FORDISM IS GLOBALIZATION
Changan Ford Motor to set up electric car JV with Chongqing Changan AutoReuters
Fri, August 11, 2023
Workers assemble vehicles at a plant of Changan Ford in Harbin
BEIJING (Reuters) -Changan Ford Motor plans to set up a new-energy passenger car joint venture with state-owned Chongqing Changan Automobile, a document published by China's market regulator on Friday showed.
Changan Ford Motor will own a 60% stake and Chongqing Changan Automobile the remaining 40% stake. Changan Ford is a 50-50 joint venture between Ford Motor Co and Changan Automobile, meaning Chongqing Changan will own more than 50% of the new venture.
In the future, the joint venture plans to engage in the "supply business of mainstream brand new energy passenger vehicles and the distribution business of Ford brand models that Changan Ford has invested in," the statement said. Ford said in a later statement the new venture also will sell existing Ford-brand gas-powered vehicles.
Ford said the venture was being formed "to better grasp the development trend of electrification and intelligence in the auto industry."
Asked whether this new venture means Ford is minimizing its exposure in China, spokesman Anderson Chan said it was aligned with CEO Jim Farley's strategy that includes leaning into the strength of the company's partners in China. The company said it would provide further details later.
Farley said last month during the company's earnings conference call that the U.S. automaker may have to use its local partners' vehicle platforms more "in certain segments," excluding pickups and large SUVs.
Changan officials could not be reached for further comment.
Sales of Ford with Changan fell 12.6% in the first half form the year-ago period, China Association of Automobile Manufacturers data showed.
More than 40 brands have cut prices in China since January after an initial move by Tesla in a fight for market share in the world's biggest auto market, as car demand slumps, with ripples spreading through the wider industry.
(Reporting by Farah Master and Twinnie Siu in Hong Kong, Zhang Yan in Shanghai, the Beijing Newsroom, and Ben Klayman in Detroit; Editing by Louise Heavens, Susan Fenton and Richard Chang)
Ford reaches deal to move industrial unit to Brazil's Bahia state
Reuters
Fri, August 11, 2023
SAO PAULO (Reuters) - Ford's Brazilian unit on Friday said it reached a transfer agreement with the government of Bahia state to give it ownership of a factory complex closed since 2021.
The automaker said the agreement will provide it with "compensation in amounts compatible with the market," but did not disclose an amount.
Chinese electric vehicle manufacturer BYD has shown interest in the complex, located in the Camacari industrial park. The automaker has since at least mid-2022 been trying to reach a deal with Ford and the Bahia government to acquire the asset.
BYD said in a statement that it "continues with the planning to invest in the Camacari industrial park, maintaining the necessary negotiations with the Bahia government."
It was not immediately clear whether the industrial unit mentioned by the company involves the Ford area.
(Reporting by Alberto Alerigi Jr.; Editing by Sandra Maler)
Reuters
Fri, August 11, 2023
SAO PAULO (Reuters) - Ford's Brazilian unit on Friday said it reached a transfer agreement with the government of Bahia state to give it ownership of a factory complex closed since 2021.
The automaker said the agreement will provide it with "compensation in amounts compatible with the market," but did not disclose an amount.
Chinese electric vehicle manufacturer BYD has shown interest in the complex, located in the Camacari industrial park. The automaker has since at least mid-2022 been trying to reach a deal with Ford and the Bahia government to acquire the asset.
BYD said in a statement that it "continues with the planning to invest in the Camacari industrial park, maintaining the necessary negotiations with the Bahia government."
It was not immediately clear whether the industrial unit mentioned by the company involves the Ford area.
(Reporting by Alberto Alerigi Jr.; Editing by Sandra Maler)
EV Maker VinFast to List on Nasdaq in Rare SPAC Venue Switch
Nguyen Kieu Giang
Thu, August 10, 2023
(Bloomberg) -- Vietnam’s electric-vehicle maker VinFast Auto Ltd. plans to start trading on the Nasdaq next week after a NYSE American-listed special-purpose acquisition company approved their merger.
Black Spade Acquisition Co. shareholders on Thursday signed off on the combination with the manufacturer. VinFast expects to debut on the Nasdaq on or around Aug. 15 under the symbol VFS. The deal values the company at about $23 billion, a statement last month showed.
Shares of the SPAC spiked as much as 76% in New York to trade as high as $18.80. The jump came as more than 700,000 shares changed hands, triggering at least one volatility-related halt.
