Tag: deal (Page 7 of 11)

Ferrari Will Expand its Lineup of Road Cars

August 18, 2019 / WIL BALDWIN

PEBBLE BEACH, Calif. (Reuters) – Italian premium sports car maker Ferrari NV will expand sales of easier-driving grand touring cars, but will not try to chase rival Porsche’s annual sales volume, Ferrari Chairman John Elkann told an audience of classic car enthusiasts gathered at this storied golf resort on the Pacific coast.

Elkann also reiterated that Fiat Chrysler Automobiles NV, of which he is chairman, remains open to opportunities to combine with other automakers, but is positioned to remain independent. Fiat Chrysler in May proposed a merger with French automaker Renault SA, but the deal fell apart after the French government intervened and Elkann withdrew the proposed merger.

Fiat Chrysler Chief Executive Mike Manley sent the same message to Renault and other would-be partners earlier this month.

Elkann visited Pebble Beach during the annual Concours d’Elegance, during which wealthy collectors bring some of the world’s rarest vintage automobiles to be admired — and sold — and premium manufacturers showcase exotic new models.

Ferrari is best known for flashy, high performance sports cars. Among fans of vintage Ferraris, more understated GT, or grand touring, cars from the 1960s, some with seating for four people, are among the most popular models on auction blocks and at enthusiast events. GT cars were designed to be comfortable on longer road trips.

Elkann hinted Ferrari will unveil a new GT type car in November. Ferrari has said previously that about 40% of its total sales could come from GT cars by 2022, up from 32% now.

Ferrari has outlined plans to expand revenue to 5 billion euros ($5.54 billion) by 2022 from 3.4 billion euros in 2017. The company has said it plans to add a model called the Purosangue to compete with a growing stable of sport utility vehicles wearing premium sports car brands, such as the Lamborghini Urus.

Rival Porsche AG, a unit of Volkswagen AG, has expanded its sales to more than 250,000 sports cars and sport utility vehicles annually. Elkann said Ferrari is not aiming for Porsche’s level of sales.

($1 = 0.9018 euros)

(Reporting By Joe White; editing by Diane Craft)

Alstom’s New-Generation Citadis Tram for Caen la Mer

July 29, 2019 / WIL BALDWIN

Alstom has commissioned its new-generation Citadis X05 tram on the three new lines of Caen la Mer. Presided over by Joël Bruneau, President of the Urban Community of Caen la Mer, and Rodolphe Thomas, First Vice-President of Caen la Mer, in charge of transport, travel and infrastructure, the inauguration took place in the presence of Jean-Léonce Dupont, President of Calvados region, Hervé Morin, President of Normandy region, Agnès Monfret, EU delegate, Stéphane Guyon, general Secretary of Calvados Prefecture and Emmanuel Bois, Sales Director for Alstom in France.

“Just one year after the first tram was presented at the La Rochelle site, it is with great pride that Alstom and its teams take part in this inauguration. Thanks to their reliability, availability and ease of maintenance, we have total confidence in the ability of the 26 Citadis trams to meet the growing mobility requirements of the inhabitants of the Urban Community of Caen la Mer,” says Jean-Baptiste Eyméoud, Senior Vice President France at Alstom.

33 metres long and featuring 6 double doors on each side, the Citadis X05 for Caen la Mer can carry more than 210 passengers. It has 6 extra-wide passenger information screens, large windows covering 45% of the vehicle and will offer USB charging sockets, a first in France. In addition, the Citadis X05 for the Urban Community of Caen la Mer can climb slopes with gradients of up to 8% and has standardised, proven and more accessible components. Last but not least, the tram demonstrates a particularly high level of performance in terms of environmental sustainability, thanks in particular to its 100% LED lighting and optimised air conditioning. It is particularly energy efficient and 95% recyclable.

Eight of Alstom’s 13 sites in France designed and manufactured the Citadis trams for the Urban Community of Caen la Mer: La Rochelle (design, assembly, validation, commercial entry into service and warranty), Ornans (engines), Le Creusot (bogies), Tarbes (traction modules), Valenciennes (interior layout), Villeurbanne (on-board computerised systems), Aix en Provence (tachymetry, for measuring travel speed) and Saint-Ouen (design).In total, more than 2,600 Citadis trams have been sold to more than 50 cities in 20 countries.

