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Rumorpile: Lucid Motors Had Takeover Talks With Ford
William Maley posted an article in Automotive Industry
Electric car startup Lucid Motors has been in process of trying to raise extra cash to move forward with the development of their first model, the Air and a factory in Arizona. But Bloomberg has learned from sources at the startup that Lucid reached out to Ford about a possible sale. Reportedly, Ford said they are not looking for a deal at the moment. Currently, the blue oval is undergoing a 100-day review by new CEO Jim Hackett. Interestingly, a source went on to say that Ford isn't ruling out a deal down the road. For the time being, Lucid has called in Morgan Stanley to help with raising the extra funds. “We don’t have the money in place. That’s why we need to secure Series D,” said Lucid Motors' Chief Technology Officer Peter Rawlinson to Bloomberg back in April. “It would be irresponsible to start moving earth or start anything until we have a financial runway to execute that professionally and with absolute integrity.” When asked about how the investments were going this month, Rawlinson said the company is "thrilled with the response from investors." He declined to comment on the scale of investments and the possible meeting with Ford. A Ford spokeswoman said "We don't comment on speculation." Source: Bloomberg -
Electric car startup Lucid Motors has been in process of trying to raise extra cash to move forward with the development of their first model, the Air and a factory in Arizona. But Bloomberg has learned from sources at the startup that Lucid reached out to Ford about a possible sale. Reportedly, Ford said they are not looking for a deal at the moment. Currently, the blue oval is undergoing a 100-day review by new CEO Jim Hackett. Interestingly, a source went on to say that Ford isn't ruling out a deal down the road. For the time being, Lucid has called in Morgan Stanley to help with raising the extra funds. “We don’t have the money in place. That’s why we need to secure Series D,” said Lucid Motors' Chief Technology Officer Peter Rawlinson to Bloomberg back in April. “It would be irresponsible to start moving earth or start anything until we have a financial runway to execute that professionally and with absolute integrity.” When asked about how the investments were going this month, Rawlinson said the company is "thrilled with the response from investors." He declined to comment on the scale of investments and the possible meeting with Ford. A Ford spokeswoman said "We don't comment on speculation." Source: Bloomberg View full article
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Cadillac is offering 400 of its smallest dealers a buyout if they don't want to be part of the ambitious and contentious Project Pinnacle. Automotive News reports the offers will range from $100,000 to $180,000. The dealers eligible for the buyout sold less than 50 new Cadillac models in 2015. While the 400 dealers make up 43 percent of Cadillac's total number of dealers in the U.S. (around 925), this group only made up 9 percent of total sales last year. Cadillac President Johan de Nysschen said the buyouts is to give those an alternative who don't want to forward with the new program. “This is going to be a long, arduous and challenging journey and certainly not one for the faint-hearted. Some people may choose to make life a little easier than what lies ahead,” said de Nysschen. de Nysschen did say while Cadillac has too many dealers compared to their rivals, the buyout program isn't meant to be seen as a way to get rid of low-volume dealers. Project Pinnacle is a new incentive program that will separate dealers into five tiers based on sales volume. Each tier offers a varying level of customer perk along with different requirements for services and facilities. For example, small stores cannot stock vehicles on site. Instead, they would offer a virtual showroom for customers to explore and order a vehicle. This program has gotten backlash from dealer groups, saying it would violate franchise laws and be unfair to the smaller dealers. Those who have been offered the buyout have until November 21st to either take it or move forward with Project Pinnacle, which is expected to begin January 1st. Source: Automotive News (Subscription Required) -
Cadillac is offering 400 of its smallest dealers a buyout if they don't want to be part of the ambitious and contentious Project Pinnacle. Automotive News reports the offers will range from $100,000 to $180,000. The dealers eligible for the buyout sold less than 50 new Cadillac models in 2015. While the 400 dealers make up 43 percent of Cadillac's total number of dealers in the U.S. (around 925), this group only made up 9 percent of total sales last year. Cadillac President Johan de Nysschen said the buyouts is to give those an alternative who don't want to forward with the new program. “This is going to be a long, arduous and challenging journey and certainly not one for the faint-hearted. Some people may choose to make life a little easier than what lies ahead,” said de Nysschen. de Nysschen did say while Cadillac has too many dealers compared to their rivals, the buyout program isn't meant to be seen as a way to get rid of low-volume dealers. Project Pinnacle is a new incentive program that will separate dealers into five tiers based on sales volume. Each tier offers a varying level of customer perk along with different requirements for services and facilities. For example, small stores cannot stock vehicles on site. Instead, they would offer a virtual showroom for customers to explore and order a vehicle. This program has gotten backlash from dealer groups, saying it would violate franchise laws and be unfair to the smaller dealers. Those who have been offered the buyout have until November 21st to either take it or move forward with Project Pinnacle, which is expected to begin January 1st. Source: Automotive News (Subscription Required) View full article
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William Maley Staff Writer - CheersandGears.com December 6, 2012 A month a after American Suzuki Corporation filled for bankruptcy and announced the closure of its automotive branch, 98% of its dealers (213 dealers) have agreed to a settlement offered by the company. The settlement would compensate dealers 50% within ten days of the agreement, with the rest following after the bankruptcy proceeding. The settlements also allow former dealers to operate as a service centers to provide warranty and repair services for Suzuki vehicles. "We greatly value our relationship with our customers, and it is very important to us that they continue to receive the necessary support from ASMC during and after our restructuring. As these agreements demonstrate, we are working within our current U.S. automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations," said Freddie Reiss, American Suzuki's chief restructuring officer. Source: Automotive News (Subscription Required) 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. Related Stories: Suzuki Vehicles Bid Adieu, Files Chapter 11 Suzuki Dealers Are Stuck Between A Rock And A Hard Place -
William Maley Staff Writer - CheersandGears.com December 6, 2012 A month a after American Suzuki Corporation filled for bankruptcy and announced the closure of its automotive branch, 98% of its dealers (213 dealers) have agreed to a settlement offered by the company. The settlement would compensate dealers 50% within ten days of the agreement, with the rest following after the bankruptcy proceeding. The settlements also allow former dealers to operate as a service centers to provide warranty and repair services for Suzuki vehicles. "We greatly value our relationship with our customers, and it is very important to us that they continue to receive the necessary support from ASMC during and after our restructuring. As these agreements demonstrate, we are working within our current U.S. automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations," said Freddie Reiss, American Suzuki's chief restructuring officer. Source: Automotive News (Subscription Required) 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. Related Stories: Suzuki Vehicles Bid Adieu, Files Chapter 11 Suzuki Dealers Are Stuck Between A Rock And A Hard Place View full article
