Up until yesterday, there were only two Ferrari Californias on Australia’s streets. The number is now down to one. Police have impounded the rare Ferrari California being driven by Financial Review motoring writer Rod Easdown. Baruthian car and driver were clocked by Australia’s finest at 231kmh, more than twice the legal limit.
A few weeks ago, we cited Canada’s Globe and Mail, which wrote with great insight: “It’s entirely possible the Magna bid is in serious trouble. Indeed, the obstacles-political, economic, financial and industrial-are formidable and the negotiations are just starting . . . . Let’s just say that Magna’s bid for Opel is shaping up to be the most complicated auto deal of the year.”
That was quite an understatement.
As little known Tengzhong itches to buy Hummer for reasons unknown, the two Chinese regulators who have to chop (put a big red stamp under) the deal can’t agree whether it’s a great or a dumb idea, Reuters reports. Chop the deal or chop off the head?
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China has become the biggest producer, consumer and exporter of electric vehicles in the world. But China’s people are facing huge problems buying and driving them.
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Well-heeled Mercedes Gullwing carnoscenti eagerly await the Mercedes AMG SLS, the 571 HP 6.3-liter-V8 powered, 315 km/h fast reminder that there was a 300SL in the rip-roaring 50s. But what about saving the planet? Not to worry!
The Arabs, who sit on a pile of oil, must know something we do not. They suddenly show a surprising interest in electric cars. Daimler just sold part of its 10 percent stake in the alleged electric-car manufacturer Tesla to Abu Dhabi’s Aabar Investments, Bloomberg reports. What’s up with that?
The situation in the collapsing French parts industry is turning explosive—literally. Workers at bankrupt French car parts maker New Fabris threaten to blow up their factory if they do not receive money from Renault and Peugeot, Reuters reports. The workers are occupying the New Fabris factory at Chatellerault, near Poitiers in central France.
Their ultimatum: Renault and PSA had better pay €30,000 ($41,800) to each of the 336 laid-off workers at the factory, a total of around €10 million. If they pay, they get the remaining stock of parts and the tooling. If not . . .
There is a lot of funny money flowing to dealers: Holdbacks, incentives, carry-over-allowances, packs and countless others. All in the name of moving the metal. Did you ever hear of a car company that sent the dealer cold hard cash, and then sent it again and again, if the dealer just asked for more? No single car sale involved? Never? You’ll hear it now, in this week’s installment of the Autobiography Of BS ©. Also in this episode: On the inside of roadside assistance.
Wendelin Wiedeking has his deal with the Sheik of Qatar. The Sheik of Qatar wants to put down €7B for 20 percent of the Porsche Holding, and for their option package that buys the Sheik 20 percent of Volkswagen. “The deal has been finalized,” Automobilwoche [sub] heard from usually indiscreet German bankers.
The Sheik’s money would nearly wipe out Porsche’s debt load, leaving only €2B to pay off. It would also mean the end of more profits than sales through derivatives, and the end of Wiedeking’s dream to get more than the 51 percent of Volkswagen Porsche currently owns. Under the deal, the Sheik would own 20 percent of Volkswagen directly, and he would own indirectly 20 percent of the 51 percent Porsche owns. Still with us?
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The worst recession in half a century will be prolonged as consumers see their jobs go away and their home prices head south, economists Nouriel Roubini and Robert Shiller warn on Bloomberg. The University of Michigan index of consumer sentiment fell by more than forecast to 64.6 from 70.8 in the prior month. And it may be time for some foreign automakers to evacuate crumbling Cartago, their countrymen caution.
Suzuki reported a precipitous 78 percent drop in US unit sales in June. Their first-half decline was 60 percent, the market’s worst. Mitsubishi is down 51 percent this year. Faltering since 2003, Mitsubishi doesn’t have far to fall. Mitsubishi “doesn’t make cars that are hot-sellers in the U.S.,” said CSM Worldwide analyst Masatoshi Nishimoto with polite Nipponese understatement. Sayonara?
Porsche, up to their eyeballs in €9B debt, resulting from their Davidian grab for giant Volkswagen, scheduled an extraordinary supervisory board meeting for July 23, Automobilwoche [sub] reports. On the agenda: How do we get out of this mess?
Who will end up owning Opel is turning more and more into a brawl along party lines. Officially, the seller is GM. The final arbiter will be the German government because they foot the bill to the tune of billions. Trouble is, the German government is divided. It is made up from a coalition between the center-right CDU and the center-left SPD. Both run the country. Both are on each other’s throats. Both are in a bitter fight for votes in the September national elections. Several states are also up for grabs. It’s a “super election year.” Both have their favorites. So who will it be?
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China’s passenger-vehicle sales skyrocketed a frightening 48 percent in June, the most stratospheric ascent since February 2006. According to Bloomberg, this “helped the nation extend its lead over the U.S. as the world’s largest auto market this year.” The car-nage in Bloomberg’s own words: (Read More…)
But will it be accepted? As reported yesterday, China’s BAIC has handed in a better offer for Opel. This gave everybody a reason to pause. Magna called off a board meeting that had been scheduled to give the go-ahead for Opel. GM and the German government are reading intently what BAIC proposes. BAIC proposes export of Opels to China. For a while, at least.
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For July 7, Magna had called a board meeting to rubber stamp the takeover plan of Opel. Now, Reuters says the board meeting has been delayed to July 14. Why, is anybody’s guess.
What is for sure is that the delay gives rival bidder Beijing Automotive (BAIC) more time to convince GM and especially the German government that their offer is better than Magna’s.
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