German competitors unveil own electric cars in catch-up race against Tesla

The German government hopes to see one million fully electric and hybrid vehicles, such as the EQ from Mercedes, above, on the road by 2022. (AFP)
Updated 23 September 2018

German competitors unveil own electric cars in catch-up race against Tesla

  • Mercedes-Benz maker Daimler, BMW and Volkswagen’s Audi and Porsche subsidiaries between them control some 80 percent of the worldwide premium car market
  • German carmakers have vowed a total of almost €40 billion of investment in battery-powered vehicles in the coming three years

FRANKFURT: After years watching Tesla’s electric cars speed ahead while they have been on the defensive over an industry-wide diesel emissions scandal, German high-end manufacturers have finally unveiled their first challengers to the Californian upstart.
Mercedes-Benz maker Daimler, BMW and Volkswagen’s Audi and Porsche subsidiaries between them control some 80 percent of the worldwide premium car market.
But until recently they offered little battery-powered, zero-emission competition to Tesla and its bombastic chief executive Elon Musk.
That changed this month, with all three groups unveiling their first all-electric SUVs slated for release over the next two years.
Audi rolled out its “E-Tron,” BMW its “iNext” and Mercedes its “EQC,” while Porsche presented an electric coupe, the “Mission E.”
In total, German carmakers have vowed a total of almost €40 billion ($46.7 billion) of investment in battery-powered vehicles in the coming three years, industry association VDA says.
With a market share of around eight percent in Germany — compared with Tesla’s 0.1 percent — Audi hopes electric cars will account for around one in three sales by 2025.
“Finally, it’s getting started!” auto industry expert Ferdinand Dudenhoeffer said.
Time is pressing, as sales of engines powered by automakers’ longtime growth driver diesel have plummeted in the face of plans by many large cities to ban them to bring down air pollution.
The entrance of the three German behemoths into the electric race is far more consequential for Tesla than smaller fish like Britain’s Jaguar, whose “I-PACE” is already on sale in the UK.
And the US tech firm faces major hurdles of its own, struggling to stem losses that have been going on for years while trying to reassure investors and customers of its chief executive’s mental health.
Musk was filmed drinking whisky and smoking cannabis (which is legal in California) with radio host Joe Rogan earlier this month, and in August revealed he was suffering from intense stress and fatigue in an interview with the New York Times.
On Tuesday, Tesla confirmed that the US Department of Justice was investigating the company over Musk’s tweet announcing a plan to remove its shares from the stock market.
Also, on Twitter, the South African entrepreneur admitted Tuesday that after months spent overcoming “production hell” on the firm’s mass-market Model 3, it was now in “delivery logistics hell” struggling to get cars to buyers — while promising “rapid progress.”
For expert Dudenhoeffer, “Tesla is the market leader and has great strength in innovation, but the coming six to nine months will be a decisive test” for its chief executive.
“If he doesn’t manage to stabilize the Model 3 and make the firm profitable, it will get very complicated for him, including with regard to his investors.”
The German government hopes to see one million fully electric and hybrid vehicles on the road by 2022, up from fewer than 100,000 at the start of this year.
But the spread of the technology is constrained by a number of factors, including a limited range of models for sale, slow expansion of charging infrastructure and limited capacity for building new batteries.
A government commission on electric mobility recently found Germany would need to increase the number of charging points available more than five-fold to serve a million drivers.
And while they are perfecting electric motors and other electric-drive components, German carmakers have so far balked at direct investment in costly battery production, aware that they would have to catch up on a head start enjoyed by Asian industry leaders and unwilling to gamble on an adventure in the unfamiliar territory of cell chemistry.
European Commissioner Maros Sefcovic said recently that the EU should be open to state aid for a long-hoped-for “Airbus of batteries,” while business daily Handelsblatt reported the German economy ministry is cobbling together a consortium of companies and research institutes.
For now, the most conspicuous progress comes from China’s CATL.
The challenger for global battery leadership against the alliance of Japanese Panasonic and Tesla announced in July a mammoth new factory in central Germany to supply European customers.


UBS fined $51 million by Hong Kong regulator for overcharging clients

Updated 11 November 2019

UBS fined $51 million by Hong Kong regulator for overcharging clients

  • Hong Kong regulator’s investigation exposed ‘serious systemic internal control failures’ at the bank
  • In March, the Securities and Futures Commission banned UBS from leading initial public offerings in Hong Kong for a year

HONG KONG: Swiss bank UBS was fined HK$400 million ($51.09 million) by Hong Kong’s securities regulator for overcharging up to 5,000 clients for nearly a decade, the watchdog said on Monday.
The Hong Kong Securities and Futures Commission (SFC) said in a statement that an investigation found UBS had overcharged clients on ‘post-trade spread increases’ and charges in excess of standard disclosures and rates between 2008 and 2017.
THE SFC said the investigation exposed ‘serious systemic internal control failures’ at the bank. UBS had failed to disclose conflicts of interests and had overcharged some clients in ‘opaque’ trades, it said.
The overcharging affected 5000 Hong Kong managed client accounts in about 28,700 transactions, it said.
UBS has also agreed to repay the clients HK$200 million, the SFC said.
The regulator said the over-charging occurred in the bank’s wealth management division on bond and structured notes transactions.
UBS was found to have increased the spread charged after the execution of a trade without the clients’ knowledge, it said.
In the statement, the SFC said UBS was also found to have falsified some account statements which were issued to financial intermediaries who were authorized to trade for the clients to “conceal the overcharges.”
UBS said the issues were ‘self-reported’ to the SFC and the results found were against the bank’s standard practice.
“The relevant conduct predominantly relates to limit orders of certain debt securities and structured note transactions, which account for a very small percentage of the bank’s order processing system,” the bank said in a statement.
SFC chief executive Ashley Alder said while each “overcharge represented a fraction of each trade” the bank’s “misconduct involved decisions and a pervasive abuse of trust resulting in significant additional revenue for UBS to which it was not entitled.”
In March, the SFC banned UBS from leading initial public offerings in Hong Kong for a year after it found the bank, and some of its rivals, had failed to carry out sufficient due diligence on a number of deals.
UBS was fined HK$375 million while Morgan Stanley was fined HK$224 million, Merrill Lynch HK$128 million and Standard Chartered (StanChart) HK$59.7 million, all for failures when sponsoring, or leading, public market floats.