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Carlyle sees big automaker in Japan as electric vehicle shift shakes up supply chains By Reuters

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© Reuters. FILE PHOTO: Cars driving during rush hour are seen through the window of a private bus taking journalists to Miyagi Stadium during the Tokyo 2020 Olympic Games in Sendai, capital of Miyagi, Japan, July 25, 2021. REUTERS/Amr Abdallah

by Makiko Yamazaki

TOKYO (Reuters) – US private equity firm Carlyle Group (NASDAQ:) Inc aims to expand its footprint in the Japanese auto sector as the global shift to electric vehicles (EVs) shakes up the industry’s supply chain, its executives said.

As the world rapidly transitions to electric vehicles, Japanese auto parts suppliers are revising strategies that were traditionally designed for cars with combustion engines, Reiji Terasaka, president of the Carlyle Manufacturing Group in Japan, told Reuters in an interview.

“They think very innovatively about what they can do, and that creates a lot of (investment) opportunities for private equity,” said Terasaka, referring to Carlyle’s global business networks, which its investment firms can leverage to find potential partners abroad.

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The Japanese auto industry used to draw strength from the decades-old keiretsu system – a hierarchical pyramid of suppliers intertwined in stocks with automakers sitting at the top and ensuring the security of the business.

Analysts say the shift to electric vehicles, which require fewer parts but different expertise, such as software engineering, is likely to reshape Japan’s core industry.

Automakers may not be able to support all types of keiretsu companies anymore, Terasaka said, adding that he expects changes in how the keiretsu system works.

Carlyle this month announced a tender offer of 38 billion yen ($270.75 million) for Totoku Electric Co Ltd, a manufacturer of electric wires whose products include wire for car seat heaters.

The company can help portfolio companies expand overseas by supporting them in global talent sourcing, digitization, procurement and regulatory compliance, Brian Bernacek, co-head of the US acquisitions and growth team at Carlyle, said in the same interview.

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The private equity industry has “evolved over the past 10 to 20 years where there has been a greater emphasis on costs,” Bernacek said.

“Today, there is a lot of focus on how to grow the business, bringing in digital tools, different approaches to going to market, and more strategies around pricing and product rationalization,” he added.

($1 = 140.3500 yen)

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Twitter users are running Musk Over Kanye West

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Even Elon Musk has his limits.

Musk, Tesla (TSLA) – Get a free report The CEO, Twitter’s latest owner and self-described free-spirited free-lancer, has confirmed the microblogging site to be “an actual town square” ever since he walked through the front door with sink in hand.

“It’s mad!” The richest man in the world chirp On November 25 “I’m just fighting for free speech in America.”

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In his quest, Musk recently Welcome back Donald Trump, ending a 22-month ban on the former Republican president.



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Renault and Nissan drop December 7 announcement of new deal – JNN via Reuters

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© Reuters. FILE PHOTO: The logos of auto manufacturers Nissan and Renault are pictured at the Kyiv dealership in Ukraine on June 25, 2020. REUTERS/Valentin Ogiryenko/File Photo

TOKYO (Reuters) – Automakers Renault Japanese television network JNN reported Friday that Nissan (EPA:) and Nissan (OTC:) will drop a December 7 announcement of a new deal for their restructured alliance as they struggle to bridge their differences.

Both sides are engaged in discussions to restructure their alliance. Renault is looking to Nissan to invest in its electric vehicle business, while Nissan is seeking to sell part of Renault’s 43% stake in Nissan to put the two partners on an equal footing.

JNN said the two parties decided to forgo the Dec. 7 announcement because they had not reached an agreement as of Friday on how to share the intellectual property.

She added that there are no new plans for when to make an announcement. It is not clear from the report whether JNN cites a single source or multiple sources.

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Neither Renault nor Nissan immediately responded to a request for comment.

Reuters reported earlier that both parties had set December 7 as a possible date for announcing the new alliance structure.

The question of how technology and intellectual property will be shared has proven to be a sticking point in the talks.

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Stocks that might benefit from a Bong win on the bottle

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Seminal cultural questions over the years included paper or plastic? Cash, check or credit card? Boxers or briefs?

Now that recreational marijuana use is increasingly legal, the question for those who want to indulge in relaxers is pot or booze?

Cannabis appears to be the winner market share from alcohol. A total of 50% of American consumers live in a state that has passed legalization measures, according to Coin analysts. Total cannabis sales now account for 10% of alcohol sales, up from 2% in 2017.

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Analysts wrote in a commentary that legal cannabis sales have grown at an average of 46% annually over the past five years, while alcohol sales have increased at an average of 5%.



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