Hackett, Ford Motor Co. chief executive officer, discuss the automakers' agreement to extend their partnership in electric and self-driving car technology. They speak with Bloomberg's David Westin on "Bloomberg Markets."

  • U.S. judge urges VW, SEC to resolve civil Dieselgate suit
    Reuters

    U.S. judge urges VW, SEC to resolve civil Dieselgate suit

    A federal judge in California on Friday urged the U.S. Securities and Exchange Commission and Volkswagen AG to resolve a civil suit stemming from its Dieselgate emissions scandal. U.S. District Judge Charles Breyer in San Francisco, who earlier had questioned why the agency waited two years to sue the automaker, said he was putting the suit on hold until Oct. 4. The SEC filed a civil suit in March accusing Volkswagen and its former chief executive, Martin Winterkorn, of defrauding investors in U.S. bond offerings.

  • Nissan, BMW in Talks to Pull South Africa Into Electric Car Era
    Bloomberg

    Nissan, BMW in Talks to Pull South Africa Into Electric Car Era

    (Bloomberg) -- Nissan Motor Co., BMW AG and Volkswagen AG are among carmakers in talks to bring the electric-car revolution to South Africa, as the nation’s auto-factory floors risk being left behind in the global switch to greener vehicles.The industry is preparing a unified stance on electrification to present to the government by the end of the year, Mike Mabasa, chief executive officer of the National Association of Automobile Manufacturers of South Africa, or Naamsa, said in an interview.Among the goals is persuading lawmakers to reduce or drop a 23% import tariff on electric vehicles to help ramp up nascent domestic sales, he said. Another is to roll out a charging infrastructure in a country where the state-owned power monopoly is in deep financial crisis.Taking steps to boost the popularity of electric vehicles in South Africa is just one part of the equation. The auto-manufacturing industry makes up about 7% of the country’s economy, according to Naamsa. The sector is one of the more positive aspects of an economy expected to grow at less than 1% for a second consecutive year.“The country needs to move forward and bring new technologies,” said Mike Whitfield, Nissan’s chairman for the southern Africa region. “The rest of the world will move very fast and if we don’t get going we will be left behind.”South Africa has long been a hub for global automaking, attracting plants operated by seven carmakers from Toyota Motor Corp. to Isuzu Motors Ltd. Last year, the manufacturers exported almost 210,000 cars to Europe, where Volkswagen is already retooling factories to only make electric cars. That’s just under a third of all local production and makes up 60% of exports.To date, there are no firm plans for electric-car or hybrid production in South Africa, but the government and industry agreed in 2018 to extend a manufacturing incentive program, creating jobs and enabling models like the BMW X3 sport utility vehicle and Nissan’s Novara pickup to be produced locally.“The electric-vehicle play in South Africa will not be determined by the South African consumer, but by the requirements of export markets,” Martyn Davies, an auto-industry specialist at Deloitte LLP, said by phone from Johannesburg, adding that the weaker rand is also making exports more attractive.The quality of the local plants of BMW, Ford Motor Co and Mercedes-Benz AG are good enough to make retooling quite straightforward, he said, adding that the next product made in South Africa by those automakers could feasibly be electric.Under the terms of the new manufacturing plan, the automakers will have to more than double annual production to as many as 1.4 million vehicles by 2035, and that won’t happen without making electric cars as well as gas or diesel, according to Naamsa’s Mabasa.BMW’s i3 and i8 are two of only three models currently available in the birth country of electric car pioneer Elon Musk, and only 620 units have been sold. Jaguar Land Rover introduced the I-Pace earlier this year, while Nissan is holding off on the launch of the latest Leaf until after an agreement is reached on import tariffs.Elsewhere on the African continent, a plan by Volkswagen to introduce an electric-vehicle in Rwanda stands in contrast to a lack of other developments.Another barrier to an accelerated electric-car boom in South Africa is Eskom Holdings SOC Ltd., the power provider that last week reported an annual loss of almost $1.5 billion and requires an $8.8 billion government bailout over the next three years.The utility has been forced to implement intermittent rolling blackouts and is reliant on coal, which is out of step with the environmentally friendly advantages of producing electric cars, Mabasa said. Therefore, the industry paper is likely to lay out a mixture of power sources between Eskom and privately owned renewable energy projects, he said.But the need to turn around Eskom’s financial situation is likely to be of more pressing concern to the government than using it to enable the electric-car industry, Nissan’s Whitfield said.“There is excess capacity, but quite frankly Eskom’s issues have to be addressed or we will have much bigger problems,” Whitfield said.\--With assistance from Prinesha Naidoo.To contact the reporter on this story: John Bowker in Johannesburg at jbowker2@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Elisabeth Behrmann, John BowkerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Betting Like SoftBank Drives Toyota’s Value Up by $19 Billion
    Bloomberg

