Daimler's Breaking Up the Band: German Giant Plans Massive Corporate Overhaul
Daimler AG unveiled a new corporate structure on Thursday that splits its core businesses into a three legally independent entities, with one of the arms focusing entirely on mobility and financial services.
It’s a sign of the times as automakers press ever deeper into an uncertain tomorrow, all thanks to mobility and data services. “The new structure positions Daimler to tackle the rapid pace of change in the mobility sector and the corresponding strategic challenges,” explained Supervisory Board chairman Manfred Bischoff. “Legally independent divisions will sharpen our focus on the future success of the business.”
This is no small feat, as altering the structure involves reassigning more than 700 Daimler subsidiaries in over 60 countries. After which, Mercedes-Benz AG, Daimler Truck AG and Daimler Mobility AG will operate as one under the Daimler AG umbrella.
Ford Commits $4 Billion to the Future, Creates New AV Subsidiary
Ford Motor Company announced Tuesday that it has formed formed a subsidiary — Ford Autonomous Vehicles LLC — devoted entirely to autonomous vehicle development. That’s probably the catchiest name we’ve heard since Bank of America Corp or Waste Management Inc. However, you don’t need a clever moniker when you’re dumping $4 billion into a project, which Ford intends to do through 2023.
With all the current drama and distrust surrounding self-driving cars, we thought there was a chance automakers would cool off on pushing for it so aggressively. But while some OEMs curbed their futuristic rhetoric ever so slightly, practically everyone else kept the pedal to the metal — an analogy that will lose all meaning once computers drive us everywhere.
Let’s see what The Future™ looks like in and around Dearborn.
PSA Group Reaches Deal With General Motors to Purchase Opel
As expected, a transfer of General Motors’ subsidiary Adam Opel AG to European automaker PSA looks to be a done deal.
PSA’s board approved the deal on Friday, with an official announcement planned for early next week. Considering the European peripheral has cost GM $15 billion in losses since 2000, GM probably isn’t terribly sad to see Opel go.
With talks progressing all week, the two automakers focused on differences on about $10 billion worth of Opel outstanding pension deficiencies and a GM request that a PSA-owned Opel would not compete with its own Chevrolet-based lineup in China or in other overseas markets.
Tesla Could Have Trouble Meeting Its Looming Production Targets
After posting a profitable fall quarter, Tesla returned to spending more than it made. However, its fourth quarter losses, announced on Wednesday, were substantially less than originally assumed by analysts. The electric carmaker’s stock price continued to climb during the final three months of 2016, despite losing $448 million from its operations.
Tesla has been throwing a lot of money at projects and acquisitions. It recently purchased SolarCity and Grohmann Engineering, so going into the red was to be expected. However, the dark cloud looming in the distance isn’t related to capital — it’s about production.
Ford Creates a Spin-off of Its Most Popular Show
Ford Motor Company has decided it wants to do more than just sell cars and trucks.
On March 11, the automaker announced the creation of a new business subsidiary in the hopes of becoming a leader in the field of mobility services.
Ford Smart Mobility LLC will be headed by former Steelcase CEO Jim Hackett, who will leave Ford’s board of directors in order to take on the new position.
Ford joins a growing list of automotive rivals looking to diversify their operations by investing in the emerging field, the most prominent aspect of which is ride-sharing and ride-hailing services.
Carl Icahn Wants It All
Billionaire businessman and activist investor Carl Icahn wants to snatch up the last bits of Federal-Mogul Holdings Corporation he doesn’t already own, Automotive News reports.
The 80-year-old tycoon already owns an 82 percent share in the Southfield, Michigan-based global auto parts supplier, where he serves as chairman, but his recent offer of $7 a share could net him full ownership.
QOTD: Could Tesla Still Go Under?
The world is abuzz this week with news of the all-new Tesla Model X, which is a minivan that looks like it may at any moment take flight and get tangled up in some power lines.
Yes, ladies and gentlemen, that’s right: Tesla has brought the first gullwing minivan to market, and people are excited. And not just slightly excited. Elon Musk is giving press conferences to delighted admirers. Tesla fans are running up and down the streets in Palo Alto screaming “THE TESLA IS COMING! THE TESLA IS COMING!” And Pacific Gas & Electric engineers are currently on the job trying to figure out how to get the first Model X down from some high-voltage wires near Tarzana.
Essentially, it is Tesla pandemonium.
Hammer Time: To My Fellow Dealers
You may have noticed that car dealers get bashed by the mainstream media on a regular basis.
There are a few good reasons for that.
Ford CEO Mulally To Head Boeing Or Microsoft Soon?
The rumor mill has been grinding away as of late regarding the possible return of Ford CEO Alan Mulally to helm either one of two of Seattle’s many economic engines: Microsoft and Boeing. In the face of these rumors, Mulally has opted not to dispel the rampant speculation.
Question Of The Day: What Do You Want To Be When You Grow Up… Car Wise?
Another day at the office. Like most drones on a Friday afternoon, you’re wasting your time playing on the Internet. Thanks to a mid-level job that requires more presence than productivity.
The smell of slightly burnt coffee and the din of florescent lights is already starting to kill your weekend mojo. This is the time when you usually take a bit of the vodka that’s hidden under the lock and key of a nearby file cabinet, and mix it into whatever drinkable substance strikes your fancy at the soda machine.
You open the drawer and…. huh? Who put some Colt 45 malt liquor in there? Ice cold. Wow.
You pause for a second. Pop it open, and before you know it.