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Tesla loan payoff opens up takeover scenario, is Google interested? [w/video]

Filed under: EV/Plug-in, Tesla Motors

‘Tesla needs to prove success is sustainable and that it is based on a solid financial foundation. If they do, they should be an appealing takeover target.’

Buried in the loan agreement text between Tesla Motors and the US Department of Energy were restrictions on the automaker’s ability to offer itself for sale. Now that the loan has been paid back early, speculation is ramping up that the company will get snagged by a bigger fish through a sale or a takeover. Bloomberg, in fact, is wondering aloud if Google will take the bait.

Now, before anyone gets all excited that the giant touchscreen in the Model S will get a clever logo redesign every holiday, we’ve heard unlikely rumors about other companies buying Tesla before (for example, Google’s competition, Apple) and Tesla CEO Elon Musk has said repeatedly that he isn’t going to step down any time soon. In fact, he told Bloomberg last month, “I’ve said from the very beginning, from the creation of Tesla, that our goal is to create a compelling mass-market car. I would not consider stepping away from Tesla until we’re there. We’re several years away obviously.”

Right now might be a bad time to buy the company anyway, given TSLA stock’s high value (over $100 today). In fact, Bloomberg has calculated that Tesla is trading for 816 times(!) its estimated 2013 earnings. If things continue to go well, money-laden companies like Google or another automaker might be interested in the EV builder. The former deputy CEO of Chrysler and onetime Toyota dealer body guru, Jim Press, told Bloomberg that, “Tesla has developed an appealing and credible product with game-changing technology. They need to prove their success is sustainable for the long term and that it is based on a solid financial foundation. If they do, they should be an appealing takeover target.”

Currently, Musk controls about 24-percent of Tesla shares. There are more details in the Bloomberg article here and there’s a video bit of speculation below.

Continue reading Tesla loan payoff opens up takeover scenario, is Google interested? [w/video]

Tesla loan payoff opens up takeover scenario, is Google interested? [w/video] originally appeared on Autoblog Green on Mon, 24 Jun 2013 18:29:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #228: Lamborghini Aventador, Lincoln performance, Chrysler profit and loan payback

Filed under: Podcasts, Acura, Chevrolet, Chrysler, Ford, Lincoln, Earnings/Financials

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Podcast Team number one – Chris Shunk, Dan Roth and Zach Bowman – kick it for Autoblog Podcast #228. The crew mulls our First Drive of the Lamborghini Aventador, a Lincoln performance sect, Chrysler’s profit and loan payback and the Forbes worst car list. Your feedback and questions finish it off, and we’ve re-posted the Q&A at the bottom of this post so you can play along at home, too. Thanks for listening, we’ll see you next week!

Autoblog Podcast #228: Lamborghini Aventador, Lincoln performance, Chrysler profit and loan payback

2012 Lamborghini Aventador First Drive
Lincoln performance divison rumors
Chrysler profit and accelerated loan payback
Forbes’ Worst cars on the Road List

In the Autoblog Garage:

2011 Chevrolet Camaro Convertible V6
2011 Ford Fiesta SE Hatchback
2011 Acura TSX Sport Wagon

Hosts: Dan Roth, Chris Shunk, Zach Bowman
Runtime: 01:26:24

Get the podcast:
[iTunes] Subscribe to the Autoblog Podcast in iTunes
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[MP3] Download the MP3 directly

Feedback:
Email: Podcast at Autoblog dot com
Voicemail: 734-288-8POD (734-288-8763)

Review the show in iTunes and take our survey

Autoblog Podcast #228: Lamborghini Aventador, Lincoln performance, Chrysler profit and loan payback originally appeared on Autoblog on Tue, 03 May 2011 17:44:00 EST. Please see our terms for use of feeds.

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Saab to resume production after securing short-term loan

Filed under: Plants/Manufacturing, Saab, Earnings/Financials

Saab factory

Production at Saab’s Trollhättan, Sweden plant has been shut down for weeks due, as these things often are, to a lack of cash needed to pay suppliers. That should change in the next week, though, as Saab parent Spyker has announced that it has secured a convertible loan agreement with Gemini Investment Fund Limited worth 30 million euros.

