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Yahoo
a day ago
- Automotive
- Yahoo
Bill Ford says Michigan battery plant ‘in peril' under proposed legislation
The executive chairman of Ford Motor Co. said its $2.5 billion electric vehicle battery factory in southwestern Michigan would be 'in peril' if it loses production tax credits as called for in proposed U.S. House legislation. The bill, which still must be reconciled by the Senate, could make the plant ineligible for a key manufacturing subsidy due to its ties to Chinese battery company CATL. If that were to happen, it would harm the business case in Marshall, said Bill Ford. 'We have built the business case on Marshall around that,' the chairman told reporters after a panel discussion at the Mackinac Policy Conference. 'My point is politicians can agree or disagree whether those kind of things are desirable, and that's fine. But don't change the rules once you've already made the investment, because that to me is just a question of fairness, and that's unfair.' The company likely will press hard to change the language of the final bill to ensure the factory, located about 107 miles West of Detroit and set to launch production next year, makes it to the finish line. While some lawmakers are seeking to keep tax credits away form 'foreign entities of concern,' as CATL is labeled in the proposed bill, the factory in Marshall would create 1,700 jobs and serve as an economic catalyst, the automaker and proponents has argued. Bill Ford said he is not sure whether the tax credits for the Marshall plant will ultimately be protected. 'I don't know the likelihood, but I do know that if it goes away, it puts in peril the plant and the jobs in Michigan,' he said. The chairman made the remarks after an on-stage interview alongside his daughter and Ford board member Alexandra Ford English at the Mackinac Policy Conference. The discussion, moderated by former TV anchor Christy McDonald, centered on the father-daughter dynamics in one of America's most famous family businesses. Bill Ford, great-grandson of company founder Henry Ford, is the automaker's fourth leader named Ford in its more than 120-year existence. English was elected to the automaker's influential board of directors in 2021, along with her cousin Henry Ford III, son of Edsel B. Ford II, a former board member and director at the company. English began her career in retail, working at Gap Inc. and Tory Burch. Even if she had wanted to jump straight from college to the automaker, her father wouldn't have allowed it. Bill Ford's rule is that family members cannot go right into the business. 'We cannot be a family employment agency,' Ford said. 'We want to make sure the young people that come into our company are incredibly well qualified and motivated.' Sign up for the quarterly Automotive News U.S. Sales report to get data and news sent to your inbox as soon as it's compiled. English served as an employee at the automaker from 2017 until June 2022, running operations for Ford's Autonomous Vehicle LLC before the company shut down efforts to develop a fully autonomous vehicle. She said the inspiration to work for the automaker started when her father would come home from work and talk to his family about his day. The family values and those of the company are one in the same, she said, making it a seamless cultural fit working for the automaker. 'Whenever he spoke about employees, it was always with deep respect, and that leaves an impression,' English said. 'I don't remember anything other than those values. It's all we know.' Ford said one characteristic English is never afraid to bring to the table – over family dinner or in the boardroom – is brutal honesty. That's important, the chairman said, because most others aren't willing to be that blunt with the boss. 'She's always the one that will sit me down and tell me what I don't want to hear,' he said. 'Not many people in life will do that. She's been the brave one.' On the topic of constantly shifting federal policy under President Donald Trump, the chairman said his company, expecting to take a $1.5 billion tariff hit this year, speaks with the White House on a near daily basis. Ford, which boasts the most U.S.-based vehicle production among its domestic counterparts, hopes the Trump administration and lawmakers recognize that when devising policy that could impact its Marshall factory and broader production plans. The company's decision to build more in the U.S. amounts to a $2,000 per vehicle 'penalty' compared to customers more exposed to foreign manufacturing, the chairman said. 'For us, it was the right decision to invest in America and pay that penalty,' he said. 'I don't regret that for a minute.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malay Mail