Airbus Closes In On Air France Jetliner Deal

July 20, 2019 / WIL BALDWIN

LONDON (Reuters) – Airbus is close to a deal worth billions of dollars to sell dozens of A320neo-family and smaller A220 aircraft to Air France as the French network carries out a keenly awaited renewal of its medium-haul fleet, industry sources said.

The deal could include as many as 50-70 Canadian-designed A220 jets, formerly known as CSeries, to replace Air France’s ageing fleet of roughly 50 A318 and A319 aircraft, they said.

Air France is also expected to pick the A320neo family to replace approximately 40 earlier versions of the Airbus A320 that are up to 18 years old.

A spokeswoman for Franco-Dutch parent Air France-KLM said: “Air France is pursuing work on its medium-haul fleet renewal. No decision has been taken at this stage.”

Airbus declined to comment on the deal, which is expected to be formally discussed at an end-month Air France-KLM board meeting.

The expected deal marks a rebound for Airbus after rival Boeing poached part of the fleet of British Airways owner IAG at last month’s Paris Airshow.

That deal caught Airbus off guard, though in the longer term sources say it may also have eased the European planemaker’s anxieties over the grounding of Boeing’s 737 MAX following the Ethiopian Airlines crash in March.

Airbus privately hopes the MAX will survive the crisis to avoid a costly race to develop all-new aircraft and to ease the prospect of a radical change in certification rules.

The anticipated Air France deal also illustrates Airbus’s recent deliberate effort to boost A220 sales by packaging deals together with its benchmark A320, industry sources said.

Airbus bought the loss-making A220 programme from Canada’s Bombardier last year and immediately began offering it to customers that already have other Airbus aircraft, allowing it to juggle prices and ancillary services across the fleet.

Air France-KLM, formed from a merger of French and Dutch flag carriers in 2004, continues to operate a mixed fleet between its two main national networks.

KLM last month provisionally became the first major European customer for the newly certified E195-E2 offered by A220 rival Embraer of Brazil, whose commercial aerospace arm is being acquired by Boeing.

KLM signed a letter of intent for 15 of the upgraded aircraft and options for another 20.

The Dutch carrier and Franco-Dutch low-cost subsidiary Transavia both operate the Boeing 737 family.

(Additional reporting by Laurence Frost; Editing by Geert de Clercq and Luke Baker)

Jaguar Land Rover to Build Electric Cars at UK Plant

July 16, 2019 / WIL BALDWIN

LONDON (Reuters) – Jaguar Land Rover (TAMO.NS) is making a multi-million pound investment to build electric vehicles in Britain, in a major boost for the UK government and a sector hit by the slump in diesel sales and Brexit uncertainty.

Britain’s biggest car company, which built 30 percent of the UK’s 1.5 million cars last year, will make a range of electrified vehicles at its Castle Bromwich plant in central England, beginning with its luxury sedan, the XJ.

“The future of mobility is electric and, as a visionary British company, we are committed to making our next generation of zero-emission vehicles in the UK,” Chief Executive Ralf Speth said on Friday.

The announcement gives a boost to Britain’s automotive sector hit this year by Honda and Ford’s (F.N) plans to close factories.

Jaguar Land Rover (JLR) has highlighted the dangers of a no-deal Brexit and the need to maintain frictionless trade with the European Union, echoing warnings from the industry that just-in-time production could be hit by customs delays and additional bureaucracy.

But it has signed a deal with workers at the Castle Bromwich factory to go from a five-day to a four-day working week with the same amount of hours which should allow the plant to operate more efficiently.

Three of JLR’s four European car plants are in Britain, giving it limited capacity elsewhere on the continent.

The other, in Slovakia, only opened last year and is still being ramped up with other models allocated there.

“We are making this investment because the ongoing Brexit uncertainty has left us with no choice, we had to act, for our employees and our business,” JLR said.

“We are committed to the UK as our home and will fight to stay here but we need the right deal.”