The Swedish automaker says the loan will help reboot the plant, but Saab is also counting on a 29.1-million-euro draw-down from the request to the European Investment Bank, which will reportedly arrive next week. With both loans, Saab says in the post-jump press release that it will be able to resume production at Trollhättan, pending a delivery schedule agreement with suppliers.

The loan, which matures in six months and carries a seven-percent interest rate, will act only as a stopgap measure to enable a production restart. Saab is reportedly also trying to strike a deal with a Chinese automaker to help stabilize its operations and provide much-needed funding. Saab is said to be continuing to work out a deal with Russian businessman Vladimir Antonov, who hopes to own 30 percent of the automaker. Hit the jump to read over the press release.

Continue reading Saab to resume production after securing short-term loan

Saab to resume production after securing short-term loan originally appeared on Autoblog on Mon, 02 May 2011 14:00:00 EST. Please see our terms for use of feeds.

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Report: Swedish gov’t. working on freeing up Saab loan

Filed under: Government/Legal, Plants/Manufacturing, Saab, Earnings/Financials

Saab sign at auto show in a blur

The last few weeks haven’t been easy for Saab, as the Swedish automaker has had to stop production twice due to supplier issues. Not just any problems, either, as the suppliers wanted to get paid, and Saab simply didn’t have the cash. That led to widespread speculation that the automaker was destined to shutter only a year after Spyker purchased the company from General Motors.

Now Bloomberg is reporting that the Swedish government is looking into getting a bank loan to float the company for the short-term. The loan will most likely come from Bankas Snoras in Lithuania, which is run by Russian investor Vladimir Antonov, who has attempted to buy into the brand since GM originally put it up for sale.

The Swedish government is fighting for more than just a few thousand, albeit important jobs as well. Sweden backed Saab’s 400 million-euro ($577 million) loan from the European Investment Bank, likely leaving the Swedish taxpayers on the hook for a hefty bill if the automaker goes south.

Bloomberg sources say lawyers are working on a deal that would float the automaker $48 million while the government approves the involvement of Antonov. Once approved, the Russian investor would then add 50 million Euro ($72 million in U.S. funds) to Saab’s coffers in exchange for a 30 percent stake in the company.

We’re thinking this deal will get done and Saab will be able to pay its suppliers. But whether the Swedish government and Antonov are throwing good money after bad is another matter. We’ll continue to follow this situation as it unfolds.

[Source: Bloomberg | Image: Fabrice Coffrini/AFP/Getty]

Report: Swedish gov’t. working on freeing up Saab loan originally appeared on Autoblog on Mon, 11 Apr 2011 13:01:00 EST. Please see our terms for use of feeds.

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Ford’s Big Goal in 2011: Get out of junk status, lower loan rates

Filed under: Ford, Earnings/Financials

2010 was a banner year for Ford Motor Company. Market share and profits were as good as they’ve been in years, and there is genuine buzz surrounding the Blue Oval’s cars and trucks. Heck, even Ford’s stock has been a monumental success. But not all that glitters is gold, as Ford is still mired in junk bond status, which in turn makes it more expensive to borrow money. That makes it more pricey for Ford to offer incentives to customers, and lease terms are less attractive than they would otherwise be.

K.R. Kent, Ford’s new executive director of investor relations, is charged with getting Ford out of Junk status. Automotive News reports that Ford has been in junk status since 2005 and is currently four grades below junk status after being upgraded by two levels back in August. Ford CFO Lewis Booth admits that the company still has “a lot of steps to go before we get to investment grade.” Making the matter more urgent for Ford is the fact that Ally Financial, the finance arm for General Motors and Chrysler, became a bank holding company in the second quarter of 2009. Since that time, AN says that it has been cheaper for Ally to secure loans than Ford Credit.

We’re thinking that Ford has a big job in the year ahead, and getting out of junk status will likely take improved auto sales and continued quarterly profits. Booth says Ford will reach its junk-free goal by showing the investment community “authoritative and highly credible insight into our automotive business and Ford Credit.”

