Auto stocks gained by the Fiat-Renault news (updated)

The auto stocks gained on Monday trading in Europe after the confirmation of the Italian-French car manufacturing merger proposal. Fiat Chrysler (FCA) and Renault (RNO) said that they are planning a 35 billion euros merger, which would make the new company the world’s third largest auto manufacturer. The planning of the merger was published on Saturday evening.

Fiat´s stock price jumped by 7,98 % to 12,37 euros and Renault´s 12,09 % to 56,03 euros. The Stoxx Europe 600 Automobiles & Parts index ended up 1,43 % to 473 points.

The idea of the auto merger is to get synergies, estimated of 5 billion euros, in the R&D related to electric cars and lower emissions, and in the purhasing power. The new company, owned by 50-50 % by a Dutch holding company, would have production of 8,7 million cars annually. Brands like Jeep, Maserati and Alfa Romeo would be part of the merger.

The Japan alliance partner Nissan Motor & Mitsubishi might join the new group later on. In order to proceed the Italian and French Governments will comment the merger in details during the next week.

Otherwise the German DAX-index gained 0,5 % to 12071 points and the French CAC 40 0,37 % to 5336 points. The shares of Volkswagen, the world´s largest car manufacturer, (VOW) ended up 0,55 % to 145,25 euros in Frankfurt.

In London the trading was closed due to the Spring Bank Holiday.

In the US, the stocks markets were closed while having Memorial Day holiday.

Business Finance Tech

Volkswagen Passat Hybrid – economical driving

Volkswagen Passat GTE Hybrid offers good performance.  The electric range of about 50 km and the range of 1000 km with petrol shows how family travelling with electric car is possible, even with long distances.

The car is also embedded with different solutions that help the driver to focus on road safety issues. So called Front Assistant is a system which alarms you if there is an pedestrian on the road and brakes automatically if needed. The Park Assistant helps you with parking in the city environments.

The infortainment system in the car is very clear and all the possible connectivity functions as well. On the other hand, the voice navigation could have different voice options, but the navigation itself and its operations are easy to use.

One of the useful functions is also the e-Manager, which enables you to set charging  beforehand. For example you can leave the car ready to be charged, but the e-Manager takes control how much earlier  the car has to be charged in order to get it ready in time. During the winter mornings this would enable smooth travelling with enough power and range.

It is also possible to integrate the infortainment system with Apple CarPlay and Android Auto applications, but this has to be done with USB cabels. For example with BMW this integration is wireless.

The combined consumption in Volkswagen Passat Hybrid is about 1,7 litres per 100 km according to the company information. And the CO2 is 38 g per kilometer. The charging time range is from 3-4 hours with the litium-ioni batteries. The car uses electric about 13,4 kwh per each 100 kilometer.

In short, one can say that driving with Volkswagen Passat GTE plug-in-hybrid is  economical. It offers also enough space for goods and even small cargo. It is a combination of classic style with modern technology.

 

 

 

 

Travel

Speedy Golf GTE hybrid

 

Sometimes you get really impressed with the speed by the small-size cars. Like the new Golf GTE hybrid. By the look you could never quess that the car is having combined 150 kW, which allows you to speed from 1 to 100 km/h in 7,6 seconds. Amazing combination of electric and gasoline engines.

The combination works very well also for short distance travelling  with 50 kilometers range of electric power. According to the company information the combined CO2 emissions are 36-40 g/km. The energy from using brakes is also storaged and reused during the drive.

This plug-in-hybrid is having 5 seats and guite large luckage space. The fuel tank capacity is 50 liters. In the infosystem you can easily connect with your mobile phone via Car-Net App and it includes for example an European wide map service, navigation and it allows you to use your own applications as well.

It is also good to check what is the quarantee of the batteries in your car. Volkswagen is saying that it gives 8 years quarantee for the batteries or 160 000 km.

Golf GTE is really a Volkswagen (VOW), enabling safety and quality in a package, which includes technology into details.