Both candidates to replace Prime Minister Theresa May, Boris Johnson and Jeremy Hunt, have both said they are prepared to take Britain out of the EU on Oct. 31 without a deal, although it is not their preferred option.

Brexiteers have argued that the EU’s biggest economy Germany, which exports hundreds of thousands of cars to Britain ever year, would do its utmost to protect that trade

Friday’s announcement comes after a turbulent few months for Jaguar which announced around 4,500 job cuts earlier in January and posted a 3.66 billion pound ($4.5 billion) loss in 2018/19.

The carmaker is undergoing a turnaround designed to offer an electrified option to all of its new models from 2020 as it seeks to move away from its reliance on diesel vehicles which are being increasingly shunned by buyers.

Jaguar also called on the government to bring giga-scale battery production to the country so that Britain is not left behind in the rush to produce low and zero-emissions vehicles and technology.

Britain’s business minister Greg Clark said the government was doing all it can to meet that goal.

“We are determined to realize that ambition,” he said.

($1 = 0.7952 pounds)

Reporting by Costas Pitas; editing by Michael Holden and Jane Merriman

FILE PHOTO – A car hangs on the wall of Jaguar’s Castle Bromwich manufacturing facility in Birmingham, Britain, November 17, 2016. REUTERS/Darren Staples

Qatar Agrees to Buy U.S. Aircraft, Engines, Defense Equipment

July 9, 2019 / WIL BALDWIN

(Bloomberg) — Qatar has made agreements with U.S. companies to spend billions on airplanes and jet engines and to develop a petrochemical complex, the White House said on Tuesday.

At least some of the deals were previously made but were publicly touted by the Trump administration Tuesday. Among them: Qatar Airways purchasing Boeing Co. 777 freighters and large-cabin aircraft from Gulfstream Aerospace, the private jet unit of General Dynamics Corp.

“They’re investing very heavily in our country,” Trump told reporters at the White House. “They’re creating a lot of jobs. They’re buying tremendous amounts of military equipment including planes.

Qatar’s defense ministry committed to acquire Raytheon Co.’s NASM and Patriot Systems, according to the White House. In addition, a unit of Chevron Corp. entered into an agreement with Qatar Petroleum for the development, construction and operation of a petrochemicals complex in Qatar.

The agreements, whose total cost wasn’t disclosed by the White House, were announced during a visit to the White House by the emir of Qatar, Sheikh Tamim Bin Hamad Al Thani.

The deals come amid a two-year economic blockade of Qatar led by U.S. ally Saudi Arabia and supported by nations including Egypt and the United Arab Emirates. Trump initially appeared to support the Saudi move — echoing its assertions that Qatar supported terrorists — even though it put the U.S. in an awkward position because it has a major military base in Qatar.

But Qatar has looked to improve relations in the U.S., with the emir saying the country was committed to doubling the economic partnership between the two countries. Mansoor bin Ebrahim Al Mahmoud, who leads the Qatar Investment Authority, said earlier this year that the country’s sovereign wealth fund will look to increase its U.S. investment portfolio from around $30 billion to about $45 billion over the next two years.

The country has also made significant gestures toward increasing its spending on U.S. defense contractors, with the U.S. approving a large weapons systems purchase ahead of Sheikh Tamim’s last visit to the country. In 2017, the country signed a deal to spend $12 billion for the purchase of 36 F-15QA fighter jets.

And the U.S. has announced plans to expand and renovate the al-Udeid Air Base near Doha, which houses the forward headquarters of the U.S. military’s Central Command and some 10,000 American troops. During a dinner with the leaders on Monday, Trump thanked Sheikh Tamim for Qatar’s $1.8 billion investment in the project which will be used to construct housing and entertainment facilities.

Several companies have released specifics of some of the agreements that were formalized on Tuesday.

Gulfstream said its deal is for $1 billion in corporate jets that General Dynamics announced in January without giving the customer’s name. Boeing said last month it made a deal to sell five 777 freighters at a list price of $1.8 billion.

Qatar Airways plans to use General Electric Co. jet engines for Boeing 787 and 777 aircraft, according to the White House.