[Source: Automotive News – sub. req.]

Ford’s Big Goal in 2011: Get out of junk status, lower loan rates originally appeared on Autoblog on Fri, 31 Dec 2010 10:01:00 EST. Please see our terms for use of feeds.

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Nissan to offer free conventional car loan to Leaf buyers to ease range anxiety?

Filed under: Car Buying, Marketing/Advertising, Hatchback, Nissan, Rumormill, Electric

2011 Nissan Leaf

2011 Nissan Leaf – Click above for high-res image gallery

The December 2010 launch of the 2011 Nissan Leaf gets closer every day and thousands of people have already signed up to reserve their spot for one. Still, some would-be buyers may suffer from a touch of “range anxiety” – that is, a nervous apprehension about running out of juice, only to be stranded somewhere. To quell that fear, TheDetroitBureau.com reports that Nissan is pondering an option for owners who need to undertake a journey longer than the 100-mile range the all-electric Leaf is rated for. A no-cost loan of a conventional, gasoline-powered vehicle could be made available to owners for periods of up to a week.

The loaner car option is still in the early planning stages, and it’s not yet clear exactly how it would work. Would the Leaf owner be required to arrange the loan through a rental agency, or could it be handled through a local dealership? Nissan still has a lot of details to iron out, but if the plan gets approved, it could prove to be a strong marketing tool.

Gallery: 2011 Nissan Leaf: First Drive

Photos by Damon Lavrinc / Copyright (C)2010 Weblogs, Inc.

[Source: TheDetroitBureau.com]

Nissan to offer free conventional car loan to Leaf buyers to ease range anxiety? originally appeared on Autoblog on Fri, 08 Oct 2010 11:29:00 EST. Please see our terms for use of feeds.

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Geely-owned Volvo seeks €600 million EIB loan

Filed under: Europe, Government/Legal, Volvo, Earnings/Financials, Geely

2011 Volvo S60

2011 Volvo S60 – Click above for high-res image gallery

Volvo received a €200 million loan from the European Investment Bank in March of this year, and sought another €300 million to cement its finances as it navigated the process of being sold by Ford. The rest of the funds were put on hold as Ford concluded the deal with China’s Geely, but now that the sale is complete Volvo is ready to take delivery of the additional sum.

Geely-owned Volvo has revised its product timeline compared to when when it first applied for EIB assistance, however. As a result, it now seeks €600 million. At the moment, the process is on hold while Geely discusses loan guarantees with the Swedish government, but perhaps that extra dosh – assuming it’s approved – will help pay for Volvo’s 7 Series and S-Class competitor.

Gallery: 2011 Volvo S60

[Source: Reuters]

Geely-owned Volvo seeks €600 million EIB loan originally appeared on Autoblog on Sat, 11 Sep 2010 14:12:00 EST. Please see our terms for use of feeds.

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Who pays the highest auto loan interest rates in the country?

Filed under: Car Buying, Etc., Earnings/Financials

Map

It’s that time of the year again, kids. Manufacturers are busy trying to put people in cars in order to move leftover stock and make room for incoming models, and many are doing so with ridiculously low financing rates. But who’s the fairest of them all? As it turns out, that depends entirely on where you live. The crew over at Kicking Tires has compiled average loan interest rates from across the country and organized the data into the incredibly handy map you see above.

As it turns out, car buyers in places like Los Angeles and Las Vegas are getting the short end of the financial stick when it comes to their loans, with buyers dealing with 9.55 percent and 9.58 percent APR, respectively. Meanwhile, those in places like Oklahoma City are shouldering a much more reasonable 3.65 percent APR.

The Kicking Tires study is based on a $22,000 loan for 60 months, with 10 percent down. It also assumes a borrower with a credit score of 700 or better.

[Source: Kicking Tires]

Who pays the highest auto loan interest rates in the country? originally appeared on Autoblog on Fri, 03 Sep 2010 09:58:00 EST. Please see our terms for use of feeds.

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