    Betting Like SoftBank Drives Toyota’s Value Up by $19 Billion

    (Bloomberg) -- Everywhere you turn in the transportation industry these days, Toyota Motor Corp. seems to already be there.From batteries and self-driving vehicles to lunar rovers and ride-hailing companies, the world’s second-biggest automaker is on an investment spree, pouring more than $3 billion into deals and partnerships in recent years. Toyota, which reports first-quarter results Friday, is placing bets across the board, mimicking technology investors like SoftBank Group Corp.Toyota, Volkswagen AG and other carmakers face an uncertain future as new technologies and business models ripple through the $2.23 trillion global auto industry. Uber Technologies Inc. has made younger buyers less interested in owning and driving cars, and Tesla Inc.’s success with electric vehicles has spurred bigger rivals to counter with their own products. All told, car sales will be only slightly higher in 2030, while new spending on mobility services will total $1.34 trillion, Accenture predicts.“They are developing by far the most diverse lineup of different mobility products, from personal mobility to luxury cars and various types of shared mobility and commercial vehicles,” said Janet Lewis, an analyst at Macquarie Capital Securities (Japan) Ltd. in Tokyo. “Investors, to the extent that they are invested in the auto sector, generally agree that Toyota is looking like a winner.”Indeed, shareholders are endorsing Toyota’s approach. The automaker’s stock rose 1% on Thursday, leaving it up 10% this year and adding $18.6 billion in market value. That’s better than the Topix index and other Japanese automakers, even amid tepid profit and sales growth. Analysts surveyed by Bloomberg predict quarterly operating profit will rise 1.3% to 692 billion yen, while revenue will climb 1.6% to 7.48 trillion yen.Big BetIn addition to investments and partnerships, Toyota’s spends about 1.05 trillion yen ($9.7 billion) a year on research and development.Akio Toyoda, chief executive officer and grandson of the automaker’s founder, has been holding forth at public appearances about Toyota’s transformation into a mobility service provider from a manufacturer.“My true mission is to completely redesign Toyota into a mobility company,” Toyoda said in May, saying the mission is to not just make products that move people around but provide “all kinds of services related to mobility.”Ride-HailingToyota’s strategy is to tie up with the strongest ride-hailing providers in each region and then integrate its hardware and software into their services. Toyota is a major investor in the world’s three top ride-hailing companies: Uber, China’s Didi Chuxing and Southeast Asia’s Grab Holdings Inc.In Japan, the carmaker teamed up with SoftBank — which has poured even more money into the three companies — in yet another mobility service venture called Monet Technologies Inc.The Japanese companies are betting that Monet can evolve into a variety of transportation-related business. For example, they envision meal-delivery vehicles that can prepare food en route to customers, or hospital shuttles that offer medical examinations.Toyota’s rivals aren’t standing still, either. General Motors Co. injected $500 million into Uber rival Lyft Inc. in 2016 while also pursuing its own robotaxi program with the Cruise Automation unit. Daimler AG and BMW AG merged their car-sharing operations this year after buying up several local ride-hailing ventures.ElectrificationWhile Toyota was first out of the gate with the Prius hybrid car, it hasn’t rolled out any mass-market EVs. Like Volkswagen and other major automakers, the Japanese company was biding its time. That will change next year, when Toyota introduces the first of six EV models planned through 2025.To secure enough batteries, Toyota recently stepped up its dealmaking with manufacturers, racing competitors to secure supplies for pure-electric and hybrid vehicles. Volkswagen and Daimler have made tens of billions of dollars in battery investments.In July, the Japanese auto giant made back-to-back battery announcements with China’s Contemporary Amperex Technology Co. Ltd. and BYD Co. Toyota also is committed to work with suppliers Toshiba Corp., GS Yuasa Corp. and Toyota Industries, as well as long-term partner Panasonic Corp.In Japan, Toyota teamed with Mazda Motor Corp, Suzuki Motor Corp., Subaru Corp. and parts makers to develop a common platform for EVs, betting that a combined effort can save development and production costs.Earlier this year, Toyota’s brought forward