(Bloomberg)
— It’s all-electric like a Tesla. It’s priced like a Ford Fiesta. It’s
one of the oddest-looking vehicles you’ve ever seen — and it may just
redefine the commuter car.
As
General Motors Co. prepares to shut the plant near Toronto that got
car-making started in Canada more than a century ago, a new model is
taking shape in a tiny production facility in Vancouver’s outskirts.
Meet the Solo — a one-seater vehicle made by Electra Meccanica Vehicles Corp. that costs $15,500. By December, 5,000 will be zipping around the streets of Los Angeles, with an additional 70,000 to be delivered over the next two years across the West Coast. Electra Meccanica may have a market value of just $80 million, yet it has $2.4 billion in pre-orders. The stock almost doubled in New York Wednesday.
(Reuters) – Tesla Inc has agreed to buy energy storage company Maxwell Technologies Inc for $218 million in an all-stock deal that could help the electric car maker produce batteries that hold more energy and last longer at a time when it needs to cut costs and faces growing competition.
Tesla is rapidly increasing production of its Model 3 sedan and needs to lower the price to reach a broader customer base than its pure luxury vehicles.
Maxwell executives told investors in January that it had developed and patented a “dry electrode” technology that could significantly increase the driving range and reduce the cost of electric vehicle batteries. In a presentation, Maxwell said it expected strategic alliances “within six months” centered around this technology.
The company also makes ultracapacitors, which discharge energy faster than batteries and are seen as complementing battery technology.
Ultracapacitors, combined with the energy of batteries, can enable rapid response times, function across a broader temperature range and lengthen battery life by up to two times, according to a blog post on Maxwell’s website.
Volvo-owner Geely Holding Group last May announced a deal with Maxwell and described the company’s ultracapacitor technology as helping to deliver “peak power” for hybrid cars.
“Tesla needs Maxwell’s solvent-free battery electrode manufacturing for a viable path to lower battery costs,” said Craig Irwin of Roth Capital Partners. “Real competitors are coming now, so Tesla needs to move fast.”
Maxwell’s customers also include General Motors and Lamborghini.
The offer values each Maxwell share at $4.75, representing a 55 percent premium to the stock’s closing price on Friday, the companies said. Maxwell shares rose to trade at $4.58.
Currently, Japan’s Panasonic Corp is the exclusive battery cell supplier for Tesla cars.
Tesla chief Elon Musk had highlighted the importance of ultracapacitors back in 2013.
Tesla also sells power storage, often in conjunction with its solar power business, and ultracapacitors could be used in backup systems for homes and for utility power grids.
Maxwell expects the deal, which has already been approved by its board, to close in the second quarter of 2019, or shortly thereafter.
DLA Piper was Maxwell’s outside legal counsel, while Barclays Capital was the independent adviser. Wilson Sonsini Goodrich & Rosati represented Tesla as outside legal counsel.
(Reporting by Supantha Mukherjee, Peter Henderson and Akanksha Rana in Bengaluru and by Joe White and Paul Lienert in Detroit; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty)
PARIS/DUBAI (Reuters) – Dubai’s Emirates is exploring switching some orders for the world’s largest jetliner, the Airbus A380, to the smaller A350 in a move raising new doubts about the future of Europe’s superjumbo, people familiar with the matter said.
The Gulf carrier, which has invested tens of billions of dollars in more than 100 A380s, has been struggling to finalise a deal to buy another 36 to keep assembly lines open, due to differences with engine maker Rolls-Royce.
Now, Airbus is looking closely at closing A380 factories sooner than expected as part of a reshuffle of orders, with Chief Executive Tom Enders unlikely to leave the situation unresolved when his mandate ends in April, they said.
A person familiar with the matter said Airbus was looking “extremely seriously” at setting the timetable for a shutdown but said no decision had been taken.
Airbus said in a statement after Reuters first published news of the talks that it “confirms it is in discussions with Emirates airline in relation to its A380 contract”. But it said details of negotiations were confidential.
Emirates and Rolls-Royce declined to comment.
Emirates announced the deal for up to 36 aircraft worth as much as $16 billion (£12 billion) at list prices a year ago, throwing a lifeline to the programme’s roughly 3,000 workers and securing its future for at least another decade.
The airline is an ardent supporter of the jet, which was designed with luxury features like bars and showers.
But sales of four-engined planes are tumbling as many airlines switch to smaller twin-engined jets like the A350 and Boeing 777 due to improvements in range and efficiency.
A year-long impasse between Emirates and Rolls-Royce over shortfalls in fuel savings has so far blocked the order.
Airbus is trying to broker a complex workaround which could see Emirates take smaller jets also powered by Rolls-Royce while it tries to secure homes for as many A380s as possible, with British Airways recently expressing interest.
