Detroit Bureau on Twitter

Archive for the ‘Daimler’ Category

Detroit Auto Show Not Ready to Wave Goodbye to Winter

Final January run to see over 30 new models debut.

by Paul A. Eisenstein on Dec.10, 2018

Toyota showed us a well-camouflaged Supra with chief engineer Tetsuya Tada at the Goodwood Festival.

The Detroit Auto Dealers Association has inked a seven-year deal with the City of Detroit that will ensure that the North American International Auto Show keeps running through at least the latter part of the next decade.

The deal also locks down the move from January to June that DADA, the sponsor of the show, announced earlier this year. That is expected to prove critical if the Detroit Auto Show is to regain its former glory or, at the very least, keep from slipping into second-tier status, something that seemed all too likely in the wake of a painfully quiet 2018 event that saw a single official media day wrap up the new car debuts shortly after noon.

Auto Show News!

The 2019 North American International Auto Show will clearly not have the luster of years past. Virtually the entire European contingent – including brands like Audi, BMW, Jaguar and Meredes-Benz – plan to sit it out. But there will still be enough on the calendar to keep the spotlight lit. Among the products set to make their official debut at the Cobo Hall convention center are the long-awaited Toyota Supra and the Lexus RC F which is being hailed as the brand’s fastest and most powerful model ever, save for its limited-edition LFA supercar.

(more…)

Daimler, BMW Mobility Joint Venture Delayed

Companies pushing on, meeting with U.S. authorities.

by Joseph Szczesny on Dec.10, 2018

Mobility enterprises, like Daimler's alliance with the Car2Go car-sharing service, are partnering more often, as Daimler is trying to do with BMW.

Delays in obtaining the necessary regulatory approvals have forced Daimler AG and BMW Group to push back their effort to establish a joint-venture mobility company.

The delay will force Daimler Financial Services to lower its earnings forecast for 2018. The division now expects EBIT to be significantly lower than in the previous year.

Business News!

The forecast for the Daimler Group’s EBIT in the 2018 financial year remains unaffected and unchanged. As previously announced, the transaction will not have any cash-flow impact on the industrial business, Daimler said in a statement, updating the plans for the joint venture. (more…)

European Auto Execs Meet with Trump, Aim to Head Off Expanded Trade War

VW signals a second U.S. plant is in the works.

by Paul A. Eisenstein on Dec.05, 2018

President Donald Trump met with the leaders of BMW, Daimler and Volkswagen.

Even as President Donald Trump was backpeddling on earlier comments suggesting the trade dispute with China had been defused, the former New York businessman was meeting with European auto industry executives worried that they could become targeted by yet another front in the trade war.

The president has signaled he may enact duties of 25% or more on vehicles imported from Europe, even though his own Commerce Dept. has backed away from plans to declare imported automobiles a threat to national security.

Global News!

Trump “shared his vision of all automakers producing in the United States and creating a more friendly business environment,” the White House said in a statement that followed the meeting with officials from BMW, Daimler and Volkswagen. (more…)

Ghosn Scandal Could Fracture Renault-Nissan Alliance

Handling of allegations against Ghosn raising questions.

by Paul A. Eisenstein on Nov.23, 2018

Carlos Ghosn was formally ousted as Nissan Chairman by the automaker's board on Thursday.

With relatively little debate, Nissan’s board voted to oust Chairman Carlos Ghosn on a Thursday afternoon emergency meeting at its headquarters in Yokohama, the latest move in a scandal that could see the man credited with saving the company remain in Japanese police custody for another week or more.

The 64-year-old Ghosn, who helped save the Japanese automaker in 1999 after it received a massive capital infusion from French carmaker Renault SA, was arrested on Monday upon returning to Japan and accused of both under-reporting his income by as much as $45 million, while also misusing company assets. Japanese media on Wednesday reported the Brazilian-born executive would remain in detention in Tokyo until prosecutors decide whether to bring a formal indictment.

Beyond the Headlines!

The arrest follows what Nissan CEO Hirota Saikawa described as a months-long investigation triggered by a “whistleblower.” But there are some questioning exactly what the case really involves, with the board of Nissan’s French alliance partner Renault SA notably choosing not to oust Ghosn as its own CEO while waiting for clear evidence. Several sources NBCNews.com spoke to went further, questioning why Ghosn was even arrested.

(more…)

Ford, VW Discussions Now Far More Wide-Ranging Than Originally Planned

by Paul A. Eisenstein on Nov.02, 2018

Ford and VW initially wanted to discuss cooperation on light commercial vehicles.

Talks between Ford and Volkswagen are covering far more territory than originally planned, when the two signed a memorandum of understanding in June that initially focused on joint development of commercial vehicles.

While Ford officials have told TheDetroitBureau.com there is no thought to an exchange of equity, virtually everything else seems at least open for discussion, with a number of key ventures being considered. According to various U.S. and European sources, these include joint development of a small pickup, cooperation on electrified and autonomous vehicles and possibly even collaboration on sales and marketing in trouble-spot markets, such as Europe and Latin America.