a day ago
- Automotive
- Malay Mail
Zeekr investors hit out at Geely's US$2.2b privatisation plan, say EV maker worth more than Nio, Xpeng, Li Auto
Five early investors, including CATL and Intel Capital, have sent letters Say offer values Zeekr far lower than some peers despite better prospects Geely plans to merge Zeekr into Geely Auto unit HONG KONG/SHANGHAI, May 30 — China's Geely is undervaluing its premium electric car unit Zeekr with the US$2.2 billion take-private offer it has made, five early investors in Zeekr have written to its board, according to three sources with direct knowledge of the matter. The investors, including Contemporary Amperex Technology Co Ltd (CATL), Intel Capital and Boyu Capital, who invested in Zeekr's maiden fundraising round, have sent two letters written jointly to the company and a special committee formed to assess the offer, saying that the privatisation price was too low to reflect the fair value of Zeekr, the sources told Reuters. Geely, one of China's most globally known automakers due to its purchase of foreign marquees such as Volvo and Proton, offered on May 7 to privatise Zeekr, saying it wanted to fully merge Zeekr into Geely Auto. Geely Auto owns about two-thirds of Zeekr. Both companies sit under the umbrella of their unlisted parent, Geely Holding. Geely founder and chairman Eric Li also chairs the Zeekr board. The move surprised the market and the auto industry, given how it came just a year after it took the EV brand public in the United States. It has also raised questions on the prospects of two other Geely units preparing for Hong Kong listings, including ride-hailing firm CaoCao Inc, and raised questions over whether Geely might delist its other US-listed units such as Polestar . The other two investors who wrote the letters were Bilibili and Cathay Fortune Corp. A spokesperson for Geely said that talks with Zeekr's special committee were ongoing. Zeekr, CATL, Intel Capital, Boyu Capital, Cathay Fortune did not respond to requests for comment. Bilibili declined to comment. The offer is non-binding according to Geely Auto's filing. A binding commitment will only arise upon the execution of definitive agreements, subject to the terms and conditions, it said. Improving the strategic focus Li has pivoted Geely away from its history of aggressive acquisitions to streamlining operations and cutting costs amid a brutal price war in China's auto market, the world's biggest. He launched last year a campaign to improve the group's strategic focus and eliminate internal competition, which has so far involved it restructuring its brands into two units and merging some teams that were working on digital cockpit technology. Zeekr is now viewed as Geely's best asset – sales of the brand reached 41,403 units in the first quarter of this year with six models, increasing 25 per cent from a year ago and outselling BYD's premium brand Denza. The five investors said in the first letter they sent last week that the privatisation price only valued Zeekr at US$6.5 billion, much lower than peers such as Li Auto, Nio and Xpeng, according to the three sources. They said Zeekr has a better cash flow and profitability prospects than these peers, and urged the deal should only proceed after obtaining the agreement of the majority of the 'independent minority' shareholders. Two of the sources said the investors sent a second letter this week, reiterating what they said in the first letter and urging the Zeekr special committee to carefully review and evaluate the offer. The five investors took part in Zeekr's first external fundraising round of US$500 million that valued it at US$9 billion in 2021. At the time, they together held a 6 per cent stake in the company. A subsequent fundraising round valued the EV maker at US$13 billion in 2023 but a year later it went public at a valuation of US$5.5 billion on a fully diluted basis, less than half of the pre-IPO figure. Two of the sources said Y2 Capital, an investor in Zeekr's IPO, had sent a similar letter voicing concerns to Geely's leadership. Y2 Capital did not respond to a request for comment. Geely's offer of US$25.66 per American Depository Share of Zeekr represented a 24 per cent premium to its average share price over the four weeks prior to the offer announcement. The average premium paid in US take-private deals has been about 40 per cent since 2023, according to LSEG data. Zeekr shares are now trading above the offer price and last closed at US$26.59. However, analysts said that Geely Auto may have sufficient votes to carry out the privatisation without the need for other shareholder approvals given its 65.7 per cent stake in Zeekr. — Reuters