Airbus has dangled the prospect of closing A380 production before, and industry sources say such manoeuvres can be a negotiating tactic to force the feuding parties to agree.
But time is running out for the A380 with few airlines willing to spend the sums invested by Emirates, which has made it a backbone of its global network alongside the Boeing 777.
The production line is “untenable”, a senior industry source said
A decision by Emirates to order the A350 would offer a respite for Airbus and its main engine partner Rolls-Royce after the Gulf carrier axed an order for the A380 in 2014.
Airbus and Rolls are keen to maintain a foothold with the Gulf carrier and prevent Boeing filling the gap with more of its General Electric-powered 777s.
(Reporting by Tim Hepher and Alexander Cornwell; Editing by Michel Rose and Edmund Blair)
(Reuters) – Shares in Tesla Inc fell nearly 4 percent on Thursday as Wall Street analysts following up on its fourth-quarter results questioned underlying demand for its crucial Model 3 sedan and the electric car maker’s ability to make inroads in China.
Tesla reported quarterly profit below analysts’ expectations on Wednesday and surprised investors by announcing that Chief Financial Officer Deepak Ahuja, 56, would leave and handover the reins to 34-year-old Zach Kirkhorn, its vice president of finance.
JPMorgan analysts were among those warning that Ahuja’s leaving deprived the company of long automotive industry experience and relative stability in a company which has seen a steady stream of senior staff come and go since 2016.
Analysts were also concerned by Tesla’s indication that it is only making cars for China and Europe right now, and expects a gap of about 10,000 vehicles between production and deliveries due to vehicles in transit at the end of the first quarter.
“This is a strong indication that demand in the U.S. for both the mid-range and long-range Model 3 versions has largely been exhausted, and the company is still working through the estimated ~6.8k of unsold Model 3 inventory,” Cowen analysts said.
Still, the fall in Tesla shares was less than that suggested by initial pricing after Wednesday’s results and also far smaller than some of the swings in one of the past year’s most volatile Wall Street stocks.
The company, which is striving to stabilise production and deliver consistent profit, ended the quarter with $4.3 billion in cash and said it had “sufficient cash on hand” to pay a $920 million convertible bond maturing in March.
Of the 31 brokerages covering Tesla, 10 have a “buy” or higher rating, 10 “hold” and 11 have a “sell” or lower rating and their median price target is 327.50.
Only four changed their price targets on the stock on Thursday, with two raises and two cuts. Wedbush cut its price target by $50 to $390 (297 pounds).
While Tesla is pumping money into a Shanghai factory, which it hopes to bring on line around the end of this year with a target of producing 500,000 vehicles a year, several analysts questioned whether that investment will pay off.
“Tesla serves the purpose of a ‘stalking horse’ to the fast growing domestic Chinese EV industry, but we believe it has limited to zero terminal value in a region where a number of domestic champions should emerge,” Morgan Stanley analysts said.
(Reporting by Sonam Rai and Jasmine I S in Bengaluru; Editing by Anil D’Silva)
SAO PAULO, Jan 22 (Reuters) – Avianca Brasil, which filed for bankruptcy protection in December, is looking for a cash injection and has hired Brazilian consulting firm Galeazzi & Associados to help in talks with investors and creditors, the airline said.
Galeazzi’s executives are already visiting the carrier’s creditors to discuss options, a source said, asking for anonymity to disclose private talks. Reuters first reported the news of the Galeazzi hire, citing sources.
Avianca shareholders are discussing a potential cash injection with different investors, including hedge fund Elliott Management Corp, two sources said. Any investment now would need to happen within the bankruptcy protection process, likely in the form of debtor-in-possession financing.
Elliott and Galeazzi did not immediately reply to requests for comment.
Any capital injection or loan would need authorization from the bankruptcy judge.
Avianca is battling two of its main aircraft lessors, Aircastle Ltd and General Electric Co’s unit GE Capital Aviation Services, who have tried so far unsuccessfully to ground or repossess 40 percent of its fleet.
Avianca also said in the statement it continues to operate normally.
The escalating legal battle has added to the uncertainty surrounding Avianca Brasil’s ability to maintain its current flight schedule.
(Reporting by Tatiana Bautzer Editing by Susan Thomas and Alistair Bell)
Marignane, 23 January 2019 – Airbus Helicopters delivered 356 rotorcraft and logged gross orders for 413 helicopters (net: 381) in 2018 (up from 350 gross orders in 2017), maintaining its lead in the civil & parapublic market while reinforcing its position in the military market thanks to key successes with international campaigns. The company also booked 148 orders for light twin-engine helicopters of the H135/H145 family and secured 15 orders for the next-generation H160. At the end of last year, the overall backlog increased to 717 helicopters.