its EV sales target by five years. The company now expects to see annual sales of 5.5 million units globally in 2025, compared with a previous timeline of 2030.Fuel CellsToyota placed bets on fuel-cell technology years ago, gambling that hydrogen would replace batteries to store and deliver electricity for cars. So far, the technology’s complexity and high development costs has scared off most rivals. Three years after introducing its Mirai hydrogen car, the model remains a rarity even in Japan.Even so, Toyota is keeping fuel-cell car development alive, with hopes that Chinese interest in hydrogen will create a bigger market for the technology. In April, Toyota said it will work with Chinese truckmaker Beiqi Foton Motor Co. and Beijing SinoHytec Co., an affiliate of Tsinghua University, to develop more commercial vehicles with fuel cells. In July, it struck a similar deal with carmaker China FAW Group Co. and Higer Bus Co. to supply fuel-cell systems.Hybrid CarsAfter keeping its hybrid-car technology in Japan, the U.S. and developed markets for years, Toyota is now seeking to enter new markets. It will supply its hybrid system to Suzuki globally, while Suzuki will sell compact vehicles through Toyota in India and Africa, the carmakers said in March. The pair also will jointly develop a multipurpose vehicle that will be sold in India under both brands.Toyota also may share the hybrid-car engine technology it pioneered with the Prius with Chinese manufacturers, seeking to catch up with rivals in the world’s biggest auto market. Toyota is in advanced talks to license its hybrid system to Chinese carmaker Geely Automobile Holdings Ltd., Bloomberg reported last year.Toyota will benefit if China eases emissions rules so that low-polluting hybrid cars aren’t penalized as much as normal gas guzzlers. Policy makers are now considering rules that would count levels from a super-low emission vehicle as one-fifth of a normal gasoline car, according to a draft of the rules released July 9 by China’s Ministry of Industry and Information Technology.A majority of Toyota’s new partners are Chinese manufacturers because Toyota wants to catch up there with Volkswagen and General Motors in the next decade. China contributed most of Toyota’s growth last year, as well as this year, thanks to new products and its Lexus luxury brand, which benefited from lower government tariffs on auto imports from Japan.Connected CarsAlthough Toyota lags behind General Motors and European rivals, the digital information business has been a central -- yet less visible -- element of its vision for the future.Automobiles are generating more data that can be shared in order to improve safety, monitor road conditions and help passengers. For example, many manufacturers see a future when collisions become rare because autonomous vehicles will be programmed to avoid each other.Toyota is working to have 70% of new cars connected globally by 2020, with almost all of those in the U.S. and Japan. Automakers are already using the cloud to generate revenue through telematics insurance and car-sharing services.Toyota also has talked about using data to alert dealers when cars need servicing, provide information about road and traffic conditions for smart city planning, and inform retailers where their customers are commuting from to allow more targeted marketing.Moon PlansAlthough less relevant for Earthlings, Toyota wants to be the first automaker on the moon. Together with the Japan Aerospace Exploration Agency, Toyota is planning to build a six-wheeled, self-driving transporter that can carry two humans for a distance of 10,000 kilometers. They expect to land a vehicle on Earth’s closest ndaimeighbor in 2029.The rover will use solar arrays and fuel cells to generate and store power. The vehicle will be big enough so the astronauts can take their suits off and live in it while exploring the lunar surface.“Toyoda is determined to shift his company into a mobility company from a conventional hardware-oriented corporation,” said Koji Endo, senior analyst at SBI Securities Co. “It’s yet to be seen if Toyota can win among the competition and rapid changes in the business model, but it seems management is determined to chase this course.”(Updates with Toyota shares in)\--With assistance from Kae Inoue.To contact the reporter on this story: Ma Jie in Tokyo at jma124@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Reed Stevenson, Michael TigheFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • German prosecutors charge ex-Audi boss Stadler over emissions cheating
    Reuters