Yahoo
a day ago
- Automotive
- Yahoo
Exclusive-Zeekr investors criticise Geely's $2.2 billion take-private bid as inadequate, say sources
HONG KONG/SHANGHAI (Reuters) -China's Geely is undervaluing its premium electric car unit Zeekr with the $2.2 billion take-private offer it has made, five early investors in Zeekr have written to its board, according to three sources with direct knowledge of the matter. The investors, including Contemporary Amperex Technology Co Ltd (CATL), Intel Capital and Boyu Capital, who invested in Zeekr's maiden fundraising round, have sent two letters written jointly to the company and a special committee formed to assess the offer, saying that the privatisation price was too low to reflect the fair value of Zeekr, the sources told Reuters. Geely, one of China's most globally known automakers due to its purchase of foreign marquees such as Volvo and Proton, offered on May 7 to privatise Zeekr, saying it wanted to fully merge Zeekr into Geely Auto. Geely Auto owns about two-thirds of Zeekr. Both companies sit under the umbrella of their unlisted parent, Geely Holding. Geely founder and chairman Eric Li also chairs the Zeekr board. The move surprised the market and the auto industry, given how it came just a year after it took the EV brand public in the United States. It has also raised questions on the prospects of two other Geely units preparing for Hong Kong listings, including ride-hailing firm CaoCao Inc, and raised questions over whether Geely might delist its other U.S.-listed units such as Polestar. The other two investors who wrote the letters were Bilibili and Cathay Fortune Corp. A spokesperson for Geely said that talks with Zeekr's special committee were ongoing. Zeekr, CATL, Intel Capital, Boyu Capital, Cathay Fortune did not respond to requests for comment. Bilibili declined to comment. The offer is non-binding according to Geely Auto's filing. A binding commitment will only arise upon the execution of definitive agreements, subject to the terms and conditions, it said. IMPROVING THE STRATEGIC FOCUS Li has pivoted Geely away from its history of aggressive acquisitions to streamlining operations and cutting costs amid a brutal price war in China's auto market, the world's biggest. He launched last year a campaign to improve the group's strategic focus and eliminate internal competition, which has so far involved it restructuring its brands into two units and merging some teams that were working on digital cockpit technology. Zeekr is now viewed as Geely's best asset - sales of the brand reached 41,403 units in the first quarter of this year with six models, increasing 25% from a year ago and outselling BYD's premium brand Denza. The five investors said in the first letter they sent last week that the privatisation price only valued Zeekr at $6.5 billion, much lower than peers such as Li Auto, Nio and Xpeng, according to the three sources. They said Zeekr has a better cash flow and profitability prospects than these peers, and urged the deal should only proceed after obtaining the agreement of the majority of the "independent minority" shareholders. Two of the sources said the investors sent a second letter this week, reiterating what they said in the first letter and urging the Zeekr special committee to carefully review and evaluate the offer. The five investors took part in Zeekr's first external fundraising round of $500 million that valued it at $9 billion in 2021. At the time, they together held a 6% stake in the company. A subsequent fundraising round valued the EV maker at $13 billion in 2023 but a year later it went public at a valuation of $5.5 billion on a fully diluted basis, less than half of the pre-IPO figure. Two of the sources said Y2 Capital, an investor in Zeekr's IPO, had sent a similar letter voicing concerns to Geely's leadership. Y2 Capital did not respond to a request for comment. Geely's offer of $25.66 per American Depository Share of Zeekr represented a 24% premium to its average share price over the four weeks prior to the offer announcement. The average premium paid in U.S. take-private deals has been about 40% since 2023, according to LSEG data. Zeekr shares are now trading above the offer price and last closed at $26.59. However, analysts said that Geely Auto may have sufficient votes to carry out the privatisation without the need for other shareholder approvals given its 65.7% stake in Zeekr.
