|Bid||1.5300 x 840000|
|Ask||1.5486 x 840000|
|Day's Range||1.5242 - 1.5530|
|52 Week Range||1.1300 - 2.1200|
|Beta (3Y Monthly)||0.41|
|PE Ratio (TTM)||7.20|
|Forward Dividend & Yield||0.04 (2.53%)|
|1y Target Est||N/A|
Aug.20 -- Bill Russo, a former Chrysler executive and now chief executive officer of consultancy Automobility Ltd., talks about Chinese electric vehicle makers including Geely Automobile Holdings Ltd. and BYD Co., and its foreign competitors. He speaks with Bloomberg's Paul Allen and Shery Ahn on "Bloomberg Daybreak: Asia."
Volvo Cars will merge its engine development and manufacturing assets with those of parent Geely, creating a division to supply in-house brands Lotus, LEVC, Lynk and Proton, and also potential rivals with next-generation combustion and hybrid engines. It marks the latest example of consolidation in the engine manufacturing sector as tighter emissions rules hike development costs at a time when the expansion of electric cars calls into question the long-term demand for gas guzzlers. Rival Volkswagen , which is in the midst of ramping up mass production of electric cars, has already warned its in-house suppliers to create structures to consolidate combustion engine assets.
(Bloomberg) -- Volvo Cars and China’s Geely plan to merge their engine operations into a standalone company, a step the Swedish automaker says will cut costs as it shifts to a fully electrified lineup.The combined unit would supply two million diesel and gasoline-powered engines, compared with the 600,000 Volvo produces today, giving the two companies more scale to reduce material costs. It could also supply other car manufacturers, though none have expressed interest yet, Volvo Chief Executive Officer Hakan Samuelsson said.Global automakers are walking a financial tightrope as they spend billions to develop electric vehicles that IHS Markit forecasts will grow from 2% to 12% of new-car production by 2030. At the same time, slowing sales, trade wars and tightening emissions regulations in China and Europe are pinching profits.Forming a standalone supplier will free up Volvo to focus on electric powertrains and platforms in-house without starving its internal combustion engine business of resources, Samuelsson said.“It’s not like the combustion engine is going to be a growing business,” he said in a phone interview. “The right thing to do is to consolidate and seek synergies. And the earlier you do that, the stronger you will be.”Volvo said no jobs will be eliminated in forming the new supplier, which will employ about 3,000 Volvo workers and 5,000 from Geely, including people in engineering, procurement, manufacturing, information technology and finance.It’s too soon to tell whether the merger would lead to job cuts over time, because it will depend on how quickly the market transitions from combustion engines to fully electric vehicles, said Alan Baum, an independent auto analyst in West Bloomfield, Michigan.“The extent that you move to full battery-electric, you obviously displace those white-collar and blue-collar combustion-engine people,” Baum said, adding that some staff may be able to transfer to new areas within the companies. “If they remain heavily involved in the supply chain, perhaps in a way they weren’t in combustion engines, then they would in fact absorb some of that transition.”‘They Don’t Need Us Anymore’: Auto Workers Fear Electric UnrestSome forecasters see electrification taking off faster than IHS, with BloombergNEF analysts projecting that battery-only and plug-in hybrid vehicles will reach 30% of sales by 2030.Volvo wants half of its global sales fully electric by 2025, and for the remainder to run on engines for gas-electric hybrids supplied by the new unit formed with Geely. The carmaker sold more than 355,000 vehicles globally in the first half of 2019, a 2.5% gain over last year. It will start production next year of the brand’s first fully electric car, a battery-powered version of its XC40 compact crossover.Samuelsson embarked on 2 billion kronor ($200 million) of cost cuts in July after announcing operating profit fell 30% in the first half. Geely’s profit plunged 40% in the first half, dragged down by the first slump in Chinese auto sales in a decade.The CEO hopes to bring the planned merger of engine operations before Volvo’s board for approval next year.“You cannot be world champion on everything,” Samuelsson said. “We don’t want to risk losing out on electrification.”(Updates with analyst comment in 7th paragraph. An earlier version of this story corrected the series labels in the chart.)To contact the reporter on this story: Gabrielle Coppola in New York at email@example.comTo contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, Chester Dawson, David WelchFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Volvo Cars plans to combine its traditional engine business with parent company Geely, the first time carmakers have pooled their internal combustion operations explicitly to free up resources to focus on electric technology instead. Although engine collaboration already exists in the industry, such as BMW and Toyota’s engine-sharing agreement, Volvo and Geely’s move is the first instance carmakers have pooled engine businesses to focus on electric technology instead.
