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VW places battery unit IPO on backburner

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  VOLKSWAGEN  is pushing back plans to seek outside investors for its battery unit after slower demand for electric vehicles dims prospects for the business, with the industry facing an increasingly daunting reality in the EV transition. Europe’s biggest carmaker has also put talks with investors on the backburner as it faces doubts it can make its own batteries at scale, people familiar with the matter said, declining to be named detailing internal matters. The company is no longer prioritising stake sales or a potential listing of its battery company PowerCo business this year or next, they said.  VW preference shares turned negative following the news, falling as much as 1 per cent. The stock is down 1.9 per cent over the past year, giving the manufacturer a valuation of US$69.3 billion. The situation remains fluid and VW could still move forward with the plans if the market improves, according to the people. Initial public offerings had their worst year in 2023 in more than a decad

Having raced past rivals to become the world’s top EV seller, BYD’s challenge is to stay ahead

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  INVESTORS in BYD might be feeling like the Chinese automobile maker is at a crossroads. And perhaps rightly so. BYD – short for Build Your Dreams – last week  posted guidance for its 2023 net profit  amid a flurry of industry news about slowing demand for electric vehicles (EVs). The company estimated that its full-year earnings would come in at between 29 billion yuan (S$5.4 billion) and 31 billion yuan, which works out to an improvement of 74.4 per cent and 86.5 per cent year on year. While its bottom line improvement in 2023 is no small feat, it is dwarfed by the 446 per cent surge it recorded in 2022, which raised its net profit to 16.6 billion yuan. Instead of driving the stock price higher,...

Not satisfied with pole position, BYD aims for bigger EV market share in Singapore

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  SINGAPORE’S top passenger electric vehicle (EV) seller BYD is aiming for a larger market share here as it sets to rev up the Chinese brand to become a better-known marque and improve consumers’ understanding of green vehicles. Liu Xueliang, general manager of BYD Auto Industry Company, did not provide a sales target despite being pressed by  The Business Times , except saying that BYD hopes its sales will do better this year. He oversees the Asia-Pacific market and spoke to BT last Friday (Feb 23)...

BYD takes different route from Tesla by partnering for regional expansion, looking at plug-in hybrids

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  IN ITS South-east Asia push, China electric vehicle (EV) giant BYD is taking the opposite approach from its biggest rival Tesla, signing many franchise dealers in contrast to Tesla’s direct-sales model. Liu Xueliang, general manager for Asia-Pacific sales for BYD Auto, said in an interview with  The Business Times:  “We choose dealers because with electric cars, there are still many consumers who are sceptical about the product itself. “Through dealers, we still want to be able to reassure customers face to face,” he said in Mandarin. As it scales up in the region, BYD may also offer not just EVs, but plug-in hybrids (PHEVs) as well, although these vehicles are pricier than conventional petrol-electric...

Australian taxi operator A2B shareholders vote in favour of ComfortDelGro acquisition

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  SHAREHOLDERS of Australian taxi network operator A2B voted in favour of ComfortDelGro’s acquisition on Monday (Mar 25), with 97.7 per cent of votes cast for the proposed deal. On Dec 22, its unit ComfortDelGro Corporation Australia  proposed to acquire all shares in A2B Australia  that it does not already own via a scheme of arrangement, in which the land transport operator will pay A$1.45 (S$1.27) in cash per share. Before the proposed acquisition, ComfortDelGro and its Australian subsidiary Swan Taxis held about 9.3 per cent of A2B, which is listed on the Australian Securities Exchange. The Australian taxi network operator’s offerings range from taxi services brands to cab-charge digital payment solutions. ComfortDelGro said that the orders approving the scheme will be sought from the Supreme Court of New South Wales on Mar 28. The transaction is expected to be implemented in April 2024, subject to satisfaction of all other applicable conditions. “Upon completion, A2B’s 8,000-vehic

Australian mega funds seen controlling A$13.6 trillion of pensions

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  A GROUP of massive pension funds will dominate Australia’s retirement system in the coming decades as increasing mergers and rivalry leave just a handful of powerhouse investors. That is according to a new report from Mercer, which predicts industry assets topping A$13.6 trillion (S$12 trillion) by 2048, up from A$3.6 trillion currently. It sees a dozen funds controlling more than A$100 billion each by 2028, driven by mergers, organic growth and investment performance. There are currently just five funds overseeing at least that amount. At the same time, the number of funds will shrink as regulators pressure smaller and under-performing players to merge. Mercer forecasts the total falling from 107 funds to 77 over the next five years, and halving in the next decade. Australia’s pensions system is the fourth largest in the world, with its rapid growth being fuelled by the compulsory contributions of 11 per cent of workers’ wages, rising to 12 per cent in 2025. AustralianSuper and Aust

New York pension fund further restricts investments in Exxon, other oil companies

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  THE New York State Common Retirement Fund would restrict its investments in eight integrated oil and gas companies including Exxon Mobil, after a review of the companies’ readiness to transition to a low-carbon economy, New York Comptroller Thomas DiNapoli, who oversees retirement assets, said. While various universities and public pension funds have restricted oil and gas holdings, few large corporate asset managers have taken similar steps amid high energy prices. The US$280 billion New York State fund is not a major holder of shale companies, but as the third-largest US state pension fund its decisions are closely followed as other institutions weigh whether to move away from fossil fuel stocks. The fund had holdings of nearly US$26.8 million as of Dec 31, 2023 from the companies to be divested and restricted, which include Guanghui Energy Company, Echo Energy, IOG, Oil and Natural Gas, Delek Group, Dana Gas, and Unit Corp. Exxon did not immediately reply to a request for comment.