Lifestyle

Porsche Design: Developing a car-integrated luxury watch for 2020?

 

The German Porsche Design, a company in the Volkswagen Group ((VOW:GR) is on the road to develop something new,  a car-integrated luxury watch? According to people familiar with the matter, this integrated watch would be part of the company´s innovative thinking and design.

The technology transfer will take its time and this would mean that the company might be launching this connected watch at the same time as the parent company Porsche, is starting the deliveries of its first electric cars, Mission Es. This car would be totally electric and new innovation from Porsche.

According to sources, Porsche Design is  not developing a smartwatch, but they are developing a watch that can be integrated to cars., “Porsche Design is transferring car´s technology into watches and that is why they do not speak about smartwatches”, the sources said to pubplus.club.

Porsche company has been developing its Digital Lab with thousands new employees during the last years and the company says that they will invest in the digital transformation with double-digit sums of their annual revenues. Last year Porsche´s turnover was 22,3 billion euros and the result before taxes 3,7 billion euros.

For example Apple (AAPL:US) is developing its own electric car with different functions that can be integrated. The main idea with Apple is that they would like to have a car, which could be operated with Apple phone. The functionality and usability of the iPhone for driving would be integration of future-looking car technology and autonomous cars.

Porsche Design is not doing the same, but vice versa while they want a smartwatch or connected watch with a car integration.  They know that Porsche drivers like to drive the car and feel the movement but on the other hand in long distance driving some autonomous functions might be good.

The parent company, Porsche, based in Germany, near Stuttgart, has over 8000 R&D employees. According to the company strategy “The sportscar of the future will blend the history and values of the Porsche brand with innovative technologies, while at the same time ensuring sustainability. In achieving this, topics such as electromobility, digitalisation and connectivity will play an important role.”

Porsche Design launched its new Monobloc Actuator watch during the BaselWorld. In this model, titanium, which has been used in engine construction for over 50 years, is given an entirely new form. This chronograph has a single rocker switch enabling longer durability and lifetime. They are in shops from May 2017 and prices start at 6000 euros.

Porsche Design was founded in 1972 with the design innovations and inspirations from motorsports. The brand philosophy is characterised by combining design expertise and engineering excellence.

 

Päivi Härkönen

 

Porsche Design MONOBLOC ACTUATOR TitaniumBlue_3DSoldatPorsche Design Timepieces:

1972 – the first entirely matte black wristwatch

1978 – the first watch with an integrated compass

1980 – the first chronograph made entirely from titanium  

2004 – the first watch with mechanical-digital display

2017 – the next innovative watch concept

Business Tech

The future of auto at CES2016

PrintWhen I wrote about the same topic last year, I did not quess that so much would be happening in the auto industry. During the year for example the emission scandal in Volkswagen has been in the headlines, but also the self-driving and electric vehicles have been the main topics.

Maybe one of the reasons for this is, that automobiles are becoming more like mobile devices,

as Volkswagen´s (VW) keynote speaker Dr. Herbert Diess, member of the Board of Management of Volkswagen AG,  very good put it in his presentation in Las Vegas today.

The word largest consumer electronics fairs CES will gather around 150.000- 170.000 attendees during the show in Las Vegas this week. Also this has changed to be one of the main events for automakers as digital services and internet of things will change the driving totally.  There are more than 115 automotive tech companies in the exhibition, up 25 percent from a year earlier.

According to Consumer Technology Association internet of things will drive consumer tech industry to 287 billion dollars in revenues in the US.

One of the interesting things in the Volkswagen presentation was the future of automated driving. They have reinvented the Budd-e, now electric car, with direct connections to your home, kitchen devices and for example the doorbell. The company is also embedding environmental technology inside the car. Volkswagen´s partner in the home devices is LG. This long-distance, future zero-emission car will be ready for consumers at the end of decade.