    German prosecutors charge ex-Audi boss Stadler over emissions cheating

    German prosecutors said on Wednesday they had filed charges against former Audi Chief Executive Rupert Stadler, who is being investigated over his role in Volkswagen's emissions test cheating scandal. Volkswagen admitted in September 2015 to having used illegal engine control software to cheat pollution tests, triggering a global backlash against diesel. The public prosecutor's office in Munich said Stadler and three other defendants are being charged with fraud, false certification and criminal advertising practices.

  • Reuters - UK Focus

    UPDATE 3-German prosecutors charge ex-Audi boss Stadler over emissions cheating

    German prosecutors said on Wednesday they had filed charges against former Audi Chief Executive Rupert Stadler, who is being investigated over his role in Volkswagen's emissions test cheating scandal. Volkswagen admitted in September 2015 to having used illegal engine control software to cheat pollution tests, triggering a global backlash against diesel. The public prosecutor's office in Munich said Stadler and three other defendants are being charged with fraud, false certification and criminal advertising practices.

  • Bloomberg

    There’s a $5,600 Electric Makeover for Your Old Diesel Car

    (Bloomberg) -- About 5,000 euros ($5,600) are set to buy your 10-year-old combustion clunker an electric makeover—and offer a cut-price way to avoid driving bans across European cities.French startup Transition-One has developed retrofitting technology that adds an electric engine, batteries and a connected dashboard into older models of Fiat Chrysler Automobiles NV, Volkswagen AG, Renault SA and PSA Group for about 8,500 euros, or 5,000 euros after government subsidies in France.“I’m selling to people who can’t afford a brand new 20,000-euro electric car,” founder Aymeric Libeau said in an interview aboard his first prototype, a Renault Twingo from 2009 with an electric driving range of 180 kilometer (112 miles). “We’re turning the best-selling models across Europe into electric cars.”Libeau expects French and European regulator approval by the end of the year and will start pre-orders in September to test demand.Automakers are rushing to churn out electric cars to comply with stricter regulations on emissions in Europe. While sales are rising, hybrid and battery cars made up less than 3% of total sales last year as vehicle prices remain comparatively high with shorter driving ranges than conventional models.Read more: A Dead End for Fossil Fuel in Europe’s City CentersEven as the tepid uptake is set to reverse in coming years, initiatives like Transition-One’s show the car industry is still trying to navigate a path towards an electric future, with the risk of outright driving bans giving birth to moonshot ideas. “You could technically turn a handcart into an electric car—the question is, does it make sense and how big is the effort?”An increasing number of cities has already started to ban older diesel cars, after the 2015 Volkswagen diesel emission-cheating scandal prompted scrutiny of cars flouting limits. Over the next decade, many more European cities will cut access to fossil-fuel cars altogether.In the prototype Twingo, three battery packs are fitted in front and two in what used to be the gas tank. The whole pack, bought from a Tesla Inc. parts reseller, weighs 120 kilograms (265 pounds). To compare, Renault’s electric Zoe has a 290 kilogram battery for a 210 kilometer driving range. Prices start at around 23,000 euros excluding battery rental battery.The transition takes less than a day, leaving the original stick shift and gear box and installing the plug behind the hatch that drivers usually pop open to refill the tank.There are doubters on Libeau’s approach, and questions over how attractive a shortened driving range will be to motorists. Markus Lienkamp, a professor of automobile technology at the Technical University of Munich, also warns against the risk of errors and the difficulty of obtaining regulatory approvals for the retrofitted cars.“You could technically turn a handcart into an electric car—the question is, does it make sense and how big is the effort?” Lienkamp said. “My advice would be to drive the combustion car as long as it can take, and just buy a new electric car after, because it makes much more sense financially.”Libeau, whose previous experiences include co-founding software company Pentalog Group, has worked on retrofitting for two years, and tested the method with a French business school. He is looking to raise 6 million euros to build a factory he says would be capable of churning out as many as 4,000 vehicles next year.Retrofitting services have so far focused on one-offs for classic cars with a number of small companies offering a variety of conversion kits. What’s specific with the French startup is a plan to help create a regulatory framework rather than case-by-case permits to broadly offer the technology.Read more: The New Hot Rods Are Souped-Up Vintage Cars With Electric MotorsPSA Chief Executive Officer Carlos Tavares has called the idea of retrofitting “great” while cautioning that large companies needed worldwide regulations on emissions and safety before going down this road. “For that to happen, first thing is: align regulations,” he said on his online show ACoffeeWithCarlosTavares earlier this month.Transition-One’s solution is compatible with models including PSA’s Citroen C1 and Peugeot 107, Fiat 500, Toyota Aygo, Twingo II and Volkswagen Polo.“If the end goal is to cut pollution, all solutions should be on the table,” Libeau said, driving in the dense traffic of central Paris. “New cars aren’t enough.”\--With assistance from Oliver Sachgau.To contact the authors of this story: Ania Nussbaum in Paris at anussbaum5@bloomberg.netMarie Mawad in Paris at mmawad1@bloomberg.netTo contact the editor responsible for this story: Elisabeth Behrmann at ebehrmann1@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Group 1 Automotive (GPI) Q2 2019 Earnings Call Transcript
    Motley Fool