“Our commercial performance in 2018 demonstrates the resilience we have developed as a company to help us navigate what remains a challenging environment,” said Bruno Even, Airbus Helicopters CEO. “Even though the civil & parapublic market remains at a low level worldwide, we have managed to maintain our global leadership thanks to our wide and modern portfolio of products and services and our international footprint. Meanwhile, we have increased our market share in the military sector by securing major contracts with leading armed forces worldwide, with best-in-class solutions. These positive trends give us the means to prepare the future and continue our transformation, with innovation at our core and customer loyalty at heart.”
In 2018, Airbus Helicopters delivered the first of 100 H135s for China in Qingdao, where a dedicated final assembly line will serve the growing demand of the Chinese market for civil & parapublic helicopters. Meanwhile, Hong Kong Government Flying Service took delivery of the first H175s in public services configuration.
Last year also proved successful for the Super Puma family which demonstrated its versatility by being selected in key military campaigns, while attracting new civil & parapublic customers with repurposed H225s previously operated on the oil & gas market. Likewise, 2018 proved to be a very positive year for the NH90, which attracted orders for 28 units in Qatar while being selected by Spain in the frame of a follow-on order for 23 units.
Key programme milestones were achieved in 2018, including the power-on and ground testing of the CityAirbus electric vertical take-off and landing (eVTOL) technology demonstrator, ahead of a maiden flight expected early 2019. The first H160 in serial configuration entered flight trials in 2018, while the VSR700 unmanned aerial system demonstrator performed its first unmanned flights at the end of the year.
Footnote: The Full-Year 2018 net orders and backlog represent the contractual view. The Full-Year 2018 backlog value will be measured under IFRS 15 and will reflect the recoverable amount of revenues under these contracts. The FY 2017 backlog will not be restated.
Boeing NeXt program tests prototype to advance safety and technology of urban air mobilityElectric vertical takeoff and landing vehicle has design range of up to 50 miles
MANASSAS, Va., Jan. 23, 2019 /PRNewswire/ –Boeing [NYSE: BA] yesterday successfully completed the first test flight of its autonomous passenger air vehicle (PAV) prototype in Manassas, Virginia. Boeing NeXt, which leads the company’s urban air mobility efforts, utilized Boeing subsidiary Aurora Flight Sciences to design and develop the electric vertical takeoff and landing (eVTOL) aircraft and will continue testing to advance the safety and reliability of on-demand autonomous air transportation.
The PAV prototype completed a controlled takeoff, hover and landing during the flight, which tested the vehicle’s autonomous functions and ground control systems. Future flights will test forward, wing-borne flight, as well as the transition phase between vertical and forward-flight modes. This transition phase is typically the most significant engineering challenge for any high-speed VTOL aircraft.
“In one year, we have progressed from a conceptual design to a flying prototype,” said Boeing Chief Technology Officer Greg Hyslop. “Boeing’s expertise and innovation have been critical in developing aviation as the world’s safest and most efficient form of transportation, and we will continue to lead with a safe, innovative and responsible approach to new mobility solutions.”
Powered by an electric propulsion system, the PAV prototype is designed for fully autonomous flight from takeoff to landing, with a range of up to 50 miles (80.47 kilometers). Measuring 30 feet (9.14 meters) long and 28 feet (8.53 meters) wide, its advanced airframe integrates the propulsion and wing systems to achieve efficient hover and forward flight.
“This is what revolution looks like, and it’s because of autonomy,” said John Langford, president and chief executive officer of Aurora Flight Sciences. “Certifiable autonomy is going to make quiet, clean and safe urban air mobility possible.”
The test flight represents the latest milestone for Boeing NeXt. The division works with regulatory agencies and industry partners to lead the responsible introduction of a new mobility ecosystem and ensure a future where autonomous and piloted air vehicles safely coexist. In addition to the PAV, the Boeing NeXt portfolio includes an unmanned fully electric cargo air vehicle (CAV) designed to transport up to 500 pounds (226.80 kilograms) and other urban, regional and global mobility platforms. The CAV completed its first indoor flight last year and will transition to outdoor flight testing in 2019.
“Boeing was there when the aviation industry was born and in our second century, we will unlock the potential of the urban air mobility market,” said Steve Nordlund, vice president and general manager of Boeing NeXt. “From building air vehicles to airspace integration, we will usher in a future of safe, low-stress mobility in cities and regions around the world.”
Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in more than 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.
(Reuters) – Boeing Co (BA.N) delivered a record 806 aircraft in 2018 as it overcame supplier woes, retaining the title of the world’s biggest planemaker for the seventh straight year.
The company’s shares rose as much as 3.9 percent to $340.90 and were the biggest percentage gainer on the Dow Jones Industrial Average (.DJI).
