|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||165.64 - 171.65|
|52-week range||147.95 - 188.00|
|Beta (3Y monthly)||1.02|
|PE ratio (TTM)||5.50|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
(Bloomberg) -- BMW AG isn’t showing much enthusiasm to get on board with a German government push to establish battery cell production in Europe, slowing a plan to create an industry that keeps pace with Asian rivals and get on the front foot on elusive climate goals.“I don’t believe it makes sense for every carmaker to make their own cells,” BMW’s Chief Financial Officer Nicolas Peter told reporters on the sidelines of an event in Munich Tuesday. The company is happy to join a consortium or work with existing producers, but doesn’t see the need to go beyond that, he said.Chancellor Angela Merkel held a three-hour meeting with the chief executive officers of BMW, Volkswagen AG and Daimler AG Monday in Berlin to redouble efforts to boost electric car adoption. The discussion ended without concrete results, adding to a sense of slow motion on the switch to cleaner vehicles.While BMW is balking, Volkswagen in May selected Northvolt AB as its partner to start production of battery cells in Germany with an investment of almost 1 billion euros ($1.1 billion). BMW owns a stake in Northvolt alongside VW, which it plans to raise in the near future, while staying below Volkswagen.A plan by Germany and France to establish an “Airbus” of battery-cell production in Europe is struggling on concerns existing Asian producers are better positioned to lower the costs of the key electric-car product.Not EnoughFollowing the meeting, Transport Minister Andreas Scheuer criticized the nation’s biggest industry for not building enough electric cars.“I have a bit of a problem with the fact that the interesting products will only appear in the next few years,” Scheuer said. “Where can consumers right now look in car shops at different products and experience electric mobility first hand?”Merkel’s government is under pressure from young voters who say it’s not doing enough to meet climate goals. It’s seeking to redouble efforts to modernize the car industry and build out a charging network for 7 million to 10 million electric cars by 2030. Germany currently has about 17,000 public chargers.Talks will resume to prepare plans to expand the electric car infrastructure. A decision is due in the fall at another meeting with carmakers and the government in Berlin. To contact the reporters on this story: Birgit Jennen in Berlin at firstname.lastname@example.org;Oliver Sachgau in Munich at email@example.com;Arne Delfs in Goslar at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Sills at email@example.com, Elisabeth BehrmannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Volkswagen and FiatChrysler could face penalties of up to 1.83 billion euros (1.64 billion pounds) and 746 million euros respectively, if they fail to meet the European Union's emissions targets set for 2021, according to AlixPartners. The study by the consulting firm, which was published on Wednesday, shows how hard it is for carmakers to meet European rules for cutting average fleet emissions for passenger cars to 95 grams of carbon dioxide per kilometre by 2021. AlixPartners forecast the size of potential penalties based on the vehicle emissions levels reported by carmakers at the end of 2017.
Volkswagen and FiatChrysler could face penalties of up to 1.83 billion euros ($2.08 billion) and 746 million euros respectively, if they fail to meet the European Union's emissions targets set for 2021, according to AlixPartners. The study by the consulting firm, which was published on Wednesday, shows how hard it is for carmakers to meet European rules for cutting average fleet emissions for passenger cars to 95 grams of carbon dioxide per kilometer by 2021. AlixPartners forecast the size of potential penalties based on the vehicle emissions levels reported by carmakers at the end of 2017.
