Tag Archives: Volvo

CONSUMER: Midea Cements Kuka Ties, Bumpy Road Ahead

Bottom line: A new marriage between Midea and Kuka may get off to a rocky start due to cultural differences, but could ultimately do well and see the formation of a joint venture to sell industrial robots in China. 

Midea and Kuka tie the knot

After a tense 2 months, a controversial tie-up between Chinese home appliance maker Midea (Shenzhen: 000333) and German robotics firm Kuka (Frankfurt: KU2) has just taken a major step forward, with the former sharply boosting its stake in the latter. Midea took the $1.3 billion step after providing numerous assurances to Berlin, including guarantees that it didn’t plan to relocate German jobs to China or take over Kuka’s management.

The step forward looks like a big victory for free trade, as it shows that governments like Germany won’t meddle in market-driven M&A and other cross-border tie-ups even when they involve cutting-edge technology. But this new cross-border marriage is just beginning, and I suspect there will be many bumps in the road ahead as this pair from very different cultural backgrounds gets to know each other. Read Full Post…

News Digest: June 18, 2014

The following press releases and media reports about Chinese companies were carried on June 18. To view a full article or story, click on the link next to the headline.
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  • Search Engines Halt P2P Platform Promotion (Chinese article)
  • Volvo’s China Export Plans Mark New Phase In Geely (HKEx: 175) Strategy (English article)
  • Yingli Green Energy (NYSE: YGE) Reports Q1 Results (PRNewswire)
  • LightInTheBox (NYSE: LITB) Announces Resignations Of President, Senior VP (PRNewswire)
  • Citic Adds Investors Including Tencent (HKEx: 700), Och-Ziff to Share Sale (English article)

Dongfeng, Geely Zoom In Smart New JVs

Renault enters China with Dongfeng JV

There’s upbeat news come from 2 of China’s top domestic automakers, led by word that Dongfeng Motor (HKEx: 489) has finally signed a joint venture deal to make sport utility vehicles (SUVs) with France’s Renault (Paris: RENA) after more than a year of negotiations. Meantime, Geely Auto (HKEx: 175), which is trying hard to turn around struggling Swedish automaker Volvo, has announced its own major new auto financing joint venture with France’s BNP (Paris: BNP). This sudden love fest between Chinese automakers and French companies is probably just coincidence, since the 2 deals look unrelated. But both look like smart moves, as they involve Chinese firms pairing up with relatively strong, experienced foreign partners. That contrasts sharply with the more common Chinese preference in the past for sickly, struggling companies, especially when Chinese firms buy equity stakes in their venture partners. Read Full Post…

Advice To Dongfeng: Drive Away From Peugeot

Dongfeng nears Peugeot tie-up

Chinese firms’ addiction to distressed global assets was back in the spotlight last week with word that car maker Dongfeng Motor (HKEx: 489) is nearing a deal to purchase struggling French automaker Peugeot (Paris: PEUP). This pursuit of a global brand is consistent with Beijing’s call for Chinese firms to go global, and would certainly allow Dongfeng to quickly expand onto the world stage. Read Full Post…

Cars: BAIC IPO, Geely Goes Electric 北汽将上市 吉利进军电动车

News bits from the automobile space indicate the long-awaited IPO by Beijing-based car maker BAIC Motor may finally be coming soon, while the struggling Geely (HKEx: 175) is chasing a couple of distracting new initiatives in the electric vehicle and overseas markets. Let’s start with the BAIC news, as that looks the most interesting since it could provide investors with an interesting IPO opportunity later this year.

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Cars: Donfeng-Volvo, VW Chases Low End 东风与沃尔沃联姻 大众进军中国低端汽车市场

A couple of news bits from the auto space are underscoring how competitive the sector has become, with domestic carmaker Dongfeng Motor signing a new tie-up with Swedish truck maker Volvo, as Germany’s Volkswagen (Frankfurt: VOWG) moves closer to entering the low-end market traditionally shunned by foreign names. Both of these cases show that big-name automakers, both domestic and foreign, will have to look for creative new ways to keep their business growing in the hyper-competitive Chinese market, and that the days where companies could simply construct a new multibillion-dollar factory to fuel additional growth may be in the past.

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News Digest: January 26-28 报摘:2013年1月22-28日

The following press releases and media reports about Chinese companies were carried on January 26-28. To view a full article or story, click on the link next to the headline.
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  • Lenovo (HKEx: 992) Considers Research In Motion (Toronto: RIM) Acquisition – CFO (English article)
  • Volkswagen (Frankfurt: VOWG) Says May Enter Low-Cost Market With China-Built Car (English article)
  • China Mobile (HKEx: 941) Starts Macro Investment Analysis of 5 Countries (English article)
  • Truck Maker Volvo To Take Minority Stake in Dongfeng Motor (HKEx: 489) (English article)
  • Gome (HKEx: 493) Confirms To Cut 200 Workers From Online Division (Chinese article)

News Digest: December 11 报摘: 2012年12月11日

The following press releases and media reports about Chinese companies were carried on December 11. To view a full article or story, click on the link next to the headline.
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  • Xinhua Opens Twitter Account, Already Has 5,000 Followers (Chinese article)
  • China Mobile (HKEx: 941) to Dive into E-Commerce – Source (English article)
  • Suntech (NYSE: STP), Siemens Team on 100MW of Solar Projects in South Africa (PRNewswire)
  • E-House (NYSE: EJ) to Issue New Shares to Management, Repurchase Shares (PRNewswire)

Geely’s UK Investment Fails, Volvo Next? 吉利持股的英国锰铜申请破产保护 沃尔沃或遭遇相同命运

A week after I commended home appliance maker Haier (HKEx: 1169) for a job well done with its recent purchase of a New Zealand company, I’m sorry to say I can’t give the same positive assessment for more problematic overseas investments by the parent of Hong Kong-listed Geely (HKEx: 175). The latest news has seen one of Geely’s biggest overseas investments, UK taxi maker Manganese Bronze, file for bankruptcy, even as Geely’s bigger Volvo car unit appears to be heading down a similar road.

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Cars: Volvo Sputters, GM Sails 中国汽车市场:沃尔沃遇阻 通用启航

The latest auto news bits show that domestic nameplate Geely (HKEx: 175) continues to struggle with its plans to resuscitate its Volvo brand, while General Motors (NYSE: GM) is banking on rapid growth for low-end cars to consolidate its position as China’s market leader. Meantime, I’d be remiss not to mention the latest news coming from sputtering domestic automaker Chery, which has  disclosed its controversial plan for a joint venture with luxury car maker Jaguar Land Rover has just been approved by the key state regulator.

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News Digest: September 22-24, 2012 报摘: 2012年9月22-24日

The following press releases and media reports about Chinese companies were carried on September 22-24. To view a full article or story, click on the link next to the headline.
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  • Microsoft Asks PetroChina (HKEx: 857), Others to Stop Using Pirated Office – Sources (Chinese article)
  • Qunar Monthly Air Ticketing Revenue Surpasses Ctrip (Nasdaq: CTRP) (English article)
  • Suntech (NYSE: STP) Receives Continued Listing Standards Notice from NYSE (PRNewswire)
  • Panasonic (Tokyo: 6752) Details Damage to China Manufacturing Sites (Businesswire)