Posts belonging to Category automobile

Tesla needs funding to boost Model 3 production

Tesla seeks $1.5 billion junk bond issue

Tesla Inc (TSLA.O) said on Monday it would raise about $1.5 billion through its first-ever offering of junk bonds as the U.S. luxury electric car maker seeks fresh sources of cash to ramp up production of its new Model 3 sedan.

The move to issue junk bonds – lower-quality investments that offer higher yields – represents a bet by Tesla Chief Executive Elon Musk that bond investors will be as hungry as stock investors to back the company on expectations that its Model 3 will be a hit.

Tesla shares are up 67 percent this year, pushing the company’s market value to about $60 billion, above that of top U.S. automakers General Motors Co (GM.N) and Ford Motor Co (F.N), even though Tesla has yet to make an annual profit.…   Tue.,  08  August 2017

Tesla: 1,800 Model 3 reservations a day

The waiting list for Tesla’s new Model 3 is growing fast

Tesla (TSLA) said Wednesday it is now averaging more than 1,800 net reservations each day for its cheaper electric car, following an event last week to hand over keys to the first 30 Model 3 vehicles. Tesla did not provide an updated figure for its total waiting list. At the event last week, Tesla CEO Elon Musk said the reservation number was over 500,000. On a conference call with analysts Wednesday, he clarified the number was actually 455,000, including cancellations.

The strong demand is a mixed blessing for Tesla as it grapples with scaling up production to make good on deliveries for its first mass market car. Tesla said it remains “on track” to hit its production goals. Tesla expects to produce 1,500 Model 3 vehicles in the upcoming third quarter, 5,000 vehicles produced per week by the end of this year and 10,000 per week by the end of 2018.…   Thu.,  03  August 2017

The bright future of the electric car

All Volvo cars to be electric or hybrid from 2019

All new cars launched by Volvo from 2019 onwards will be partially or completely battery-powered, in what the company called a “historic end” to building models that only have an internal combustion engine. Between 2019 and 2021, the firm will introduce five 100% electric models, and ensure the rest of its conventional petrol and diesel range has a hybrid engine of some form. It is the first major manufacturer to make such a bold move.

Håkan Samuelsson, the Volvo chief executive, said: “This announcement marks the end of the solely combustion engine-powered car.”…   Thu.,  06  July 2017

Japanese airbag maker Takata files for bankruptcy

Takata would be bought for $1.6 billion by U.S.-based Key Safety Systems

Japan’s Takata Corp (7312.T), the firm at the centre of the auto industry’s biggest ever product recall, filed for bankruptcy protection in the United States and Japan, and said it would be bought for $1.6 billion by U.S.-based Key Safety Systems.

In the biggest bankruptcy of a Japanese manufacturer, Takata faces tens of billions of dollars in costs and liabilities resulting from almost a decade of recalls and lawsuits.…   Mon.,  26  June 2017

General Motors says Venezuela illegally seizes auto plant

The seizure comes amid a deepening economic crisis

General Motors said on Wednesday that Venezuelan authorities had illegally seized its plant in the industrial hub of Valencia and vowed to “take all legal actions” to defend its rights.

The seizure comes amid a deepening economic crisis in leftist-led Venezuela that has already roiled many US companies.…  Thu.,  20 April 2017

String of power outages in South Australia

Tesla’s Musk offers to fix South Australia’s power crisis in 100 days

Tesla Inc boss Elon Musk on Friday offered to save Australia’s most renewable-energy dependent state from blackouts by installing $25 million worth of battery storage within 100 days, and offering it for free if he missed the target. The offer follows a string of power outages in the state of South Australia, including a blackout that left industry crippled for up to two weeks and stoked fears of more outages across the national electricity market due to tight supplies.

Musk made the offer on social media, and the government said it could consider backing such a battery roll out by Tesla.…  Mon,  13 March 2017

General Motors wants to sell Opel

GM shares could climb 35 percent 

General Motors Co (GM.N) shares could climb by as much as 35 percent if it succeeds in selling its European Opel brand and focuses on its healthier markets, Barron’s said on Sunday. Last week, GM confirmed reports that it was in talks to sell its Opel business to Paris-based PSA Group, which manufactures brands including Peugeot. If the deal goes through, it could net GM as much as $1 billion in cash, Barron’s says, citing analysts. However, the real value from the sale would come from offloading a money-losing business and refocusing on operations in China, Latin America and North America, it said.

Last year, GM reported a $257 million operating loss from its Opel unit. Cutting away Opel could gain GM nearly $1 billion in additional annual cash flow, on top of the immediate proceeds from the deal, Barron’s said.…  Mon.,  20 February 2017

Record profit for GM

GM sells 10 million cars for first time thanks to China

Strong sales in China more than made up for slower sales in the United States. The milestone led GM, the largest American automaker, to record profit. GM was in third place among world automakers, behind Volkswagen (VLKAF), which sold 10.3 million cars, and Toyota (TM), which sold 10.2 million. GM (GM) was the world’s largest automaker for 77 years but lost the title to Toyota in 2008. Volkswagen topped global sales for the first time in 2016.

China is now GM’s largest market. Sales growth there lifted it to volume it never achieved when it was the world’s biggest automaker. GM recorded its fourth straight year of record sales even as U.S. sales fell slightly, the first decline in GM’s home market since 2009. … Wed.,  08 February 2017

EU is a vital economic market for UK Cities

The EU is the biggest export market for almost every single one of the UK’s 62 cities

The European Union is by far the biggest export market for UK cities, and it won’t be easily replaced by signing new trade agreements with the rest of the world, according to a report by policy group Centre for Cities. The EU accounts for 46% of all cities’ exports, making it three times larger than the USA and 11 times larger than China, the report said. In total, cities accounted for 62% of Britain’s total exports in 2014. London was the largest exporter, responsible for just over a quarter of all of the nation’s exports to other countries. … Mon.,  30 January 2017

‘Hard Brexit’ ‘disastrous’ for jobs in Britain — and it’s not just finance

Restrictions on visa and fees up will hurt academia in a very bad way

Britain has a number of sectors that will suffer in terms of funding and jobs post-Brexit and finance won’t be the one victim, says one of the most prominent economists in the UK. Professor Erik Berglof, director of the Institute of Global Affairs (IGA) at the London School of Economics, told Business Insider in an interview at the World Economic Forum that “the kind of total break in areas like the automotive industry, aerospace, and other sectors” will be “disastrous.” … Mon.,  23 January 2017