(Bloomberg) -- Just one month into the job, Daimler AG’s new executive duo is unearthing skeletons from the diesel-scandal era, hobbling the move toward an electric future with a crisis that erupted almost four years ago.After previously promising a slight earnings gain for 2019, operating profit this year will fail to grow, Daimler said late Sunday in its third downgrade in a year. The company blamed proceedings around allegations of emissions tampering in diesel cars for the more muted outlook, which required higher provisions to account for recalls. The stock fell as much as 5.1%, almost erasing the gain that Daimler had built up since the start of the year.The more pessimistic outlook heaps pressure on Chief Executive Officer Ola Kallenius, who’s flanked by new Chief Financial Officer Harald Wilhelm, to implement their proposal to rein in costs and restore profitability, having taken over only recently from long-term CEO Dieter Zetsche. But investors say the duo’s future strategy remains light on details and lament the rapidly recurring revisions that are without precedent in the German car industry.“It all comes back to the same old fact: Daimler needs to execute better,” said Arndt Ellinghorst, an analyst in London at Evercore. “The endless array of so called ‘one-time’ effects raises questions regarding process, management information systems and ultimately accountability of management.”Ups and DownsZetsche’s own tenure of more than a dozen years had known its ups and downs, skewed toward the latter in the period before his departure. After managing to return Daimler to the top of the luxury-car pack, his last year at the helm was marked by two profit warnings and a falling stock, which ended the year down by more than a third, a considerably poorer return than its two big German rivals, BMW AG and Volkswagen AG.The German car industry is facing a litany of issues, from the costly switch to electric and self-driving cars, to the trade war between the U.S. and China that has complicated sales, because some of the biggest production sites sit in the U.S. and ship their cars to Asia.And while the diesel crisis first erupted at VW in late 2015, it has engulfed the entire industry. Days before the latest warning, Daimler suffered a fresh setback when German regulators issued a mandatory recall for about 40,000 Mercedes GLK SUVs over potentially illegal software to skirt emissions rules. A spokesman declined to comment on a connection to the profit warning.German authorities already slapped Daimler with a recall of 774,000 diesel cars in Europe last June over the use of prohibited devices regulating their emissions. The company continues to claim a clean-engine record.Corporate Culture“Clearly both the near term operational challenges and possible questions around Daimler’s corporate culture are issues that must be addressed with urgency by Daimler’s new CEO,” Dorothee Cresswell, an analyst at Barclays Equity Research, said in a June 24 note.The provision of as much as 1 billion euros may also raise questions on the sustainability of the dividend, which Daimler reduced recently, said Bloomberg Intelligence analyst Michael Dean. The company paid out 3.25 euros a share last year, down from 3.65 euros. While shares fell 4% to 47.65 euros at 2:51 p.m. in Frankfurt trading, bondholders took the third profit warning in their stride.The carmaker’s most liquid euro-denominated bonds, maturing in 2023 and 2026, are barely moving in Monday trading, based on data compiled by Bloomberg. The cost of five-year default insurance remains near its lowest level in more than a year after rising almost 2.5 basis points to 56.9 basis points, based on CBIL prices.Facing InvestigationsThe German manufacturer is facing investigations in Europe and the U.S. over allegedly excessive pollution from its diesel vehicles. Daimler has agreed to software upgrades for millions of cars in Europe, while so far escaping fines. That’s in contrast to VW, where the scandal has so far cost the world’s biggest carmaker 30 billion euros ($34 billion) in fines and provisions.Highlighting the breadth of issues, Daimler on Sunday also warned that its struggling van unit will be unprofitable this year, with a return of sales of minus 2% to minus 4%. The division slumped to a surprise loss in the first quarter as plans to produce a Mercedes-Benz pickup truck in South America fell through.For Kallenius and Wilhelm, the latest revision offers a chance to clean house ahead of a more comprehensive overhaul. Last month, shareholders approved a new corporate structure that will give its divisions for cars, trucks and mobility services more independence. While Daimler’s woes at the Mercedes-Benz cars division underscores the urgency behind the move, it could rally criticism from some investors to implement deeper changes, including a separate listing for the sprawling trucks division, a step that would mimic a move by VW.Kallenius may be new in his job, but he’s no stranger to Daimler, having worked for the company his entire professional life. Wilhelm, too, is familiar with the company, having worked at the carmaker prior to his years spent as finance chief for Airbus SE. Still, the duo may find that they’ve not reached the bottom yet in terms of financial expectations for the year, said Marc-Rene Tonn, an analyst at Warburg Research, citing a “less favorable” sales mix and supply chain constraints.“We fear that Sunday’s profit warning may not be the last for the current year,” he said.(Updates with dividend comment in 10th, bond reaction in 11th paragraph.)To contact the reporter on this story: Christoph Rauwald in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Palazzo at email@example.com, Benedikt Kammel, Elisabeth BehrmannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A Prague district court has ruled that a number of Czech owners of Skoda and Volkswagen cars qualify for 533 million crowns (£18.53 million) in compensation linked to VW's diesel emissions scandal, the ruling seen by Reuters said. The decision, ordering Volkswagen to pay the full amount, is open to appeal but only on procedural grounds. Volkswagen said it would launch an appeal.