European rival Airbus SE (AIR.PA), which will report its numbers on Wednesday and lags behind Boeing due to engine delays, said it achieved its 800-jet target pending final audit.
“Overall, Boeing is taking market share from its main competitor Airbus and is well positioned with strong commercial and military demand,” said CFRA Research analyst Jim Corridore, who upgraded the stock to “strong buy” from “buy”.
Investors and analysts closely watch the number of planes Boeing turns over to airlines and leasing firms for hints on the company’s cashflow and revenue.
The latest numbers indicate that fuselage and engine delays at suppliers in 2018 are largely behind Boeing as it gears up to meet surging demand for airplanes in 2019 amid booming air travel.
“In addition to the ongoing demand for the 737 MAX, we saw strong sales for every one of our twin-aisle airplanes,” said Ihssane Mounir, senior vice president of commercial sales and marketing.
To mitigate supply chain snarls, Boeing helped expand production capacity at suppliers who have hired workers, including retirees this year.
In October, its biggest supplier Spirit AeroSystems Holdings Inc (SPR.N) said it was back on track to meet the surging demand for its aircraft parts.
CFM International, co-owned by France’s Safran (SAF.PA) and General Electric Co (GE.N), also affirmed in the same month its commitment to deliver 1,100 to 1,200 units despite being roughly four weeks behind schedule.
ORDER BOOM
Boeing also looked set to beat Airbus for aircraft orders on a like-for-like basis in 2018 after booking 893 net orders, excluding cancellations in the year.
Meanwhile, Airbus ended November with 380 net orders, to which it has since added confirmed deals for another 220 aircraft.
According to industry sources, it won another 150 from Asian-backed leasing companies that are yet to be announced, with Boeing also getting a lift from Chinese demand.
The Airbus tally, however, included 120 of the former Bombardier CSeries, a Canadian plane programme which it bought last year.
Orders for Boeing and Airbus are seen down compared to 2017 as airlines fret over trade tensions and the slowing global economic growth. But deliveries at both rose on the back of an earlier order boom.
“69 December 737 deliveries suggest (supplier) bottlenecks easing. Solid December book-to-bill closes year at 1.1x and helps mitigate cycle concerns,” Credit Suisse analyst Robert Spingarn said in a client note.
(Reporting by Ankit Ajmera in Bengaluru and Tim Hepher in Paris; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
(Reuters) – FedEx Corp said on Tuesday it plans to add 1,000 Chanje electric delivery vans to its fleet of vehicles in a bid to save on fuel and cut down on pollution.
The package delivery company will buy 100 Chanje V8100 vans from the Los-Angeles based startup and lease the remaining from U.S. truck rental company Ryder System Inc.
United Parcel Service Inc, FedEx and Deutsche Post AG unit DHL have faced pressure from regulators around the world to lessen the environmental impact of their fleets.
UPS, FedEx and DHL have placed orders for Tesla Inc’s all-electric Semis and already use Workhorse Group Inc’s electric vans.
The Chanje electric vans will have a range of more than 150 miles when fully charged, with maximum cargo capacity of about 6,000 pounds.
Last year, Ryder said it would order electric delivery vans from Chanje and become the exclusive U.S. sales and lease partner for the company.
The Chanje V8100 vans are manufactured by FDG Electric Vehicles Ltd, the startup’s main investor, in Hangzhou, China.
The vans would be used for FedEx’s commercial and residential pick-up and delivery services in California.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Shounak Dasgupta)
Nov 14 (Reuters) – The U.S. National Transportation Safety Board is set to hold an investigative hearing on Wednesday about a midair incident in April during which an engine on a Southwest Airlines Boeing 737 exploded over Pennsylvania, killing one passenger.
Dallas-based Southwest has been under intense scrutiny in the months since an engine on a flight headed from New York to Dallas blew apart, shattering a plane window, flinging shrapnel and killing passenger Jennifer Riordan, one of 149 people aboard.
The episode, which has raised concerns about the safety of similar engines, was the first fatality on a U.S. commercial passenger airline since 2009.
The all-day hearing in Washington will focus on the fan blade design and development history of the engine type that failed, a CFM56-7B made by CFM International, a transatlantic joint-venture between General Electric Co and France’s Safran SA, the NTSB said.
The hearing will also focus on engine fan blade inspection methods and engine fan blade containment design and certification criteria, the NTSB said.
Representatives from Chicago-based planemaker Boeing, CFM, and Southwest Airlines are due at the hearing.
The companies did not immediately respond to requests for comment.
The hearing comes as Indonesian authorities investigate last month’s deadly Lion Air crash involving a newer version of Boeing’s best-selling single-aisle aircraft, the 737 MAX.
