The Business Car Files: DS Automobiles


06 October 2020


Author: Simon Harris

DS Automobiles, PSA’s technology leader, is on course to meet the EU’s carbon emission targets as it establishes itself as a premium brand. Simon Harris talks strategy with UK MD Alain Descat.

When we talked with Alain Descat late in July he was keen to share the news that DS Automobiles was the only multi-fuel premium car manufacturer to be comfortably in line with the EU average CO2 emissions target.

He told us the DS average for the first half of 2020 was 79.9g/km, while other premium car manufacturers (whose ranges were not solely electric) had not succeeded in going below 110g/km.

Manufacturers must meet an average of 95g/km this year for the cars they sell or risk fines imposed by Brussels. There is a formula that rewards the sale of pure EVs, and DS Automobiles

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Car insurer Root files for Nasdaq IPO; H1 revenue of $245M, $145M loss

Root (ROOT) bills itself as “a technology company revolutionizing personal insurance with a pricing model based upon fairness and a modern customer experience.” The company wants to list on the Nasdaq under the “ROOT” ticker.

Root says it’s the only property and casualty insurance carrier with “a scaled proprietary telematics solution” that prices an entire book of business. The company has a large proprietary data set of miles driven, driving behavior, and associated claims.

The insurer is currently licensed in 36 states (active in 30) and hopes to be in every state by early next year.

Financials: 2018 revenue was $43.3M with a $69.1M net loss. 2019 had $290.2M in sales and a $282.4M loss. For H1 2020, revenue was $245.4M and a $144.5M loss.

Dragoneer Investment has agreed to purchase up to $250M in Class  A stock at the IPO price in a private placement that will close right

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On the go: Mobile-based auto insurer Root files for an estimated $800 million IPO

Root, a mobile-based auto insurer, filed on Monday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $800 million.

Root believes that it can challenge the traditional insurance model by using technology to measure risk based on individual performance. The company utilizes a mobile-first engagement strategy, providing a user-friendly interface for customers’ mobile phones.

The Columbus, OH-based company was founded in 2015 and booked $432 million in revenue for the 12 months ended June 30, 2020. It plans to list on the Nasdaq under the symbol ROOT. Root filed confidentially on August 10, 2020. Goldman Sachs, Morgan Stanley, Barclays, Wells Fargo Securities, Credit Suisse, Deutsche Bank, Evercore ISI and Truist Securities are joint bookrunners on the deal. No pricing terms were disclosed.

The article On the go: Mobile-based auto

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Colombia’s Avianca files bankruptcy financing plan, including convertible loan

Adds statement from United Airlines

SAO PAULO, Sept 22 (Reuters)Colombian airline Avianca Holdings AVT_p.CN on Tuesday said it had submitted for court approval a $2 billion bankruptcy financing plan that includes a $700 million convertible loan.

Avianca, Latin America’s second largest airline, filed for bankruptcy in May after years of financial struggles that were made worse by the coronavirus pandemic.

In a court filing, it acknowledged it had a hard time obtaining lenders interested in financing the carrier’s restructuring.

The convertible loan portion, however, could raise red flags. Rival LATAM Airlines Group LTM.SN, which is also in bankruptcy, had its financing plan rejected earlier this month because a convertible loan portion was seen as too beneficial to current shareholders.

Overall, Avianca’s financing plan includes $1.2 billion of new money, of which about a quarter is expected to come from the government of Colombia, where Avianca maintains

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Auto-parts maker Garrett files for bankruptcy

Sept 20 (Reuters)U.S. auto-parts maker Garrett Motion Inc said on Sunday it filed for Chapter 11 bankruptcy protection, as it struggled with heavy debt due to a payment settlement dispute with former parent Honeywell International Inc HON.N and the COVID-19 pandemic.

Garrett said it entered into a “stalking horse” purchase agreement with private equity firm KPS Capital Partners LP for $2.1 billion.

The “stalking horse” agreement would imply that any other bids that come in must be higher than the offer made by KPS. The agreement is subject to court approval.

Garrett said it was also seeking court’s approval for a $250 million debtor-in-possession financing facility. Throughout the reorganization process, Garrett expects to operate without interruption.

The company listed both assets and liabilities in the range of $1 billion and $10 billion, according to a filing with the U.S Bankruptcy Court for the Southern District of New

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