German carmaker Volkswagen could place additional shares of its Traton unit after the truckmaker's planned initial public offering, Volkswagen finance chief Frank Witter said in a call with journalists on Monday. The Wolfsburg-based conglomerate said last week it was aiming to raise up to 1.9 billion euros (£1.7 billion) by listing Traton. Volkswagen has scaled back earlier ambitions to list up to a quarter of the unit by opting to float a 10% stake.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Volkswagen AG’s plan to list its truck division later this month will test whether it can pull off a feat that was once unthinkable for the German automotive giant: get smaller.For decades, the world’s biggest carmaker only knew how to expand -- adding Bentley luxury cruisers, Ducati racing bikes and Scania heavy trucks while taking its network of factories well past the 100 mark and its headcount over 640,000.Even in the face of the debilitating diesel-cheating scandal in 2015, the manufacturer didn’t trim its portfolio, bolstering investment in electric cars instead and even creating a new division for mobility services.Now with the pace of change in the auto industry quickening, Volkswagen is trying its hand at trimming the empire.If the listing of a minority stake in Traton SE -- a truck and bus maker with three vehicle brands and valued at as much as 16.5 billion euros ($18.5 billion)-- goes well, it would give Chief Executive Officer Herbert Diess more sway to balance the often diverging interests of VW shareholders including the Porsche and Piech owner family, Lower Saxony and powerful labor unions.Healthy Valuation“Traton’s IPO pricing suggests a healthy valuation which puts a spotlight on VW’s significant sum-of-its-parts disconnect,” RBC Capital Markets analyst Tom Narayan said in a note. Concerns over the company’s ability to switch to electric vehicles is “unfairly” weighing on its share price, the analyst said.Volkswagen rose 0.2% to 141.42 euros at 11:46 a.m. in Frankfurt trading, taking gains this year to 1.8%.For now, Diess is seeking deeper technology partnerships and the possible sale of assets like transmission maker Renk AG and MAN Energy Solutions, which develops engines. A successful Traton listing, targeted for June 28, could even spark rival Daimler AG to follow suit with a carve-out of its own truck business.The truck group comprises three main assets, Scania, MAN and Volkswagen-branded budget trucks sold in South America and Africa, as well as a unit offering digital services to fleet operators. With 29 production and assembly sites globally, the business last year sold 223,000 vehicles. While that’s 14% more than a year earlier, it’s less than half of Daimler’s truck division, the world’s biggest.Volkswagen is offering 50 million Traton shares at 27 euros to 33 euros apiece, plus a possible over-allotment of 7.5 million shares, meaning at the top end of the price range, the sale would raise as much as 1.9 billion euros. Here are the key points in one of the biggest initial public offerings in Europe this year:Sales PitchTraton is looking to woo investors by combining the best-in-class technology and strong margins of the Scania unit with the prospect of a turnaround at MAN and growth potential in key markets, according to company presentations and research from advising banks seen by Bloomberg.The plan includes the following four pillars:StrengthsChief Executive Officer Andreas Renschler, 61, is the mastermind behind Traton. After helping to establish Daimler’s commercial vehicles business as the world’s largest, he was lured to Volkswagen in 2014. Despite the partly overlapping operations, he’s improved earnings over the past four years, mainly by enforcing closer cooperation between long-standing rivals Scania and MAN. Investor interest in Traton will largely be a bet on Renschler’s veteran skills to deliver in the cyclical truck market.The timing of the listing, which was delayed earlier this year, is complicated by global volatility. The window may be as good as it gets. Rival Volvo Group -- the main pure-play competitor -- has gained 26% this year.