    Group 1 Automotive (GPI) Q2 2019 Earnings Call Transcript

    GPI earnings call for the period ending June 30, 2019.

  • Motley Fool

    Hard Times for Big Auto

    A slowing cycle, geopolitical tensions, union pressures, and more -- automakers just can’t catch a break.

  • Volkswagen Profit Jumps on Strong SUV Demand
    Motley Fool

    Volkswagen Profit Jumps on Strong SUV Demand

    Good SUV and luxury sales -- and no diesel-scandal charges -- helped VW to a strong quarter.

  • Bloomberg

    VW Bucks the Trend in Crowd of Struggling Carmakers

    (Bloomberg) -- Volkswagen AG joined PSA Group in using sales of lucrative sport utility vehicles to stand out against a crowd of carmakers struggling with the auto market’s downturn.The same day Nissan Motor Co. said it would cut about 10% of its global workforce after quarterly profits fell to almost zero, VW on Thursday beat profit expectations in an increasingly difficult environment.Models like the VW T-Roc crossover and Skoda Karoq account for some 35% of deliveries this year compared with just 25% last year, a turnaround after VW lagged rivals’ SUV lineups for years. Sales of higher-priced SUVs helped boost Peugeot-maker PSA’s first-half return on sales to a record. VW’s shares rose as much 2.2%.“Our model mix is improving and we’ve been successful with our pricing,” Chief Financial Officer Frank Witter told Bloomberg TV in an interview. The second half of the year will be “potentially difficult” in a “weaker market environment,” he said.To counter declining demand, VW has scaled down production plans by some 450,000 cars for this year and will lower output further if necessary, Witter said. VW’s cut roughly equals the annual output of one its 122 factories worldwide and exceeds Tesla Inc.’s entire targeted 2019 deliveries of between 360,000 and 400,000 cars.Carmakers have struggled in the past months with falling demand, trade tensions and record spending for electric and self-driving cars that’s squeezing returns, leading companies like Daimler, Tesla Inc. and Ford Motor Co. to cut annual guidance or fall short of expectations.China, the world’s biggest car market, contracted 12% through June, amid declines in the U.S. and Europe and forecasts for a tough second half of the year. Nissan on Thursday said it’ll cut 12,500 jobs, reduce global production capacity by 10% by the end of fiscal 2022 and slim down its product lineup.“VW may see fresh records on sales, revenue and operating results this year,” NordLB analyst Frank Schwope said in a note. “However, worsening trade conflicts and ongoing high investments in future technology for electric and self-driving cars will make for a volatile environment.”While Volkswagen’s second-quarter profit excluding special items declined 8.1% to 5.13 billion euros ($5.7 billion), it still beat analyst expectations of 4.9 billion euros. The company kept its margin guidance unchanged for an operating return on sales in a range of 6.5% and 7.5%.Volkswagen was flat at 158.64 euros at 11:33 a.m. in Frankfurt trading. The shares have gained 14% this year.Deliveries at the Audi luxury brand should pick up in the second half of the year, helped by an updated version of the popular A4 sedan, Witter said. Audi, VW’s biggest profit contributor, is currently is talks with labor unions over future production plans including on where to manufacture electric cars.VW remains on track to generate at least 9 billion euros in cash this year after first-half results offer “a stable basis,” Witter said.Free cash flow of 6.9 billion euros in the first half of the year is “almost double of what Daimler and BMW together will generate in all of 2019,” Evercore ISI analyst Arndt Ellinghorst said in a note. “The market seems to happily ignore this given VW trades at a 20% discount to BMW and Daimler.”Asset SalesVW last month listed its trucks business Traton SE , a significant move toward its goal of greater focus on the main car business. Investors expect an update on the next steps to streamline VW’s conglomerate structure, which might include selling industrial machinery units Renk AG and MAN Energy Solutions.VW’s management is “pushing hard” to lift the manufacturer’s low valuation, Witter said, with the company exploring strategic options for Renk AG and MAN Energy Solutions. Analysts have urged VW to consider deeper changes including an initial public offering of the high-margin Porsche sportscar business to unlock value.A Porsche IPO “isn’t a priority” and there are currently no plans to sell the Ducati motorbike brand, Witter said, reiterating previous comments. But he left the door open to explore options at some point “down the road.”(Updates with CFO comment in fifth paragraph.)\--With assistance from Matthew Miller.To contact the reporter on this story: Christoph Rauwald in Frankfurt at crauwald@bloomberg.netTo contact the editors responsible for this story: Elisabeth Behrmann at ebehrmann1@bloomberg.net, Chad ThomasFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Volkswagen second-quarter operating profit up 30% as SUV push pays off
    Reuters