German startup Volocopter said Singapore is emerging as one of the most likely destinations for the commercial launch of its electric helicopters, where it hopes to offer short-hop flights for the price of a limousine ride. The co-founder of the company, which is working with Singapore regulators to conduct a public test flight in coming months, said the city-state, Dubai and Germany were the markets most open to its air taxis. A number of firms are trying to bring so-called air taxis to mass market but a lack of regulation and infrastructure, and safety concerns have proved barriers.
China's top technology hub Hangzhou plans to assign government officials to work with 100 private companies including e-commerce giant Alibaba, according to state media reports, in a move likely to raise concerns over the growing role of the state. The step underscores how Chinese government and party authorities are growing more deeply integrated into the private sector, as its economy sputters amid an intensifying trade war with the United States. The city of Hangzhou, home to Alibaba Group Holding Ltd, will designate government officials to work with 100 local companies in the eastern province of Zhejiang, the local government said on its website.
(Bloomberg) -- The government of one of China’s top technology hubs is dispatching officials to 100 local corporations including e-commerce giant Alibaba Group Holding Ltd., the latest effort to exert greater influence over the country’s massive private sector.Hangzhou, in the eastern province of Zhejiang, is assigning government affairs representatives to facilitate communication and expedite projects, the city government said on its website. Chinese beverage giant Hangzhou Wahaha Group Co. and automaker Zhejiang Geely Holding Group Co. are among the other companies based in the prosperous region that have been singled out, according to reports in state media.The Hangzhou government said the initiative was aimed at smoothing work flow between officials and China’s high-tech companies and manufacturers. But the move could be perceived also as an effort to keep tabs on a non state-owned sector that’s gaining clout as a prime driver of the world’s No. 2 economy. Representatives of the country’s public security system are already embedded within China’s largest internet companies, responsible for crime prevention and stamping out false rumors. Government agencies may also be heightening their monitoring of the vast private sector at a time China’s economy is decelerating -- raising the prospect of destabiliziing job cuts as enterprises try to protect bottom lines. Alibaba is hosting its annual investors’ conference this week in Hangzhou against the backdrop of a worsening outlook for the country.“They might be checking whether the Communist party units are working effectively within the companies,” said Paul Gillis, a professor at Peking University’s Guanghua School of Management. “While China legitimized capitalism, the level of government influence was never intended to disappear. Occasionally private entrepreneurs forget about this and are reminded of it.”Read more: Chinese Technology Moguls’ Latest Obsession: Red TourismZhejiang is considered the cradle of modern Chinese private enterprise, home to a generation of self-made billionaires from Alibaba’s Jack Ma and Geely founder Li Shufu to Wahaha’s Zong Qinghou. The Communist Party accepted so-called “red capitalists” or private entrepreneurs into the Party in 2001, allowing them to become part of the country’s legislature a year later.Still, the relationship between Beijing and well-known business people remains sensitive. The government has been seen to try and step up an official presence within non-state firms, by among other things mandating that private companies of scale set up and maintain a Party branch. It wasn’t clear whether the 100 Zhejiang-based companies included foreign enterprises.“We understand this initiative from the Hangzhou city government aims to foster a better business environment in support of Hangzhou-based enterprises. The government representative will function as a bridge to the private sector, and will not interfere with the company’s operations,” Alibaba said in a text statement. Representatives for Wahaha and Geely didn’t immediately respond to requests for comment.Why Communist China Is Home to So Many Billionaires: QuickTakeThe Hangzhou initiative also underscores how the government is trying to arrest a slowdown in the economy brought on by the trade war, said Brock Silvers, managing director of Kaiyuan Capital. He expects similar policies to soon follow for other manufacturing-intensive areas.“The economic slowdown and trade war are having a significant impact on China’s manufacturing base, and officials probably don’t see a quick resolution on the horizon,” Silvers said. “As the government expects manufacturers to experience near-term difficulties, it wants to exert a firm control over local policy decisions and implementation.”(Updates with analyst’s comment from the eighth paragraph)\--With assistance from Tian Ying and Rachel Chang.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Volocopter, the German air-taxi startup, has raised €50 million in its Series C funding round, with the financing led by Chinese auto major Zhejiang Geely Holding Group Co., the company that owns Volvo, Lotus, and other car manufacturers. "Geely is transitioning from being an automotive manufacturer to a mobility technology group, investing in and developing a wide range of next-generation technologies," said Li Shufu, chairman of Geely, in a statement.
German startup Volocopter said it plans to form a partnership with Zhejiang Geely Holding Group that will bring its air taxis to China and that it has raised 50 million euros ($55.13 million) in fresh funding from the Chinese company and others. Volocopter, which says it is building the world's first manned, electric and vertical takeoff air taxis, said in a statement on Monday that the other investors in the new funding round include German luxury car maker Daimler , which it had previously raised money from. Geely's chairman Li Shufu said in the statement that the investment reflected how the Chinese company is transitioning to become a mobility technology group, investing in and developing a wide range of next-generation technologies.
