• Follow us


Why a Fiat Chrysler merger with Renault is still likely | The Star

Italy’s flagship automaker appears snakebit in winning a merger partner. Impatient with French government meddling in its latest merger attempt, Fiat Chrysler Automobiles NV pulled the plug last week on merger talks with French automaker Renault SA.

Fiat Chrysler has been, with considerable futility, shopping itself around practically since it was created with the full merger of Fiat SpA and Chrysler Corp. in 2014.

The brain trust at Fiat Chrysler head office in Turin has long believed the Italian-American automaker needs to further bulk up, lacking the resources on its own to develop best-in-class electric vehicles and driverless, or autonomous, cars.

The stock market agrees — shares of both Fiat Chrysler and the jilted Renault fell on news that the talks had failed — and so do I.

The story isn’t over, though.

French Budget Minister Gerald Darmanin last week held the door open to renewed talks with “this Italian giant.” That slip of the tongue reveals French fears that Turin would end up running the combined firm, and France would effectively lose Renault as a national industrial champion.

The French are also thinking of the last megamerger in autos that was billed, as this one is, as a “merger of equals.” But Germans immediately took control of the new DaimlerChrysler AG, and then botched it.

France wants to drag an unwilling Nissan Motor Co., Renault’s 20-year partner, into the deal to decrease Turin’s influence, an item on the agenda at the G-20 finance ministers summit this past weekend.

If that diplomatic arm-twisting does yield a deal — which is still more likely than not — it will be a political act, just as the creation of Airbus SE was.

Canada’s 5G telecom race: let everyone compete

Reports last week that Nokia Corp., the Finnish telecom-equipment maker, is knocking on the doors of Canadian telcos to sell them on its 5G proficiency are another sign that Canada is among the world’s most interesting mobility markets.

The biggest players in the fifth-generation mobility networks that will vastly increase the speed and capability of wireless networks are all heavily invested in Canada. They aim to use Canada as a global showcase of their 5G prowess, enabling them to secure orders worldwide.

An early lead in Canadian 5G held by China’s Huawei Technologies Co. Ltd. is threatened by Ottawa’s prolonged decision-making on whether to allow or ban Huawei in Canada’s nascent 5G networks, as well as by inroads made by Nokia and Sweden’s Ericsson AB.

Most Canadian telcos have effectively picked their 5G suppliers.

A senior executive at Rogers Communications Inc. last week called for Ottawa to ban Huawei as a national-security threat and supposed agent of Beijing. But then, a Huawei ban would be to Rogers’ advantage. Its BCE Inc. and Telus Corp. rivals, poised to use longtime supplier Huawei in their 5G upgrades, would be dealt a setback by a Huawei ban. (Rogers has partnered with Ericsson.)

Telus, a vocal defender of Huawei since early this year, noted last week that Ericsson and Nokia, with their own extensive Chinese R&D and parts-assembly operations, are as vulnerable to Beijing meddling as Huawei supposedly is.

It might be best for Ottawa to remain agnostic, as it has done in helping finance Nokia R&D in Canada, and last year creating a 5G R&D coalition that includes Ericsson.

In that context, it makes sense to green light Huawei as well.

Will Indigenous groups control Trans Mountain?

Indigenous groups are ramping up their plans to bid on the Trans Mountain pipeline that carries Alberta oil to the West Coast.

Watch for details of their proposals to emerge soon after Ottawa’s expected June 18 approval of the expansion of the Trans Mountain.

Among the several Indigenous groups bidding on full or part-ownership of the Trans Mountain, now owned by Ottawa, Iron Coalition and Project Reconciliation stand out. Their proposals are hugely ambitious.

There is a precedent: Indigenous investors have purchased a 49-per-cent stake in a Suncor Energy Inc. oilsands storage-tank farm for $503 million.

But Trans Mountain is an investment in the $7-billion range.

The financing is to be achieved with debt backed by pipeline shipping contracts or partnerships with institutional investors.

While the financing is daunting, it’s the size and span of the Indigenous ownership groups that commands attention.

