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We weren't expecting this: Nissan, the automaker who discovered the manipulation of fuel economy figures at Mitsubishi Motors, is currently in the final stages of buying a controlling stake into the company. According to reports from NHK and the Nikkei Asian Review, Nissan will spend roughly 200 billion Yen (about $1.8 billion) to acquire over 30 percent interest in Mitsubishi Motors. This would make Nissan the largest shareholder in the company, surpassing Mitsubishi Heavy Industries, which currently has a 20 percent stake. This news comes after Mitsubishi announced that all of its models sold in Japan since 1991 may have inflated fuel economy numbers. Since the scandal came to light, shares in Mitsubishi Motors have dropped 43 percent. Sales of Mitsubishi vehicles in Japan have also taken a turn for the worse. Mitsubishi Motors says they have enough money to cover the scandal and will not seek help from Mitsubishi group companies. Why would Nissan want a controlling stake in Mitsubishi? A couple of reasons. One, Mitsubishi vehicles are very popular in markets such as Thailand and Indonesia. In fact, Asia makes 50 percent of the company's group operating profit. There is also talk about the two cooperating on electric vehicles. Both companies will hold board meetings tomorrow to discuss the capital tie-up and how the shares will be distributed. Source: Bloomberg, NHK, Nikkei Asian Review UPDATE: Both Mitsubishi and Nissan confirmed they are in talks this morning in Japan. "Nissan and Mitsubishi are discussing various matters including capital cooperation, but nothing has been decided," according to statements released by both companies. Reuters confirms that the board of both companies will be holding separate meetings today to discuss this issue. Source: Reuters -
We weren't expecting this: Nissan, the automaker who discovered the manipulation of fuel economy figures at Mitsubishi Motors, is currently in the final stages of buying a controlling stake into the company. According to reports from NHK and the Nikkei Asian Review, Nissan will spend roughly 200 billion Yen (about $1.8 billion) to acquire over 30 percent interest in Mitsubishi Motors. This would make Nissan the largest shareholder in the company, surpassing Mitsubishi Heavy Industries, which currently has a 20 percent stake. This news comes after Mitsubishi announced that all of its models sold in Japan since 1991 may have inflated fuel economy numbers. Since the scandal came to light, shares in Mitsubishi Motors have dropped 43 percent. Sales of Mitsubishi vehicles in Japan have also taken a turn for the worse. Mitsubishi Motors says they have enough money to cover the scandal and will not seek help from Mitsubishi group companies. Why would Nissan want a controlling stake in Mitsubishi? A couple of reasons. One, Mitsubishi vehicles are very popular in markets such as Thailand and Indonesia. In fact, Asia makes 50 percent of the company's group operating profit. There is also talk about the two cooperating on electric vehicles. Both companies will hold board meetings tomorrow to discuss the capital tie-up and how the shares will be distributed. Source: Bloomberg, NHK, Nikkei Asian Review UPDATE: Both Mitsubishi and Nissan confirmed they are in talks this morning in Japan. "Nissan and Mitsubishi are discussing various matters including capital cooperation, but nothing has been decided," according to statements released by both companies. Reuters confirms that the board of both companies will be holding separate meetings today to discuss this issue. Source: Reuters View full article
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By William Maley Staff Writer - CheersandGears.com March 19, 2013 Last month, we reported that Fisker had two possible bidders for a possible stake in the company. The two bidders in question were Zhejiang Geely Holding Group and Dongfeng Motor Group. At the time, Fisker was leaning towards Geely due to the company's experience of acquiring a foreign automaker (Volvo) and management structure. But Geely has dropped their bid for Fisker. Two sources tell Reuters that the reason Geely dropped their bid was due to Fisker's obligations to the U.S. Government which included obligation to restore capacity and jobs at Fisker's Delaware plant according to a schedule imposed by the government. "Those obligations are too complicated to handle and seem too risky. The plan's footprint was too big. It would take a long, long time to fill up the plant with products and restore employment there," a source said. This leaves Dongfeng Motor Group as the sole bidder for Fisker. The company sent their final bid last week. As for those who think this was why former Fisker chairman and founder Henrik Fisker stepped down, sources explain this is not related. Source: Reuters William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
