Yesterday’s news that Nissan will buy a 34-percent controlling stake in Mitsubishi for $2.2 billion was the latest win for Carlos Ghosn, the man behind the Renault-Nissan Alliance of 1999 and possessor of many fingers in many pies.
Ghosn, CEO of both Nissan and Renault, inked the agreement with Mitsubishi as the other automaker battles a misleading gas-mileage scandal. At a price of 468.52 yen/share, Ghosn’s purchase of new shares was a smoking deal. Mitsubishi shares traded for 1,100 yen just last December.
What becomes of the two companies now? And how will Ghosn’s world-straddling empire benefit by snapping up beleaguered Mitsubishi? (Read More…)
Twelve countries, including the United States, reached an agreement Monday on an historic trade agreement that could economically tie together more than 400 million people in Asian Pacific and American countries. The pact would cover trade for wide ranging products, from rice to pharmaceutical drugs to cars.
The Trans-Pacific Partnership, which negotiators have been working on for eight years, would thaw trade relations among countries included in the regional zone, including Japan and the United States. For automakers in both countries, the tentative deal includes provisions for Japanese automakers to (eventually) bring light-duty trucks to the U.S. For American automakers, part of the proposed agreement included a side deal between America and Japan to allow access for U.S. automakers to traditionally closed Japanese markets.
The agreement faces an uphill battle to get congressional approval; House Republicans and presidential candidates already have roundly dismissed the deal.
A possible partnership deal between North American countries and Pacific countries may include provisions to penalize Asian governments for not opening up their markets enough for U.S. automakers, Bloomberg reported.
According to the report, negotiators are close to concluding talks regarding automobiles, which has been a contentious point during the talks. The CBC reported that talks in Atlanta were at a critical stage over pharmaceutical drugs, and any eventual deal may be delayed by an upcoming G20 meeting in Turkey.
Talks regarding automobiles have been focused on sourcing local content for each car. North American Free Trade Association rules mandate that cars made within the zone have 62.5 percent of its content sourced within the zone. Asian manufacturers have pressed for lower standards for sourced content in a bid for reduced manufacturing costs.
General Motors will invest $5 billion to build a global line of cars with Shanghai-based SAIC Motors that will be sold in Brazil, China and other emerging markets, the automaker announced Tuesday.
The cars won’t be sold in the United States, according to the statement.
The global vehicles will go on sale starting in 2019 and the automaker expects the line to eventually produce roughly 2 million cars annually.
Demand from the Middle East and Asia has helped fuel a new record in U.S. auto exports for the third consecutive year.
Automotive exports from European and American manufacturers may suffer sanctions by Russia in retaliation for more sanctions imposed upon by the European Union and the United States.
Chrysler will re-badge the Mitsubishi Attrage (the sedan version of the much-loved Mitsubishi Mirage) for sale in Asian markets. Sounds crazy, right? Not really.
This is Part 4 of a 5 Part-series about how the Chinese car manufacturers are faring abroad.
In the first 3 parts of this series we have observed that Chinese carmakers have managed their expansion into Africa, Latin America and Eastern Europe by securing less developed markets and using them as anchor points for a more widespread presence in these regions. In this context it’s interesting to note that in their own ‘backyard’, Asia, the same strategy has not been met with the same success, with only a handful of small markets in the region ‘cracked’ so far..
Myanmar was once a pariah state known for its brutal military government and mistreatment of human rights activists like Aung San Suu Kyi. But democratic reforms and an easing of trade sanctions by Western governments means that doing business in Myanmar is now feasible – and GM is the latest automaker looking to establish a footing in the Asian country.
Labor leaders in South Korea are scrambling to convince GM to retain production of the Chevrolet Cruze in South Korea, though GM says that the move to 5 global facilities is a done deal.
Uh-oh: Our colleagues and fellow market watchers in Malaysia were waiting and waiting for market data for the month of July, but none arrived. With August about to end, they stared to ask questions. They were told there won’t be any data. No, it wasn’t because Malaysia suddenly is like Europe. In the Old Country, July data traditionally are supplied in September,because Europe is on vacation in August.
No, it was because Proton suddenly refused to supply its data. (Read More…)