– The world premiere of the BUDD-e shows the next step towards the mobility of the future. Its newly developed electric drive enables a driving range of up to 533 kilometers (NEDC) / 233 Miles (EPA estimated real-world driving range). One of its highlights is the charging cycle. It is possible to charge the battery to 80 percent of its capacity within just around 30 minutes, the company said in the press release.

During his presentation Dr. Diess told the audience several times, that the company is truly sorry and apologize the scandal. – We are working night and day in order to fix the 11 million cars, of which 8,5 in Europe, he continued.

The company also launched a new electric Golf-car, with more intelligence and voice commands inside the car. The selling will start later this year and one feature is that there is no buttons in the panel.

The company share price has fallen by 42,11 percent from June 2015 due to the emission scandal in the US and Europe.

Business Tech

Nokia: Alcatel-Lucent merger is now closer – operating profit little down

Nokia (NOKIA), today published its third quarter interim report. According to the press release, the company says the merge with the French Alcatel-Lucent is now closer and they have received all the regulatory approvals to proceed with the public exchange offer. It is estimated to happen during the first quarter next year.

Nokia reported a turnover with 3036 million euros in July-September, declining 2 percent from the year earlier and increasing from the previous quarter. The operating profit was 475 million euros, up 4 percent from year earlier , but down 4 percent from the previous quarter. Earnings per share was 0,05 euros compared to 0,57 euros.

– I continue to believe that the acquisition of Alcatel-Lucent provides a very strong long-term value creation opportunity, the CEO Rajeev Suri said in the release.

The company also said it will raise the near term outlook. – The performance at Nokia Networks was the highlight of the quarter, and allowed us to raise our full-year outlook for that business, Suri said.

Nokia sold its HERE maps and location unit to German automakers Audi, BMW and Daimler in August 2015. According to Volkswagen (VOW:Xetra) press release yesterday, the company is expecting to close the deal during the next six months after the regulatory approvals. Audi´s share of the purchase price will be around 0,85 billion euros, according the release.

According to Nokia release today, HERE net sales amounted to 283 million euros in the third quarter 2015, compared to 236 million euros a year earlier. The operating profit was 20 million euros in the third quarter 2015, compared to an operating loss of 1 215 million euros in the third quarter 2014. On a non-IFRS basis and excluding the positive impact of stopping amortization and depreciation, HERE operating margin in the first nine months of 2015 was 10.1%, compared to 1.6% in the first nine months of 2014.

Nokia published also 7 billion euros program to optimize capital structure ahead of planned public exchange offer for Alcatel-Lucent securities. It also said that the 900 million euros synergies from the Alcatel-Lucent merge would be achieved in 2018, not in 2019 as earlier planned.

Business Tech

Ferrari to be listed in the New York Stock Exchange

The Italian luxury car manufacturer Ferrari is going to make its IPO in the New York Stock Exchange. According to Reuters, the sale will consist of 17,2 million shares (9 %) of the Dutch holding company Ferrari NV. The share price is exptected to be at 48-52 dollars. The ticker for the company will be RACE.

Investors are expected to be highly interested of this IPO and the lead coordinator is UBS altough the car industry has faced the recent Volkswagen´s emission testing scandal. The valuation of the company could rise to 9,8 billion dollars and the enterprise value would be around 12 billion dollars.

The parent company Fiat Chrysler Automobiles is exptexcted to cut the debt and to help finance a 48 billion euros investment programm of Jeep, Alfa Romeo and Maserati.

Ferrari´s chairman Piero Ferrari is said to keep a 10 percent stake in the company. He has said that Ferrari is not a traditional car manufacturer and its peer group should rather be Hermes and Prada than for example Porsche. – We don´t sell a car, we sell a dream, he said in an interview in Bloomberg.

Ferrari´s revenue last year was 2,8 billion euros and the company sold 7255 cars. The waiting list for a Ferrari is exptected to be one year. The company earnings before interests and taxes were 389 million euros.

Business Finance