“It’s no secret that the market environment is very volatile,” VW Chief Financial Officer Frank Witter told reporters on Monday. “It’s not ideal, but it’s not bad either.”VW remains open to sell more Traton stock at a later stage, up to a maximum stake of 24.9%, if market conditions are supportive, he said.WeaknessesTraton has only small bridgeheads in the key North American and Chinese markets, and the prospects for expanding those positions face obstacles.In North America -- the truck industry’s largest profit pool -- Traton merely owns a 16.8% shareholding in Navistar International Corp., which doesn’t it allow it to do much. Lifting the stake will cost money and add complexity. Meanwhile, Navistar still faces fierce competition from market leaders -- Daimler’s Freightliner, Volvo’s Mack and Paccar Inc.While Daimler and Volvo have functioning production joint ventures in China, the world’s biggest truck market, Traton’s cooperation with Sinotruk Hong Kong Ltd., where its holds a 25% stake through MAN, has yet to deliver the hoped-for results.Alliances can fall short of aspirations to create economies of scale, with the recent tensions at the Renault-Nissan Alliance a fresh reminder of the difficulties in uniting separate cultures. Traton also has a cooperation with Hino Motors Ltd., a Toyota Group company, on electric technology, product development and purchasing.MAN has long attempted a turnaround, but improvements have been tepid compared to an aggressive restructuring at Volvo that doubled margins within roughly three years. MAN’s production footprint in high-cost Germany and a lineup that includes less-profitable medium-duty trucks limits the potential for improvement.(Updates with CFO comment in 14th paragraph.)To contact the reporter on this story: Christoph Rauwald in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Palazzo at email@example.com, Chris Reiter, Elisabeth BehrmannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The maker of plant-based burgers reported first-quarter earnings that exceeded Wall Street estimates last week, but the stock jumped because people betting against Beyond Meat went through the grinder.
Volkswagen aims to raise up to 1.9 billion euros ($2.1 billion) by listing truck unit Traton, it said on Friday, scaling back earlier ambitions to list up to a quarter of the unit by opting to float a 10% stake. The German carmaker said in a statement that the offering would be priced at 27-33 euros per share, which Jefferies analysts said valued Traton at a slight discount to industry peers but at a premium to Swedish competitor Volvo. "We will now meet investors across the globe to convey our Traton story and the future potential of the group," Traton Chief Executive Andreas Renschler said in a statement late on Friday after the publication of Traton's IPO prospectus.
(Bloomberg Opinion) -- Friedrich Merz, the conservative politician who has a shot at becoming Germany’s next chancellor, published an article this week that urged his country to get more of its citizens to invest in the stock market.His intervention seemed a touch self-interested: Merz chairs the German arm of fund manager BlackRock Inc. He does have a point though. Only one out of six Germans owns shares. Most prefer to put their money in savings accounts, which have generated next to nothing in returns for a decade.Volkswagen AG’s initial public offering of its Traton SE trucks business won’t do much to bring about the revolution sought by Merz. Late on Thursday, Europe’s biggest auto manufacturer confirmed it will part with only a small stake in the spinoff, which will have a free float of 11.5 percent at most.While Traton will be one of Europe’s biggest listings this year, the so-called “people’s carmaker” isn’t creating another “people’s share.” (That’s the name adopted by Deutsche Telekom AG for its massive IPO 20 years ago, when huge numbers of citizens bought shares. The subsequent dotcom bust and drop in Telekom’s stock is one reason why Germans shun the market today).Nevertheless, the spinoff will be welcomed by VW’s minority shareholders, who are unhappy about the company’s hefty “conglomerate discount” (where the group is valued less than its combined assets). If Traton goes well, maybe other big VW brands could be hived off from the parent.VW isn’t being especially aggressive on pricing as it tries to make sure the IPO succeeds. The 15 billion euro ($16.9 billion) valuation – at the the midpoint of the IPO range – is well below the 25 billion euros mooted in the press earlier this year. Truck-making rival Volvo AB trades on 9.5 times last year’s earnings. Applying the same multiple, Traton would be worth about 13.5 billion but its profitability has some room to expand as it increases parts sharing between its Scania and MAN brands. The company is targeting a 9 percent operating margin over the long term, compared to 6.4 percent last year.Having already