A Chevron statement Tuesday said the company was signing a new agreement at the White House for a previously unannounced $8 billion U.S. Gulf Coast project. The White House statement mentions only a prior deal, announced last month, in which the company would join forces with Qatar Petroleum to build a facility in Qatar.

(Story by Justin Sink and Thomas Black, Edited by Alex Wayne, Justin Blum, and Larry Liebert)

Lucid Motors Hires Former Tesla Production Executive

July 1, 2019 / WIL BALDWIN

July 1 (Reuters) – Lucid Motors said on Monday it hired Tesla Inc’s former vice president of production at its Freemont factory, Peter Hochholdinger, as vice president of manufacturing.

The Newark, California-based electric carmaker in April also named Peter Rawlinson, former chief engineer of Tesla’s Model S, as its chief executive officer.

Lucid, which has more than $1 billion investment from Saudi Arabia’s Public Investment Fund, was founded in 2007 as Atieva by Sam Weng and Bernard Tse, a former vice president of Tesla.

The company positions itself as being less of a direct competitor to Tesla than with luxury car makers such as Audi or BMW, Rawlinson had said.

Hochholdinger, a former production executive at Volkswagen AG, left Tesla last week after three years with the company. At Tesla, he was tasked with improving production for Tesla’s luxury Model S sedan and Model X sport utility vehicle as well as helping build a cost-effective manufacturing program for the Model 3 sedan.

He was the latest high-profile executive to leave Tesla in the past two years, as the automaker struggles to ramp up production of Model 3, which is seen as crucial for its long-term profitability.

Rawlinson said Hochholdinger’s experience in manufacturing would help the company in launching Lucid Air and other future models.

Tesla is expected to report its second-quarter delivery and production numbers this week.

(Reporting by Vibhuti Sharma in Bengaluru; Editing by James Emmanuel)

Brookfield, GIC to Buy Railroad Owner Genesee & Wyoming

July 1, 2019 / WIL BALDWIN

July 1 (Reuters) – Canada’s Brookfield Asset Management Inc and Singaporean sovereign wealth fund GIC on Monday agreed to buy U.S. freight railroad owner Genesee & Wyoming Inc for about $6.4 billion in cash.

Brookfield and GIC’s offer of $112 per share represents a premium of 12 percent to Genesee’s closing price on Friday. Genesee shares were up about 8 percent in trading before the bell.

Including debt, the deal is valued at about 8.4 billion, the companies said in a statement.

Genesee & Wyoming’s revenue have increased at a compound annual growth rate of 16.8% since it floated in the stock market in 1996, rising to $2.3 billion in 2018 from $77.8 million, according to Genesee & Wyoming’s latest annual report.

The company owns a portfolio of 120 short-line railroads, predominantly in North America, with operations in Europe and Australia.

Reuters had reported on the deal on Sunday, citing sources.

The deal, which is expected to close by year end or early 2020, would be the latest big leveraged buyout by Brookfield, which agreed last year to buy Johnson Controls International Plc’s power solutions business for about $13 billion.

Citigroup Global Markets Inc served as the financial adviser to Brookfield and GIC, while BofA Merrill Lynch and Morgan Stanley & Co LLC advised Genesee.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D’Silva)

Eldorado Resorts to Buy Caesars in Reported $18 Billion Deal

June 23, 2019 / WIL BALDWIN

NEW YORK (Reuters) – U.S. casino operator Eldorado Resorts Inc has agreed to merge with Caesars Entertainment Corp in a cash and stock deal that values its peer at about $18 billion including debt, people familiar with the matter said on Sunday.

The agreement comes three months after Reuters reported that Caesars had agreed to give Eldorado access to its books under pressure from billionaire investor Carl Icahn, who earlier this year was awarded seats on Caesars’ board.

The deal, which is expected to be announced on Monday, values Caesars at close to $13 a share, according to the sources. The combined company’s ownership would be split roughly between Eldorado and Caesars shareholders, the sources said.

The sources asked not to be identified because the matter is confidential. An Eldorado spokesman said the company did not comment on rumors or speculation. Caesars did not immediately respond to requests for comment.

The combination of the two companies would create a serious competitor to larger casino industry players, such as Las Vegas Sands Corp, Wynn Resorts Ltd and MGM Resorts International.

