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VW makes $9.2B offer for rest of truckmaker Scania

Volkswagen owns or has controlling interests in three commercial truck operations: besides its own, VW began buying shares in Sweden's Scania in 2000 and now controls 89.2 percent of its shares and 62.6 percent of its capital, then bought into Germany's Man in 2006 - in order to prevent Man from trying to take over Scania - and now owns 75 percent of it. The car company has managed to work out 200 million euros in savings, but believes it can unlock a total of 650 million euros in savings if it takes outright control of Scania and can spread more common parts among the three divisions.
It has proposed a 6.7-billion-euro ($9.2 billion) buyout, but according to a Bloomberg report, Scania's minority investors don't appear inclined to the deal. Although effectively controlled by VW, Scania is an independently-listed Swedish company, and a profitable one at that: in the January-September 2013 period its operating profit was 9.4 percent compared to Man's 0.4 percent. Some of the other shareholders believe that Scania is better off on its own and will not approve the deal, some have asked an auditor to look into the potential conflict of interest between VW and Man, while some are willing to examine the deal and "make an evaluation based on what a long-term owner finds is good," which might not be just "the stock market price plus a few percent." The buyout will only be official assuming VW can reach the 90-percent share threshold that Swedish law mandates for a squeeze-out.
Many of the arguments against boil down to investors believing that Scania's Swedishness and unique offerings are what keep it profitable, and ownership by the German car company will kill that. (Have we heard that somewhere before?) If Volkswagen can buy that additional 0.8-percent share in Scania, perhaps its buyout wrangling with Man will give it an idea of what it's in for: "dozens" of minority investors in the German truckmaker have filed cases against VW, seeking higher prices for their shares. It is likely only to delay the inevitable, though. If VW is really going to compete with Daimler and Volvo in the truck market, it has to get the size, clout and savings to do so.

German prosecutors have recorded calls between VW bigwigs talking dieselgate

It's barely possible to believe how poorly Volkswagen continues to handle dieselgate. Depending on which day you catch the news, the German carmaker embodies the corporate venality of "Michael Clayton," the comic blundering of the Coen Brothers' "Burn After Reading," and the every-man-for-himself vengeance of "Reservoir Dogs." Today is Tarantino day, with news that German prosecutors have recordings of phone calls between former Audi and Porsche development boss Wolfgang Hatz, ex-Volkswagen Group executive Matthias Muller, and current Porsche executives Oliver Blume and Michael Steiner. Hatz made the calls to the trio in November 2015, two months after Volkswagen admitted its diesel-particulate sins to the U.S. Environmental Protection Agency. Hatz was still employed at the time, and in his company car. Who recorded the calls? His wife. Hatz and his missus apparently saw the storm coming and started stacking defenses early. Hatz's wife, who can be heard encouraging Hatz during at least one call, sent the recordings to Hatz's attorney from her mobile phone. According to a Google translation of the German newspaper Handelsblatt's report, she included the note, "Here is a very long, but quite informative conversation on the current situation with useful formulations." The report in Handelsblatt said that in Germany it is generally "not allowed" to record a conversation and pass it on to a third party. We don't know how the authorities will handle this matter, since prosecutors found the recordings in e-mail attachments on Mrs. Hatz's mobile phone. Remember, when the diesel scandal broke, VW spent months saying that only a small number of low-level personnel were behind it, and all of the higher-ups had been blindsided. Ex-CEO Martin Winterkorn claimed to be "stunned that misconduct on such a scale was possible in the Volkswagen Group." Winterkorn successor Matthias Muller said, "according to current information, a few developers interfered in the engine management." Former VW USA honcho Michael Horn told a congressional committee that "a couple of software engineers" programmed the software for reasons no one could understand. In the recorded conversations, Hatz apparently called Muller to find out how VW planned to treat him.

The mood at this year’s Paris Motor Show: Quiet

The Paris Motor Show, held every other year in the early fall, typically kicks off the annual cavalcade of automotive conclaves, one that traverses the globe between autumn and spring, introducing projective, conceptual and production-ready vehicle models to the international automotive press, automotive aficionados and a public hungry for news of our increasingly futuristic mobility enterprise. But this year, at the press preview days for the show, the grounds of the Porte de Versailles convention center felt a bit more sparsely populated than usual. This was not simply a subjective sensation, or one influenced by the center's atypically dispersed assemblage of seven discrete buildings, which tends to spread out the cars and the crowds. There were not only fewer new vehicles being premiered in Paris this year, there were fewer manufacturers there to display them. Major mainstream European OEM stalwarts such as Alfa Romeo, Fiat, Nissan and Volkswagen chose to sit out Paris this year, as did boutique manufacturers like Bentley, Aston Martin and Lamborghini. This is not simply based in some antipathy on the part of the German, British and Italian manufacturers toward the French market — though for a variety of historical and societal reasons that market may be more dominated by vehicles produced domestically than others. Rather, it is part of a larger trend in the industry. Last year, Mercedes-Benz announced that it would not be participating in the flagship North American International Auto Show in 2019 — and that it might not return. Other brands including Jaguar/Land Rover, Audi, Porsche, Mazda and nearly every exotic carmaker have also departed the Detroit show. Some of these brands will still appear in the city in which the show is taking place, and host an event offsite, to capitalize on the presence of a large number of reporters in attendance. And even brands that do have a presence at the show have shifted their vehicle introductions to the days before the official press opening in an attempt to stand out from the crowd. In many ways, this makes sense. With an expanding number of automakers, with diversification and niche-ification of models and with wholesale shifts that necessitate the introduction of EV or autonomous sub-brands, there is a growing sense that, with everyone shouting at the same time, no one can be heard.