Traditionally, achieving consensus among Indigenous groups has been difficult. And so, Iron Coalition is a breakthrough in its invitation to all Alberta First Nations and Métis communities to join its ownership coalition. So is Project Reconciliation, which seeks participation from as many as 200 First Nations and Métis communities across all of Western Canada.

These nation-building efforts would bind Indigenous prosperity more closely to non-Indigenous economic activity, while achieving unprecedented economic self-sufficiency in First Nations and Métis communities.

Several ownership groups propose using the proceeds of their investments to purchase still more infrastructure projects.

Of course, many Indigenous groups, and not just in B.C., remain adamantly opposed to Trans Mountain. But this movement, of the Indigenous taking meaningful ownership of the land, bears watching for its positive implications for genuine reconciliation.

David Olive is a Toronto-based business columnist for the Star. Follow him on Twitter: @TheGrtRecession

Read More

Leave A Comment

More News


Martha Stewart is partnering with Canopy Growth to 2019-06-18 19:19:05The pot giant announced in February that Stewart, 77, was taking on an advisory role at the cannabis company and would help develop a “broad new

Who said what about the Liberals’ decision to 2019-06-18 19:14:04

Trump’s trade chief vows to work with Democrats 2019-06-18 19:13:05U.S. Trade Rep. Robert Lighthizer said he’s determined to doing “whatever is necessary” to make the deal more enforceable — on

Boeing gets a win on 737 Max with 2019-06-18 19:07:05Boeing used the second session of the Paris Air Show to get on the scoreboard in a big way after getting shut out on Day 1.

Business leaders welcome pipeline approval but fear it 2019-06-18 18:57:37

Trans Mountain pipeline expansion gets second green light 2019-06-18 18:46:01

Martha Stewart offers business advice to cannabis industry 2019-06-18 18:21:03

Business leaders applaud Trans Mountain approval 2019-06-18 18:00:02While debate remains over future demand for Alberta’s heavy crude, most of Canada’s business leaders agree the approval of the Trans Mount

DavidsTea Inc. sales fall $1.5M in first quarter 2019-06-18 17:51:18

Liberals clarify new telecom policy to reflect importance 2019-06-18 17:42:23

TSX has one of its best days of 2019-06-18 17:24:00S&P/TSX inches to within one per cent of record high on rally spurred on by U.S. interest rate cut hopes and possible trade deal between U.S. and

Bank of Canada to review Facebook’s cryptocurrency white 2019-06-18 16:42:27

: Money

Canadian companies avoided up to $11B in taxes 2019-06-18 11:56:51Canadian corporations avoided paying between $9.4 billion and $11.4 billion in taxes in 2014, according to the federal tax agency.

Facebook unveils cryptocurrency plans for 2 billion users 2019-06-18 07:43:23The social network unveiled an ambitious plan Tuesday to create a new digital currency similar to Bitcoin for global use.

There’s a lifestyle penalty for renting in Canada 2019-06-15 06:00:47Canada's deep cultural prejudice against renting has been cemented by decades of housing policies that have made life hard for tenants and landlords.

Why more millennials are refusing to blow the 2019-06-14 11:06:31Some couples are opting to take the "pop-up chapel" route to save money.

Canadian home sales up 6.7% in May, largest 2019-06-14 10:30:08The Canadian Real Estate is upgrading its outlook for 2019, but price growth is still muted in many markets.

4 things many new grads don’t know about 2019-06-14 06:00:22It will soon be time to pay up. Here's what newly-minted grads should know about government and private loans.

Crude oil production to reach 5.86 million barrels 2019-06-13 12:23:04The Canadian Association of Petroleum Producers is projecting Canadian crude oil production will increase by 1.27 million barrels per day to 5.86 mill

Household debt-to-income ratio edges down in the first 2019-06-13 09:48:54But the debt-service ratio was the highest since late 2007.