By William Maley Staff Writer - CheersandGears.com March 19, 2013 Last month, we reported that Fisker had two possible bidders for a possible stake in the company. The two bidders in question were Zhejiang Geely Holding Group and Dongfeng Motor Group. At the time, Fisker was leaning towards Geely due to the company's experience of acquiring a foreign automaker (Volvo) and management structure. But Geely has dropped their bid for Fisker. Two sources tell Reuters that the reason Geely dropped their bid was due to Fisker's obligations to the U.S. Government which included obligation to restore capacity and jobs at Fisker's Delaware plant according to a schedule imposed by the government. "Those obligations are too complicated to handle and seem too risky. The plan's footprint was too big. It would take a long, long time to fill up the plant with products and restore employment there," a source said. This leaves Dongfeng Motor Group as the sole bidder for Fisker. The company sent their final bid last week. As for those who think this was why former Fisker chairman and founder Henrik Fisker stepped down, sources explain this is not related. Source: Reuters William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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By William Maley Staff Writer - CheersandGears.com February 26, 2013 The U.S. Treasury has began to sell off its remaining shares in General Motors, with a goal of selling it all by next March. Currently the U.S. Treasury owns more than 300 million shares in the auto maker, or about a 19% stake. In a statement, the Treasury said it "intends to sell its shares into the market in an orderly fashion and fully exit its remaining GM investment within the next 12-15 months, subject to market conditions." The Detroit News says the U.S. Treasury has recouped $29 billion from its $49.5 billion bailout to GM. To break even, the U.S. Treasury would need to get $72 per share, which will likely not happen. At this moment, GM's share price is $26.80. This would result in a $12 billion loss. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
William Maley Staff Writer - CheersandGears.com December 7, 2012 Today, Aston Martin announced that Italian private equity firm Investindustrial has purchased a 37.5% stake in the company for $241 million. Kuwaiti firm Investment Dar still holds a majority stake in the company. Aston Martin said the deal would allow them to pour $1 billion into new product, funding development through 2018. Investindustrial beat out Indian truck and tractor producer Mahindra and Mahindra. Andrea Bonomi, Investindustrial's senior principal said that the group hopes to transform Aston Martin in a similar way to its revamp of Italian motorcycle company Ducati by expanding Aston's model range and strengthening its global dealership network. Analysts are skeptical about this deal, saying that Investment Dar was trying to lure an automaker to buy up Aston and is settling with a temporary fix. "It doesn't look like a long-term solution. This deal doesn't sort scale, access to technology, emissions or entry to new segments," said Bernstein analyst Max Warburton to Reuters. Source: Reuters William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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Aston Martin Sells 37.5% Stake To An Italian Firm
William Maley posted an article in Automotive Industry
William Maley Staff Writer - CheersandGears.com December 7, 2012 Today, Aston Martin announced that Italian private equity firm Investindustrial has purchased a 37.5% stake in the company for $241 million. Kuwaiti firm Investment Dar still holds a majority stake in the company. Aston Martin said the deal would allow them to pour $1 billion into new product, funding development through 2018. Investindustrial beat out Indian truck and tractor producer Mahindra and Mahindra. Andrea Bonomi, Investindustrial's senior principal said that the group hopes to transform Aston Martin in a similar way to its revamp of Italian motorcycle company Ducati by expanding Aston's model range and strengthening its global dealership network. Analysts are skeptical about this deal, saying that Investment Dar was trying to lure an automaker to buy up Aston and is settling with a temporary fix. "It doesn't look like a long-term solution. This deal doesn't sort scale, access to technology, emissions or entry to new segments," said Bernstein analyst Max Warburton to Reuters. Source: Reuters William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.
