General Motors faces a “sharp and continued drop in profit” from its GM China joint venture in 2019 and beyond and might consider spinning off the JV, Morgan Stanley analyst Adam Jonas said in a note. The strategic and financial options available to an automaker like GM in China “likely shrinks as profitability of the JV declines,” Morgan Stanley said. GM, the largest U.S. carmaker, has four plants in China through its 50:50 joint venture with Shanghai Auto. ‘‘A hypothetical spin-off of GM China to existing shareholders, while not the only option, might provide greater transparency of value and strategy as well as prevent financial resources and IP from moving from the parent company into the JV,’’ Jonas said in a note to investors. ‘‘GM has not indicated it is considering a spin-off of its Chinese JV and we have no knowledge of any such intent.’’ GM and other global automakers have for decades relied on growing … [Read more...] about GM could spin off China joint venture, analyst says
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Petrobras cutting Houston jobs after forming Gulf joint venture
By Jordan Blum Published 3:16 pm CST, Tuesday, December 11, 2018 (FILES) This file photo taken on July 15, 2016 shows the logo of Brazilian oil company Petrobras over the entrance to its headquarters in Rio de Janeiro, Brazil. Petrobras agreed to pay 2.95 billion dollars to settle a class action lawsuit in a New York court brought by shareholders who complained that they were affected by the corruption scandal engulfing the Brazilian state-owned firm, company officials announced Wednesday. / AFP PHOTO / YASUYOSHI CHIBAYASUYOSHI CHIBA/AFP/Getty Images less (FILES) This file photo taken on July 15, 2016 shows the logo of Brazilian oil company Petrobras over the entrance to its headquarters in Rio de Janeiro, Brazil. Petrobras agreed to pay 2.95 billion dollars to ... more Photo: YASUYOSHI CHIBA, Contributor … [Read more...] about Petrobras cutting Houston jobs after forming Gulf joint venture
BMW sets course to buy controlling stake in Chinese joint venture
2018 BMW 5-Series built by BMW Brilliance Automotive joint ventureTo build cars in China and escape the country's steep tariffs on imports, foreign automakers have had to partner with local firms via 50:50 joint ventures. However, the Chinese government earlier this year laid out a plan to phase out the rule by 2022, thus paving the way for foreign automakers to buy out their joint-venture partners and take home more of their profits. The first to take action is the BMW Group which on Thursday said it intends to increase its stake in a joint venture held with Chinese automaker Brilliance from the current 50 percent to a controlling 75 percent. The move will cost BMW approximately $4.2 billion and is still subject to shareholder approval. BMW also on Thursday signed a contract extension with Brilliance to extend their partnership to 2040 and said the joint venture, known as BMW Brilliance Automotive, will spend close to $3.5 billion in upgrading plants and adding capacity. As a result, … [Read more...] about BMW sets course to buy controlling stake in Chinese joint venture
National Oilwell Varco starts joint venture with Saudi Aramco
By Jordan Blum Updated 7:45 am, Friday, June 29, 2018 Photo: Anadolu Agency/Getty Images Image 1of/1 CaptionClose Image 1 of 1 RIYADH, SAUDI ARABIA - MAY 20: (----EDITORIAL USE ONLY MANDATORY CREDIT - "BANDAR ALGALOUD / SAUDI ROYAL COUNCIL / HANDOUT" - NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS----) President and CEO of Saudi Arabian Oil Company Saudi Aramco, Amin H. Nasser (R) and CEO of National Oilwell Varco Clay C. Williams (L) pose for a photo after signing a bilateral agreement, worth 280 billion U.S. dollars, between United States and Saudi Arabia at Al-Yamamah Palace in Riyadh, Saudi Arabia on May 20, 2017. (Photo by Bandar Algaloud / Saudi Royal Council / Handout/Anadolu Agency/Getty Images) less RIYADH, SAUDI ARABIA - MAY 20: (----EDITORIAL USE ONLY MANDATORY CREDIT - "BANDAR ALGALOUD / SAUDI ROYAL COUNCIL / HANDOUT" - NO MARKETING NO ADVERTISING … [Read more...] about National Oilwell Varco starts joint venture with Saudi Aramco
Turkey’s Homegrown Car Moves A Step Closer With Joint Venture
Turkey really wants to build its own car and to do so, five local companies have joined forces to create the “Joint Venture for Turkey’s Car Industry and Commerce Co.” The joint venture involves Anadolu Group, BMC, Kök Group, Turkcell, and Zorlu Holding and sees each company with a 19 per cent share in the venture while five per cent is owned by the Union of Chambers and Commodity Exchanges of Turkey. On Saturday, the joint venture announced the appointment of Mehmet Gürcan Karakaş, a former top global executive from Bosch, as the automaker’s chief executive. “I was born in Turkey, grew up here, went to college in this country, and took my first step into business life in Turkey. “With this project, I am happy to have the opportunity to transfer my knowledge and experience in the global market to my country. Rest assured, Turkey will produce a competitive brand in the global market,” Karakaş said. President of Turkey Recep … [Read more...] about Turkey’s Homegrown Car Moves A Step Closer With Joint Venture