Protester storms stage at 2019 Global Petroleum Show 2019-06-11 10:03:41A protester who said he does not want the province of Alberta “to be polluted” stormed the stage at the 2019 Global Petroleum Show in Calg

Hudson’s Bay stock jumps after group makes cash 2019-06-10 09:31:55The group, which includes executive chairman Richard Baker, is offering $9.45 per share in cash for the company.

Most boomers likely won’t downsize for another 20 2019-06-08 06:00:21Millennials, who are starting to have children, need more bedrooms. But boomers, who own many of the bigger homes, aren't going anywhere.

Canadian unemployment falls to 5.4% in May — 2019-06-07 09:05:06The economy added 27,700 net new positions in the month, building on record job growth in April.

Canada Business - The

5 Things To Know In Business Today: Canada's 2019-06-17 09:37:12Five years in prison for selling cannabis gummies?Canada’s recently-announced rules on edible marijuana products ban the sale of any product tha

Here’s How Far Millennials Need House Prices To 2019-06-15 13:45:58Good news, frustrated Canadian would-be homebuyers: We now have a target for how much you should wish house prices to fall by: 50 per cent.Unless you&

Montreal's Housing Shortage The Target Of Protesters 2019-06-15 11:29:11MONTREAL — A Montreal-based tenants’ rights group is leading a demonstration this afternoon in the city’s Cote-des-Neiges neighbourh

David Anderson, Former Liberal Environment Minister, Tells Trudeau 2019-06-15 08:26:39VANCOUVER — A former Liberal environment minister is urging Prime Minister Justin Trudeau’s cabinet to reject the Trans Mountain pipeline

Pot Edibles Hitting Shelves By Mid-December, Health Canada 2019-06-14 16:00:52A “limited selection” of next-generation cannabis products such as edibles will “gradually” hit retail shelves no earlier

Bell Fibe TV Goes Down During Raptors-Warriors NBA 2019-06-14 01:03:51Basketball fans who use Bell Fibe TV missed the last minutes of the Toronto Raptors’ historic NBA championship win when the service went dark &m

Oil Lobby Group Chief Hits Out At 'Disrespectful' 2019-06-13 16:56:11CALGARY — The head of the Canadian Association of Petroleum Producers criticized the country’s environment minister Thursday for comments

Justin Trudeau And Donald Trump To Meet In 2019-06-13 13:42:02OTTAWA — Prime Minister Justin Trudeau and U.S. President Donald Trump are to discuss continental trade and their shared challenges with China i

Bell Mobility's Unlimited Wireless Plan Follows In Rogers' 2019-06-13 13:04:46Bell Canada has followed in the footsteps of competitor Rogers and has announced an unlimited wireless data plan ― though Bell’s is a limi

5 Things To Know In Business Today: Someone 2019-06-13 09:54:48Who’s torpedoing oil tankers?Oil prices shot up by around five per cent on global markets Thursday after reports that two oil tankers in the Gul

Netflix Canada Partners With Indigenous Cultural Organizations 2019-06-12 19:16:19The streaming giant revealed partnerships with ImagineNATIVE, the Indigenous Screen Office and Wapikoni Mobile to help amplify underserved voices in C

Rogers Unveils Unlimited Wireless Data Plans ... With 2019-06-12 15:14:46TORONTO — Rogers is making a major shift in its wireless service offerings by introducing unlimited data plans with no overage charges.Canada&rs

CBC | Business News

Oilpatch pushes for construction to start immediately on 2019-06-18 18:41:10The federal cabinet approved the controversial pipeline expansion on Tuesday, but challenges remain before the project, now owned by the Crown, moves

Job vacancies up almost 10% from last year: 2019-06-18 18:26:30Job vacancies rose nearly 10 per cent between the first quarter of 2019 and the first quarter of 2018, a new Statistics Canada report has found.

B.C. premier disappointed by approval of Trans Mountain 2019-06-18 16:49:38John Horgan added that Ottawa has the authority to give the greenlight, and he’ll focus on making sure B.C. can protect its territory from the i

Trudeau cabinet approves Trans Mountain expansion project 2019-06-18 16:44:17Prime Minister Justin Trudeau and his cabinet have again approved the Trans Mountain expansion project, a crucial next step for the much-delayed pipel

Boeing announces 1st sale of 737 Max jets 2019-06-18 12:11:57Boeing is selling its 737 Max planes again. It says International Airlines Group has signed a letter of intent for 200 of the aircraft.

