|Bid||965,000.00 x 0|
|Ask||967,000.00 x 0|
|Day's Range||943,000.00 - 990,000.00|
|52 Week Range||230,000.00 - 1,050,000.00|
|Beta (5Y Monthly)||1.15|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan. 27, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Dec. 27, 2019|
|1y Target Est||453,379.00|
General Motors Co, as part of a $27 billion initiative to match or surpass Tesla Inc in the electric vehicle sector, is working with "all the best startups" on next-generation EV battery technology while planning a big boost in production capacity for its new Ultium battery system, an executive said on Monday. "We're partnering with some great companies," including Honda Motor and LG Chem, on electric vehicles and batteries, said Doug Parks, GM's executive vice president of global product development.
(Bloomberg Opinion) -- Activist Paul Singer’s Elliott Management Corp. must be kicking itself: Hyundai Motor Co. might end up making cars or at least parts for a future-forward vehicle with none other than Apple Inc. That sent the stock up as much as 24% on Friday, the biggest intraday gain in over two decades.For investors, regardless of any agreement’s details, just the hype of talks of a partnership between the quintessential technology firm and the traditional automaker seems to have validated the South Korean conglomerate’s business. That assessment couldn’t be further from reality.Much like other auto companies, Hyundai has struggled to push ahead with a transformation to electric and autonomous vehicles. In 2018, it unveiled a $7 billion plan to push ahead with development for fuel-cell models – even further on the horizon than nascent battery power — without addressing dismal earnings at the time. The company continued to set ambitious sales targets as the auto market was set to shrink or at least plateau. I wrote that it seemed unrealistic.Hyundai has also had its share of production quality issues, with recalls, civil penalties in the U.S., and cars with engine problems. In the quarter ended September last year, the company posted an operating loss of 313.8 billion Korean won ($277.8 million) and apologized to shareholders and investors “for having repeated quality cost issues over three quarters since 2018.” It has had some luck with sport utility vehicles.Elliott took on the conglomerate in April 2018 with a stake worth approximately $1 billion across group companies, including Hyundai Motor and sister Kia Motors Corp. The fund’s requests included returning more than 12 trillion won in cash to shareholders and establishing an efficient holding company structure. There was much contention around the numbers Hyundai was using to value the businesses and future cash flows.Elliott pointed out that Hyundai Motor had a poor investment record and a history of putting money into non-core projects. The company barely budged. With victory seeming too far away, Elliott sold out with a $430 million loss, according to local media reports in January last year. On the eve of a shareholder proposal that was slapped down, the activist said that several investors that had “suffered years of underperformance” also wanted change.By the time Elliott walked away, the stock had dropped almost 20%.(1) It’s up over 80% since then.Tough luck. Who would have known that Hyundai, of all the automakers to partner with, would make the cut for Apple’s list of suitors. Sure, discussions are in early stages, but going by reports in South Korean media, the deal would cover production, electric vehicles and battery technology. There are far more competent players out there: Think of the German firms for production, and South Korean battery makers like LG Chem Ltd. and Samsung SDI Co. And as reports about the Apple Car resurfaced a couple of weeks ago, much speculation has swirled around contract manufacturers.To be fair, this week Hyundai Motor’s chairman, Chung Eiu-Sun, emphasized that 2021 will be a crucial inflection point “in which we kick-start our great transformation into a new growth engine.” He talked about electrification, hydrogen technology, unmanned aircraft for cargo — you name it.Still, going by the patents that Apple has had approved for a potential vehicle, it’s difficult to understand how – and where – Hyundai could contribute, at least more than any other carmaker. It’s even harder to see why Apple is in discussions.(1) Assumes Elliott departure as of January 23, 2020, based on media reports.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- LG Electronics Inc. plans to spin off some its electric-car components business into a new joint venture with Canada’s Magna International Inc.Magna will buy a 49% stake in the new unit for 501.6 billion won ($453 million) while the remainder will be owned by LG Electronics, the South Korean company said in an exchange filing. The joint venture will make e-motors, inverters and electric-drive systems in factories in Incheon in Korea and Nanjing in China, people familiar with the matter said earlier Wednesday.Shares in LG Electronics soared by the 30% daily limit, their biggest gain on record. The company’s largest shareholder, LG Corp., advanced 10%, the most since March. Magna’s U.S.-listed shares jumped 9% to $72.50 as of 9:43 a.m. in New York.Automotive suppliers globally are increasingly positioning themselves to benefit from the growth in electric cars. A mix of stricter regulations on gasoline-powered cars, favorable government policies and improvements in battery technology has led more automakers to speed up electrification plans. The shift also has sparked a rally in shares of market leader Tesla Inc. as well as Chinese startups Nio Inc. and XPeng Inc.LG Electronics is “emerging as a new alternative to Tesla stock for investors,” said Jeon Kyung-Dae, chief investment officer for equities at Macquarie Investment Management Korea in Seoul. The company is “known as a leader in electronics parts and may produce electric cars based on an original equipment manufacturer model, rather than establishing its own EV brand.”The new company, tentatively called LG Magna e-Powertrain, will service orders from Magna as well as Magna’s clients. EV components being poured into the joint venture include LG Electronics’ battery heater unit as well as its power relay assembly division.Second Spinoff“The market for e-motors, inverters and electric-drive systems is expected to have significant growth between now and 2030, and the JV will target this fast-growing global market with a world-class portfolio,” the companies said in a joint media release. “LG will help accelerate Magna’s time to market and scale of manufacturing for electrification components, while software and systems integration are competencies that Magna brings to this venture.”The tie-up is LG Electronics’ second major investment in the auto industry after it bought automotive-lighting and headlight-systems provider ZKW Group GmbH in 2018 for about 1.1 billion euros ($1.3 billion). Under the terms of that deal, LG Electronics acquired a 70% stake in ZKW Group, with parent LG Corp. purchasing the remaining 30%.Another LG group company, LG Chem Ltd., spun off its energy-storage and EV-battery business to form LG Energy Solution Co. on Dec. 1.The latest venture will also have a software R&D center in Troy, Michigan, where Magna’s U.S. headquarters is located, one of the people familiar with the matter said.LG Magna e-Powertrain will include more than 1,000 employees located at LG locations in the U.S., South Korea and China, and the transaction is expected to close in July, subject to a number of conditions including obtaining LGshareholder approval.Magna, along with other suppliers in the $1 trillion auto parts industry that are deeply enmeshed in advanced technologies, may be in a bind as large automakers in Europe and China transition to low-volume EV sales, Bloomberg Intelligence analysts Kevin Tynan and Andreas Krohn wrote in a note Dec. 7. But Magna’s electric-cars business can be a platform for growth, Tynan said.(Updates Magna shares in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.