    Volkswagen second-quarter operating profit up 30% as SUV push pays off

    Volkswagen Group shares rose 2% after the carmaker posted a 30% rise in second-quarter operating profit despite a drop in vehicle sales as rising demand for sports utility vehicles and premium brands boosted margins. Volkswagen bucked a trend of falling demand for passenger cars by launching a range of higher-margin sports utility vehicles at a time when demand for sedans is falling. Daimler, Aston Martin and supplier Continental warned on profits this week.

  • Reuters - UK Focus

    UPDATE 2-VW Q2 operating profit up 30% as SUV push pays off

    Volkswagen Group shares rose 2% after the carmaker posted a 30% rise in second-quarter operating profit despite a drop in vehicle sales as rising demand for sports utility vehicles and premium brands boosted margins. Volkswagen bucked a trend of falling demand for passenger cars by launching a range of higher-margin sports utility vehicles at a time when demand for sedans is falling.

  • Cummins makes offer for VW's large engines unit: sources
    Reuters

    Cummins makes offer for VW's large engines unit: sources

    United States-based diesel engines maker Cummins has made an indicative offer for Volkswagen's MAN Energy Solutions unit, people close to the matter said, as the carmaker seeks to slim down its portfolio of disparate assets. Volkswagen announced in May that it is exploring a sale or partnership for its MAN Energy Solutions as part of a restructuring of the German cars, trucks and bus empire. VW has held talks with Cummins, and received an offer from the U.S. company for MAN Energy Solutions, the sources said.

  • Reuters

    Cummins makes offer for Volkswagen's large engines unit - sources

    United States-based diesel engines maker Cummins has made an indicative offer for Volkswagen's MAN Energy Solutions unit, people close to the matter said, as the carmaker seeks to slim down its portfolio of disparate assets. Volkswagen announced in May that it is exploring a sale or partnership for its MAN Energy Solutions as part of a restructuring of the German cars, trucks and bus empire. VW has held talks with Cummins, and received an offer from the U.S. company for MAN Energy Solutions, the sources said.