suspended the IPO process once this year, ostensibly due to poor market conditions, VW is right to be careful. While stock markets aren’t far off record highs, investors everywhere have grown more skittish. The volatility of Uber Technologies Inc.’s shares since its May stock-market debut shows it makes sense not to be greedy.With only up to 1.9 billion euros of anticipated proceeds, selling more stock or aiming for a higher valuation wouldn’t do much to boost VW’s coffers anyway. The company already has 16 billion euros of net liquidity, which seems plenty. If it needs more funds, it can always sell more shares in Traton later, while still retaining control. Siemens AG adopted a similar strategy when it sold a 15 percent stake in its healthcare business last year. Those shares have performed well.From the perspective of a VW investor, the crucial thing is that the company gets this IPO done. The German giant is rightly criticized for its byzantine governance, where family, employee and regional government interests often take priority. It’s refreshing to see it do something explicitly for its shareholders.Just as ordinary Germans still need convincing of the wonders of the capital markets, the same could be said for its biggest carmaker. Traton at least promises a change in direction.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
VW surprised investors last month when it revived its effort to float Traton just weeks after shelving the plan in March. The sale will mark a litmus test not only for IPO demand in a European stock market that turned in its worst month in 3 1/2 years during May, but also for the ability of VW’s management to push through deeper structural change. “We are now all set for the decisive phase,” VW Chief Financial Officer Frank Witter said in the statement.
For the second time in five years, workers at Volkswagen AG's Chattanooga, Tennessee, assembly plant have been voting this week on whether to unionise, potentially handing the United Auto Workers its first toehold in the U.S. South. The vote by 1,700 workers at VW's Chattanooga plant, which makes the Passat sedan and the Atlas SUV, comes at a pivotal time for the UAW. Its membership fell 8% last year and the union faces contentious contract talks this summer with Detroit automakers General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV.
For the second time in five years, workers at Volkswagen AG's Chattanooga, Tennessee, assembly plant have been voting this week on whether to unionize, potentially handing the United Auto Workers its first toehold in the U.S. South. The vote by 1,700 workers at VW's Chattanooga plant, which makes the Passat sedan and the Atlas SUV, comes at a pivotal time for the UAW. Its membership fell 8% last year and the union faces contentious contract talks this summer with Detroit automakers General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV.
Volkswagen and Ford are close to reaching a deal on a partnership for developing self-driving and electric cars, the German carmaker's chief executive said on Thursday. Volkswagen and the No. 2 U.S. automaker signed a deal in March to develop a pickup truck, and have been in talks about extending the alliance to include autonomous driving and mobility services, as well as Ford's use of VW's MEB electric-vehicle platform.
Talks with Ford are “progressing well” and are close to being finalized, Diess said in prepared remarks seen by Bloomberg and delivered at a gathering of the carmaker’s 500 most senior executives in Wolfsburg, Germany. The pact, which already includes co-producing vans and pickups trucks, is part of VW’s plan to add scale and save costs to counter slower sales and record spending requirements to develop new technologies.
A partnership between Volkswagen and self-driving vehicle startup Aurora hasended, according to a report by the Financial Times, citing three peoplefamiliar with the matter
Volkswagen has ended its partnership with self-driving car software firm Aurora, two days after the Silicon Valley start-up said it would build autonomous platforms for commercial vehicles with Fiat Chrysler Automobiles. "The activities under our partnership have been concluded,” a VW spokesman said in a statement on Tuesday following an earlier Financial Times report on the move which said VW now wanted to work with Ford Motor Co on autonomous driving.
Volkswagen has ended its relationship with Amazon-backed self-driving start-up Aurora, and is now considering partnerships with Ford and competitor Argo AI.