The promise of flying cars has become an idea more synonymous with the tech world's shortcomings than its exciting potential, but today one of the startups that has been focused on actually trying to make small, airborne vehicles a reality is announcing a fundraise and says it's on track for a commercial launch in two to three years. Volocopter, which has been building drone-like autonomous electric flying taxis for its own (as-yet unlaunched) urban commercial passenger transportation service -- the latest model is its two-passenger VoloCity announced earlier this summer -- has closed €50 million ($55 million) in funding led by Zhejiang Geely Holding Group Co., Ltd, the Chinese automotive company that owns Volvo, Lotus and a number of other car brands. In this latest round, a Series C that brings the total raised to €85 million, Geely is investing alongside Daimler -- the German car giant that owns Mercedes and a number of other brands -- and other unnamed new and existing investors in the Bruchsal, Germany-based company.
FRANKFURT/BEIJING (Reuters) - China's Beijing Automotive Group Co Ltd (BAIC) has bought a 5% stake in Daimler, cementing their long-standing alliance after China's Geely emerged as a potential rival by also taking a stake in the German automaker. BAIC has been Daimler's main partner in China for years, operating Mercedes-Benz factories in Beijing through Beijing Benz Automotive.
Moody's Investors Service has assigned definitive Aa3 (sf) ratings to the Class A1 and A2 Senior Notes and A2 (sf) rating on the Class B Senior Notes issued by Generation 2019-2 Retail Auto Mortgage Loan Securitisation, a domestic transaction backed by a static pool of auto loans originated by Genius Auto Finance Co., Ltd (Genius AFC) in China. Excess spread received (if any) and the liquidity reserve balance in excess of the target amount will also be fully used to repay the rated notes.
China's top search engine operator Baidu Inc has joined hands with Zhejiang Geely Holding Group and Japan's Toyota Motor Corp to cooperate on areas related to artificial intelligence (AI) amid a push for self-driving cars. Under their partnership, Geely [GEELY.UL] and Toyota have joined Apollo, an autonomous driving platform by Baidu. Baidu will provide Apollo Minibus, a software product for autonomous bus vehicles, to Toyota's e-Palette vehicles in the future, and will work with the automaker to explore more uses of autonomous driving technologies, said Li Zhenyu, vice president of Baidu who is in charge of its intelligent driving unit.
China's top search engine operator Baidu Inc has joined hands with Zhejiang Geely Holding Group and Japan's Toyota Motor Corp to cooperate on areas related to artificial intelligence (AI) amid a push for self-driving cars. Under their partnership, Geely and Toyota have joined Apollo, an autonomous driving platform by Baidu. Baidu will provide Apollo Minibus, a software product for autonomous bus vehicles, to Toyota's e-Palette vehicles in the future, and will work with the automaker to explore more uses of autonomous driving technologies, said Li Zhenyu, vice president of Baidu who is in charge of its intelligent driving unit.
China-based Zhejiang Geely Holdings is tapping Zenuity, the joint venture between Volvo and Swedish technology company Veoneer, as its preferred driver assistance and autonomous vehicle software supplier for its range of car brands. The decision means Zenuity's software will likely end up in vehicles under the brands Geely Auto, Geometry, Volvo Cars, performance brand Polestar, British carmaker Lotus and the subscription-based automaker Lynk & Co. Geely Holdings' total group sales last year were 2.15 million vehicles, according to the company.
China's Geely has chosen Zenuity, a joint venture between its Volvo car marque and Swedish technology group Veoneer , as its preferred supplier for assisted and self driving software. Geely's deal, encompassing car brands including Geely Auto , performance brand Polestar, subscription-based electric carmaker Lynk & Co and British sports car maker Lotus, provides a welcome boost for Zenuity. Veoneer said in April it was carrying out a review of Zenuity, which is focused on developing software for assisted driving features (ADAS) such as lane keeping and autonomous driving (AD), and seeking efficiencies from the venture.
China's Geely has chosen Zenuity, a joint venture between its Volvo car marque and Swedish technology group Veoneer, as its preferred supplier for assisted and self driving software. Geely's deal, encompassing car brands including Geely Auto, performance brand Polestar, subscription-based electric carmaker Lynk & Co and British sports car maker Lotus, provides a welcome boost for Zenuity. Veoneer said in April it was carrying out a review of Zenuity, which is focused on developing software for assisted driving features (ADAS) such as lane keeping and autonomous driving (AD), and seeking efficiencies from the venture.