Reuters
a day ago
- Automotive
- Reuters
Exclusive: Zeekr investors criticise Geely's $2.2 billion take-private bid as inadequate, say sources
HONG KONG/SHANGHAI, May 30 (Reuters) - China's Geely is undervaluing its premium electric car unit Zeekr (ZK.N), opens new tab with the $2.2 billion take-private offer it has made, five early investors in Zeekr have written to its board, according to three sources with direct knowledge of the matter. The investors, including Contemporary Amperex Technology Co Ltd (CATL) ( opens new tab, Intel Capital and Boyu Capital, who invested in Zeekr's maiden fundraising round, have sent two letters written jointly to the company and a special committee formed to assess the offer, saying that the privatisation price was too low to reflect the fair value of Zeekr, the sources told Reuters. Geely, one of China's most globally known automakers due to its purchase of foreign marquees such as Volvo ( opens new tab and Proton, offered on May 7 to privatise Zeekr, saying it wanted to fully merge Zeekr into Geely Auto ( opens new tab. Geely Auto owns about two-thirds of Zeekr. Both companies sit under the umbrella of their unlisted parent, Geely Holding. Geely founder and chairman Eric Li also chairs the Zeekr board. The move surprised the market and the auto industry, given how it came just a year after it took the EV brand public in the United States. It has also raised questions on the prospects of two other Geely units preparing for Hong Kong listings, including ride-hailing firm CaoCao Inc, and raised questions over whether Geely might delist its other U.S.-listed units such as Polestar . The other two investors who wrote the letters were Bilibili ( opens new tab and Cathay Fortune Corp. A spokesperson for Geely said that talks with Zeekr's special committee were ongoing. Zeekr, CATL, Intel Capital, Boyu Capital, Cathay Fortune did not respond to requests for comment. Bilibili declined to comment. The offer is non-binding according to Geely Auto's filing. A binding commitment will only arise upon the execution of definitive agreements, subject to the terms and conditions, it said. Li has pivoted Geely away from its history of aggressive acquisitions to streamlining operations and cutting costs amid a brutal price war in China's auto market, the world's biggest. He launched last year a campaign to improve the group's strategic focus and eliminate internal competition, which has so far involved it restructuring its brands into two units and merging some teams that were working on digital cockpit technology. Zeekr is now viewed as Geely's best asset - sales of the brand reached 41,403 units in the first quarter of this year with six models, increasing 25% from a year ago and outselling BYD's ( opens new tab premium brand Denza. The five investors said in the first letter they sent last week that the privatisation price only valued Zeekr at $6.5 billion, much lower than peers such as Li Auto ( opens new tab, Nio ( opens new tab and Xpeng ( opens new tab, according to the three sources. They said Zeekr has a better cash flow and profitability prospects than these peers, and urged the deal should only proceed after obtaining the agreement of the majority of the "independent minority" shareholders. Two of the sources said the investors sent a second letter this week, reiterating what they said in the first letter and urging the Zeekr special committee to carefully review and evaluate the offer. The five investors took part in Zeekr's first external fundraising round of $500 million that valued it at $9 billion in 2021. At the time, they together held a 6% stake in the company. A subsequent fundraising round valued the EV maker at $13 billion in 2023 but a year later it went public at a valuation of $5.5 billion on a fully diluted basis, less than half of the pre-IPO figure. Two of the sources said Y2 Capital, an investor in Zeekr's IPO, had sent a similar letter voicing concerns to Geely's leadership. Y2 Capital did not respond to a request for comment. Geely's offer of $25.66 per American Depository Share of Zeekr represented a 24% premium to its average share price over the four weeks prior to the offer announcement. The average premium paid in U.S. take-private deals has been about 40% since 2023, according to LSEG data. Zeekr shares are now trading above the offer price and last closed at $26.59. However, analysts said that Geely Auto may have sufficient votes to carry out the privatisation without the need for other shareholder approvals given its 65.7% stake in Zeekr.