The planned Nasdaq listing, confirming an earlier Bloomberg News report, caps VinFast’s years-long efforts to become a publicly traded company. The manufacturer is selling made-in-Vietnam electric cars and is currently building a factory in the US.
VinFast still has a long way to go though. The company has been held back by operational problems, hobbling its ambition to gain market share in the competitive EV space. In May, VinFast recalled all the electric sport utility vehicles shipped to the US over a software malfunction, and its losses have been widening due to the cost of its expansion.
It’s somewhat unusual for VinFast to list on a different exchange than the one its blank-check company is traded on. In a typical SPAC merger, the blank-check company’s backers receive new stock in the combined firm in exchange for their old SPAC shares, which are canceled and delisted. The new shares begin trading immediately after the closing of the deal, nearly always on the exchange where the SPAC was approved.
Although Black Spade is NYSE American-listed, VinFast’s prospectus ahead of the vote said the company intended to apply to list on either the NYSE, NYSE American or the Nasdaq.
An equity valuation of $23 billion, or $27 billion including debt, would mean VinFast will trade at a premium to most peers including Rivian Automotive Inc. and Nikola Corp., according to Bloomberg Intelligence analysts Ken Foong and Siti Nur Fairuz Khalil.
Black Spade raised $169 million in a US IPO on the NYSE in 2021, and shifted its listing to the NYSE American in June. About 84% of Black Spade shareholders opted to redeem their stock for cash when approving a deadline extension for the SPAC merger. The redemptions left less than $30 million in the SPAC’s trust.
Around 99.99% of Thursday’s votes were cast in favor of the merger. VinFast and Black Spade expect to close the combination on Aug. 14.
VinFast last month broke ground at its North Carolina factory. The plant is expected to have an initial capacity to make 150,000 vehicles a year, and the company plans to begin production in 2025.
--With assistance from Bailey Lipschultz.
Nguyen Kieu Giang
Thu, August 10, 2023
(Bloomberg) -- Vietnam’s electric-vehicle maker VinFast Auto Ltd. plans to start trading on the Nasdaq next week after a NYSE American-listed special-purpose acquisition company approved their merger.
Black Spade Acquisition Co. shareholders on Thursday signed off on the combination with the manufacturer. VinFast expects to debut on the Nasdaq on or around Aug. 15 under the symbol VFS. The deal values the company at about $23 billion, a statement last month showed.
Shares of the SPAC spiked as much as 76% in New York to trade as high as $18.80. The jump came as more than 700,000 shares changed hands, triggering at least one volatility-related halt.
The planned Nasdaq listing, confirming an earlier Bloomberg News report, caps VinFast’s years-long efforts to become a publicly traded company. The manufacturer is selling made-in-Vietnam electric cars and is currently building a factory in the US.
VinFast still has a long way to go though. The company has been held back by operational problems, hobbling its ambition to gain market share in the competitive EV space. In May, VinFast recalled all the electric sport utility vehicles shipped to the US over a software malfunction, and its losses have been widening due to the cost of its expansion.
It’s somewhat unusual for VinFast to list on a different exchange than the one its blank-check company is traded on. In a typical SPAC merger, the blank-check company’s backers receive new stock in the combined firm in exchange for their old SPAC shares, which are canceled and delisted. The new shares begin trading immediately after the closing of the deal, nearly always on the exchange where the SPAC was approved.
Although Black Spade is NYSE American-listed, VinFast’s prospectus ahead of the vote said the company intended to apply to list on either the NYSE, NYSE American or the Nasdaq.
An equity valuation of $23 billion, or $27 billion including debt, would mean VinFast will trade at a premium to most peers including Rivian Automotive Inc. and Nikola Corp., according to Bloomberg Intelligence analysts Ken Foong and Siti Nur Fairuz Khalil.
Black Spade raised $169 million in a US IPO on the NYSE in 2021, and shifted its listing to the NYSE American in June. About 84% of Black Spade shareholders opted to redeem their stock for cash when approving a deadline extension for the SPAC merger. The redemptions left less than $30 million in the SPAC’s trust.
Around 99.99% of Thursday’s votes were cast in favor of the merger. VinFast and Black Spade expect to close the combination on Aug. 14.
VinFast last month broke ground at its North Carolina factory. The plant is expected to have an initial capacity to make 150,000 vehicles a year, and the company plans to begin production in 2025.
--With assistance from Bailey Lipschultz.
No comments:
Post a Comment