Breaking News!

Several reports have suggested that a major announcement could be in the offing, and a source close to the talks told TheDetroitBureau that “There could be an update by the end of the year.” But that person stressed that not all the discussions underway are likely to be resolved immediately, and could be spread out over months, even years – even “if everything (being negotiated) comes true.”

(more…)

Daimler AG Stumbles as Third Quarter Earnings Drop

CEO Zetsche expresses optimism about fourth quarter.

by Joseph Szczesny on Oct.25, 2018

Daimler AG's Dieter Zetsche expressed optimism about the fourth quarter.

Daimler Group earnings declined by 26% during the third quarter as earnings before interest and taxes dropped to 2.5 billion euros from the 3.4 billion posted in the third quarter of 2017.

Daimler’s net earnings of 1.76 billion euros were significantly below the prior-year figure of 2.23 billion euros but Daimler CEO Dieter Zetsche said the outlook for the balance of the year was encouraging.

Insight!

“The automotive industry and thus also Daimler are still in a very challenging environment. The continued high demand from our customers makes us confident for the fourth quarter,” Zetsche said. (more…)

Daimler Cuts Earnings Estimates as Outlook Gets Tougher

Mercedes-Benz Cars saw earnings slip, driving new forecast.

by Joseph Szczesny on Oct.19, 2018

Sales of the Mercedes-Benz GLE are off this year as are other models, causing Daimler to revise its earnings forecast downward.

Daimler AG trimmed its earnings outlook for 2018, blaming the rising cost of fines and litigation over the emissions from the company’s diesel engines and a sharp reduction in the earnings by Mercedes-Benz Cars for the expected decline.

“The main factor is an increase in expected expenses in connection with ongoing governmental proceedings and measures in various regions with regard to Mercedes-Benz diesel vehicles,” said as the company revised its financial guidance.

Business News!

“Furthermore, against the backdrop of a recent ruling by the European Court of Justice, provisions have been recognized for the potential need to take action on certain vehicles still operating with the previously used refrigerant R134a,” the company said. (more…)

Geely Chief Denies Family Ties to China’s President

Li Shufu looks to avoid charges of favoritism.

by Joseph Szczesny on Oct.19, 2018

Geely Chairman Li Shufu sought to eliminate speculation about familial ties and special treatment by China's president.

Geely Automobile Holdings Ltd has moved to end speculation that its entrepreneurial chairman, Li Shufu, has benefited from political ties to China’s President for life, Xi Jinping.

Li Shufu, who is increasingly active in the global automotive industry, has moved to address the long-standing speculation that his wife was related to Chinese President Xi Jinping.

Business News!

The carmaker, which owns a stake in Germany’s Daimler and the firm that makes London black cabs as well as Volvo Cars, disclosed in a filing the name of his spouse was Li Wang, and she jointly held 4.9 million shares in the firm.  (more…)

German Automakers Face 50:50 Chance of Collapse, VW CEO Warns

Herbert Diess warns battery-cars could cost jobs – and may not be as clean as promised.

by Paul A. Eisenstein on Oct.16, 2018

VW boss Herbert Diess, left,helps unveil the VW BUDD-e and eGolf Touch electric concepts.

When the U.S. economy collapsed a decade ago two of the three Detroit-based automakers plunged into bankruptcy, surviving only with the help of a massive federal bailout – and that’s the fate that could be facing the German auto industry, as well, the CEO of Volkswagen warned today.

The country’s powerful auto industry faces a 50:50 chance of suffering the same fate that nearly destroyed Detroit’s Big Three manufacturers, Herbert Diess said during a supplier conference in Wolkfsburg VW’s home town.

Business News!

“From today’s point of view the chances are perhaps 50-50 that the German auto industry will still belong among the global elite in 10 years’ time,” said Diess, who was appointed VW’s chief executive earlier this year, following a senior management shake-up.

(more…)

Future of Alliance with Nissan/Renault the Big Question as Zetsche Prepares to End Role as Daimler CEO

Zetche and Nissan/Renault’s Ghosn insist there is more to come during Paris new conference.

by Paul A. Eisenstein on Oct.03, 2018

Zetsche and Ghosn first met when the German exec was working at Freightliner and the Brazilian-born Ghosn worked for Michelin.

Since launching the first in a broad series of joint ventures nine years ago, Daimler AG and the Nissan/Renault/Mitsubishi Alliance have generated what they claim to be billions of dollars in “synergies” that have allowed them to expand their product lines and grow into new markets.

But in recent months, the future of that partnership has come under question. The last major new project was announced three years ago. And now, with Daimler Chief Executive Dieter Zetsche planning to relinquish the CEO title next year, that has raised new questions about whether his successor, Ola Kallenius, would keep the alliance going.

Subscribe Now!

“Without the chemistry between us, maybe this wouldn’t have happened,” said Zetsche, during a joint news conference with Nissan/Renault/Mitsubishi Alliance chief Carlos Ghosn. But considering the results the partnership has generated, “I don’t see from my perspective why the momentum in this relationship should change.”

(more…)