Facebook to launch new cryptocurrency, called Libra 2019-06-18 09:13:58Facebook is unveiling plans to create a new digital currency similar to Bitcoin for global use, one that could drive more e-commerce on its services a

Canadian corporations dodged up to $11B in taxes 2019-06-18 09:07:25Canadian companies avoided paying up to $11.4 billion worth of taxes in 2014, the federal tax agency says.

China to suspend imports from Canadian pork company 2019-06-18 08:09:04China will halt imports from a Canadian company after food safety issues were detected in one batch of pork, the Xinhua state news agency reported Tue

What to watch for in today's cabinet decision 2019-06-18 04:00:00The federal cabinet will decide today on whether to give approvals to the Trans Mountain expansion. The company building the pipeline — now a Cr

B.C. woman still waiting for cleanup of pipeline 2019-06-18 04:00:00With the federal government expected to announce its decision on the Trans Mountain pipeline expansion on Tuesday, Janice Antoine, a resident of the C

Rupture of Thompson's tailing dams could kill nearly 2019-06-17 20:33:14A mining giant reeling from a deadly dam collapse in Brazil says it is investigating one of its dams in Thompson, Man., over fears 

MasterCard launches bid to let transgender people use 2019-06-17 15:38:01MasterCard is working with Canadian banks to issue a new credit card called True Name that will allow transgender people to use their chosen names on

Christian Science Monitor |

Why this company wants your old underwear 2019-06-17 15:52:06Will recycling textiles save the planet? Buying less and wearing your clothes longer might accomplish more.

Farmers caught between a flood and a trade-war 2019-06-17 15:52:06A $19.1 billion disaster aid package won't include much help for Midwestern farmers who can’t plant. Meanwhile a trade war puts farm

Why tariff threat is unsettling – even after 2019-06-17 15:52:06The threat of Mexican tariffs is off for now. But it could return – and the weaponization of tariffs may not be in the long-term interest of the

One group not happy about older workers: young 2019-06-17 15:52:06Americans under 50 believe the rising number of older workers hurts the economy, a recent poll shows. Longer and healthier life spans have allowed mor

Robot baristas in South Korea push automation forward 2019-06-17 15:52:06South Korea's coffee scene has a new face: robotic baristas. While automation raises concerns that finding entry-level jobs will become har

SEC moves to require brokers to reveal conflicts 2019-06-17 15:52:06In the past, not all financial advisers were legally required to put clients' interest first. But some say the new measure by federal regulators does

Medicare for all – why supporters can’t agree 2019-06-17 15:52:06Support for single-payer health care seems to have risen over the past year or so, but such a plan presents complex, and controversial, choices.

Where is workforce really booming? Among the oldest 2019-06-17 15:52:06McDonald’s wants to hire 250,000 senior workers. A CVS program avows that ‘Talent is Ageless.’ And nationwide the ranks of older wor

Car trouble: How symbol of freedom became a 2019-06-17 15:52:06A record 7 million Americans are 90 days or more delinquent on car loans, a new report finds. U.S. auto debt is also at a record: $1.28 tril

Uber’s founders have cashed in. How about the 2019-06-17 15:52:06Uber relies on an army of drivers whom it refuses to call employees. But some see its “Partner Protection” plan as a model for the gig eco

As US-China trade war ramps up, how will 2019-06-17 15:52:06China-made goods will cost Americans more, as President Trump presses Beijing for trade-talk concessions. By July tariffs may hit cellphones, shoes.

Walmart follows Target to enter retail shipping wars 2019-06-17 15:52:06The nation's largest retailer joins the next-day shipping competition. Walmart has one big advantage over Amazon – its more than 4,700 sto

Disclaimer and Notice:WorldProNews.com is not responsible of these news or any information published on this website.