  • GM’s Biggest Chinese Ally Braces For First Annual Sales Dip
    Bloomberg

    GM’s Biggest Chinese Ally Braces For First Annual Sales Dip

    (Bloomberg) -- SAIC Motor Corp. expects annual sales to fall for the first time in at least 14 years as China’s biggest automaker battles through a slump in demand roiling the world’s largest car market, according to people familiar with the matter.The Shanghai-based company, Volkswagen AG and General Motors Co.’s biggest auto-making partner in China, projects 2019 sales will fall about 7%, said the people, who asked not to be identified because the information hasn’t been made public. The new target of 6.54 million is about 8% below SAIC’s public forecast for a slight increase in sales and would represent the first full-year drop on record, based on data compiled by Bloomberg back to 2006.Citing weakness in Chinese demand for cars, JPMorgan lowered its second quarter earnings per share estimate for GM on Thursday to $1.25 from $1.29, and also cut its projection for GM’s 2020 profit by about 1%.Investors seemed unfazed by the news as GM rose 1.1% to $39.53 as of 10:56 a.m. in New York.At SAIC’s venture with VW, sales are expected to fall by about 3% to 2 million units and deliveries at SAIC General Motors Corp. are projected to slide by almost 8% to 1.82 million vehicles, according to one of the people. The figures would represent the first full-year drop for the VW venture and the second-straight annual decline for the GM one, according to data compiled by Bloomberg.The projections are the latest signs of deterioration in the global car market, as shifts in technology and weakening economic growth give consumers fewer reasons to go to the showroom, whether it be in China, the U.S. or Europe. The slump is prompting traditional automakers to fight back, by slashing jobs, pursuing mergers, and plowing billions of dollars into electric and self-driving vehicles.A representative for SAIC said that if the overall market slides this year, the company plans to sustain its market share. Representatives for GM and the SAIC-VW venture declined to comment.In China, consumers bought more cars in June -- the first increase in a year -- but those gains were largely inflated by heavy discounts to clear inventory, indicating the trend won’t last. Deliveries to dealerships continued to fall. The state-backed China Association of Automobile Manufacturers is forecasting a second straight year of declines in the country’s passenger-car market, while researcher LMC Automotive last month predicted a 5% drop. GM representatives declined to comment on forward-looking figures.Adding to the woes in China are continued trade frictions with the U.S. and the advent of tougher emissions standards.SAIC reported this month a 17% drop in first-half sales and said it saw declines across its various ventures. The company has offered buyers incentives of as much as 50% over the past few months to clear inventory of cars that don’t meet stricter emissions standards, according to local media reports. Eighteen provinces and regions -- which together account for most of China’s car sales -- began requiring vehicles to meet the new criteria from July 1.It’s not just SAIC that’s suffering. Geely Automobile Holdings Ltd., which is controlled by billionaire Volvo Cars owner Li Shufu, issued a profit warning last week. That triggered a broader fear that the automaker -- which Sanford C. Bernstein sees as a barometer for sentiment on car stocks -- is foreshadowing further pain across the sector. Great Wall Motor Co. on Friday warned first-half profit fell about 59% and slashed its full-year sales forecast to 1.07 million units, or 11% below what it projected in March.Beyond China, European car registrations fell for the ninth time in 10 months, with June seeing the region’s biggest drop this year. In the U.S., most automakers posted shrinking sales in June and the industry is headed for the second annual sales decline in three years.Even India, long a growth market with still-low car penetration, is now suffering from a prolonged decline. Sales of passenger vehicles in the country dropped more than 17% in June, the eighth straight monthly retreat.(Adds analyst lowering estimate of GM’s EPS in third paragraph.)\--With assistance from David Welch and Kyle Lahucik.To contact Bloomberg News staff for this story: Tian Ying in Beijing at ytian@bloomberg.net;Steven Yang in Beijing at kyang74@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Ville Heiskanen, Emma O'BrienFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Volkswagen investment vaults Argo into top ranks of self-driving firms
    Reuters

    Volkswagen investment vaults Argo into top ranks of self-driving firms

    Volkswagen AG's $2.6-billion investment in Ford Motor Co's Argo AI self-driving unit, announced on Friday, immediately vaults the two-year-old Pittsburgh-based startup into the top ranks in the sector. Argo said VW was investing $1 billion in cash and contributing its European self-driving unit, valued at $1.6 billion. The investment deal gives Argo a valuation of just over $7 billion, one of the highest in the autonomous vehicles sector.

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