Yahoo
a day ago
- Automotive
- Yahoo
Exclusive-Zeekr investors criticise Geely's $2.2 billion take-private bid as inadequate, say sources
HONG KONG/SHANGHAI (Reuters) -China's Geely is undervaluing its premium electric car unit Zeekr with the $2.2 billion take-private offer it has made, five early investors in Zeekr have written to its board, according to three sources with direct knowledge of the matter. The investors, including Contemporary Amperex Technology Co Ltd (CATL), Intel Capital and Boyu Capital, who invested in Zeekr's maiden fundraising round, have sent two letters written jointly to the company and a special committee formed to assess the offer, saying that the privatisation price was too low to reflect the fair value of Zeekr, the sources told Reuters. Geely, one of China's most globally known automakers due to its purchase of foreign marquees such as Volvo and Proton, offered on May 7 to privatise Zeekr, saying it wanted to fully merge Zeekr into Geely Auto. Geely Auto owns about two-thirds of Zeekr. Both companies sit under the umbrella of their unlisted parent, Geely Holding. Geely founder and chairman Eric Li also chairs the Zeekr board. The move surprised the market and the auto industry, given how it came just a year after it took the EV brand public in the United States. It has also raised questions on the prospects of two other Geely units preparing for Hong Kong listings, including ride-hailing firm CaoCao Inc, and raised questions over whether Geely might delist its other U.S.-listed units such as Polestar. The other two investors who wrote the letters were Bilibili and Cathay Fortune Corp. A spokesperson for Geely said that talks with Zeekr's special committee were ongoing. Zeekr, CATL, Intel Capital, Boyu Capital, Cathay Fortune did not respond to requests for comment. Bilibili declined to comment. The offer is non-binding according to Geely Auto's filing. A binding commitment will only arise upon the execution of definitive agreements, subject to the terms and conditions, it said. IMPROVING THE STRATEGIC FOCUS Li has pivoted Geely away from its history of aggressive acquisitions to streamlining operations and cutting costs amid a brutal price war in China's auto market, the world's biggest. He launched last year a campaign to improve the group's strategic focus and eliminate internal competition, which has so far involved it restructuring its brands into two units and merging some teams that were working on digital cockpit technology. Zeekr is now viewed as Geely's best asset - sales of the brand reached 41,403 units in the first quarter of this year with six models, increasing 25% from a year ago and outselling BYD's premium brand Denza. The five investors said in the first letter they sent last week that the privatisation price only valued Zeekr at $6.5 billion, much lower than peers such as Li Auto, Nio and Xpeng, according to the three sources. They said Zeekr has a better cash flow and profitability prospects than these peers, and urged the deal should only proceed after obtaining the agreement of the majority of the "independent minority" shareholders. Two of the sources said the investors sent a second letter this week, reiterating what they said in the first letter and urging the Zeekr special committee to carefully review and evaluate the offer. The five investors took part in Zeekr's first external fundraising round of $500 million that valued it at $9 billion in 2021. At the time, they together held a 6% stake in the company. A subsequent fundraising round valued the EV maker at $13 billion in 2023 but a year later it went public at a valuation of $5.5 billion on a fully diluted basis, less than half of the pre-IPO figure. Two of the sources said Y2 Capital, an investor in Zeekr's IPO, had sent a similar letter voicing concerns to Geely's leadership. Y2 Capital did not respond to a request for comment. Geely's offer of $25.66 per American Depository Share of Zeekr represented a 24% premium to its average share price over the four weeks prior to the offer announcement. The average premium paid in U.S. take-private deals has been about 40% since 2023, according to LSEG data. Zeekr shares are now trading above the offer price and last closed at $26.59. However, analysts said that Geely Auto may have sufficient votes to carry out the privatisation without the need for other shareholder approvals given its 65.7% stake in Zeekr. Sign in to access your portfolio