Caesars’ shares closed on Friday at $9.99. The company, which emerged from bankruptcy in 2017, operates casinos with the Harrah’s and Horseshoe brands. It had 53 properties in 14 U.S. states and five countries outside the United States at the end of December.

Eldorado has a market value of $4 billion. It also had long-term debt at the end of March of $3.1 billion. It owns and operates 26 properties in 12 U.S. states.

(Reporting by Greg Roumeliotis; Editing by Peter Cooney)

Embraer Announces KLM Intention for up to 35 E195-E2 Jets

June 19, 2019 / WIL BALDWIN

Paris, France, June 19, 2019 – Embraer announced today, at the 53rd International Paris Air Show, KLM Cityhopper’s intention to purchase up to 35 E195-E2 jets, 15 firm orders with purchase rights for a further 20 aircraft of the same model. This intention, which still requires a Purchase Agreement, has a value of USD 2.48 billion based on Embraer’s current list prices. The order will be added to Embraer’s backlog as soon as a firm contract is completed.

“With a fleet of 49 E-Jets, KLM is already the largest Embraer operator in Europe and adding KLM to the E2 family of operators would be a huge vote of confidence in Embraer, our after sales care, and the E2 programme. The aircraft uses 30% less fuel per seat compared to KLM Cityhopper’s current E190s. And in terms of aircraft noise, the aircraft is the quietest in its class both internally for passengers, and externally, by a significant margin*”, said John Slattery, President and CEO, Embraer Commercial Aviation.

KLM President & CEO Pieter Elbers, said, “Embraer has been a key partner for KLM and Cityhopper over the past ten years. Our customers appreciate the E190 and E175’s. The E2 would be a welcome addition to the KLM fleet, giving us greater capacity flexibility and help to manage down costs. In addition, the environmentally friendly E195-E2 also supports our sustainability goals with lower levels of noise and emissions.”

The economic and environmental performance of the aircraft makes the E195-E2 the ideal aircraft for growing KLM’s European business and supporting their hub-and-spoke operation, complementing the mainline fleet. This is why Embraer nicknamed the jet – The Profit Hunter.

KLM Cityhopper started the process of replacing its fleet of venerable Fokker aircraft for E-Jets in 2008, in order to enhance the existing network and to permit the efficient development of new routes. KLM Cityhopper’s all Embraer fleet currently has 49 E-Jets, the largest E-Jet fleet in Europe – 32 E190’s and 17 E175’s.

Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers from all over the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleet of 75 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.

*Note to Editors External noise technical information: the cumulative margin to ICAO Stage IV noise limit ranges from 19 to 20 EPNdB, 4.0 EPNdB better than its direct competitor.

About KLM Cityhopper

KLM Cityhopper is Europe’s largest regional carrier. In 2018 it operated more than 300 flights per day from Amsterdam Airport Schiphol to 72 European destinations. Since 2018, KLM Cityhopper’s fleet consists entirely of Embraer jets, including 32 E190’s and 17 E175’s. This will give KLM the single largest Embraer fleet in Europe.

Elbit Eyes Acquisition Opportunities from Raytheon-UTC Deal

June 19, 2019 / WIL BALDWIN

PARIS, June 19 (Reuters) – Israel-based Elbit Systems on Wednesday said it would keep an eye out for possible acquisitions if the proposed merger of U.S. aerospace companies Raytheon Co and United Technologies Corp triggers certain divestments.

“We could have several opportunities coming from that kind of merger,” Ran Kril, executive vice president for International Marketing & Business Development, told Reuters at the Paris Airshow.

Kril said Elbit was committed to expanding in the United States, and would keep a close eye on any possible divestments ordered by U.S. authorities reviewing the proposed merger.

He said Elbit expected to wrap up the purchase of the night vision business of Harris Corp in the autumn. Antitrust authorities had ordered the sale of that business as a condition for approving Harris’s merger with L3 Technologies.

“We’ve decided to grow in America and after the Harris acquisition, we will always find opportunities to expand our portfolio and our presence in the U.S.,” Kril said.

(Reporting by Andrea Shalal, editing by Deepa Babington)

Archives