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The article offers a look into the breakup of multinational conglomerate company General Electric Co. (GE) into GE HealthCare Technologies Inc. and GE Vernova, a stand alone electric-grid, gas-power and wind-turbine business. It highlights the divestment strategy of GE Chief Executive Officer Larry Culp to manage the company's debts. It informs about the debt problem faced by GE Capital and the sale of GE's biopharmaceutical unit to Danaher Corp. and aircraft leasing unit to AerCap Holdings NV.

The article explores the factors that contributed to the successful breakup of wind turbines manufacturer General Electric (GE) into three separate companies under the leadership of chief executive officer (CEO) Larry Culp. Topics discussed include the leadership and strategic vision of Culp, strategic divestments and restructuring efforts of GE, and successful spin-offs and the emergence of three new companies.

The National Highway Traffic Safety Administration (NHTSA) in the US has initiated a preliminary investigation into electric vehicles produced by VinFast Auto Ltd., a Vietnamese company, due to a reported safety issue. The investigation focuses on approximately 3,118 vehicles manufactured between 2023 and 2024, following complaints from 14 owners regarding problems with the Lane Keep Assist system. The NHTSA stated that the system allegedly struggles to detect lanes, provides incorrect steering inputs, and is challenging for drivers to override. VinFast has expressed its willingness to cooperate with the NHTSA and maintains that its vehicles are safe, while the NHTSA has not yet found evidence linking the reported malfunction to any accidents. [Extracted from the article]

Boeing must meet certain quality control metrics before the US Federal Aviation Administration (FAA) will allow the company to increase production rates and lift output limits on its 737 Max jetliner. The FAA imposed production limits on Boeing's 737 Max after a manufacturing incident earlier this year. Boeing has implemented an action plan to address the issue, which includes providing the FAA with real-time performance indicators. The FAA has increased oversight of Boeing and has not yet indicated when the production cap will be lifted. [Extracted from the article]

Carrier Global Corp. has agreed to sell its commercial and residential fire unit to Lone Star Funds for $3 billion. This sale is part of Carrier's strategy to focus on its core heating and cooling equipment businesses. The divestitures, including the sale of its industrial fire business and building security business, have a combined value of about $10 billion. Carrier has also reduced its net debt by over $5 billion through the repayment of outstanding loans and notes. In addition to divestitures, Carrier has been acquiring companies to strengthen its core business, such as the acquisition of Germany's Viessmann Climate Solutions. [Extracted from the article]

(Bloomberg) -- Carrier Global Corp. agreed to sell its commercial and residential fire unit to an affiliate of private equity firm Lone Star Funds for an enterprise value of $3 billion.The sale is the latest in a series of divestitures by Carrier under Chief Executive Officer Dave Gitlin to focus on its core heating and cooling equipment businesses. The deal is expected to close by the end of this year, the company said in a statement Thursday.©2024 Bloomberg L.P.By Ryan BeeneReported by Author [Extracted from the article]

Boeing has resumed deliveries of its 737 Max aircraft to airlines in China after a two-month pause imposed by Chinese aviation regulators. This move is expected to provide some relief to Boeing's strained finances, as the Chinese market is a significant one for the company. The resumption of deliveries comes after China suspended acceptance of US-made jets in 2019 following two fatal crashes involving the 737 Max. This is seen as a positive development for Boeing, which has been dealing with leadership upheaval and production slowdowns due to safety concerns. [Extracted from the article]

Boeing has resumed delivering its 737 Max aircraft to airlines in China after a two-month pause. The pause was imposed by Chinese aviation regulators to review information about batteries used in cockpit voice recorders. This resumption is a positive development for Boeing, as it will help alleviate some of the financial pressure the company is facing. Boeing shares remained relatively unchanged after the announcement. [Extracted from the article]

Southwest Airlines has implemented a shareholder rights plan, commonly known as a "poison pill," in response to activist firm Elliott Investment Management's push for leadership changes and business revamp. The plan aims to prevent Elliott from gaining control of the airline without compensating other shareholders. Southwest stated that Elliott had acquired an economic interest of approximately 11% in the company but had not disclosed its full position. The rights plan allows shareholders to purchase additional Southwest shares at a discounted price if a shareholder or group accumulates 12.5% or more of the company's common stock. Southwest's shares have dropped 24% in the past year, and the company is facing criticism over its financial performance and corporate culture. [Extracted from the article]

General Electric Co. has extended the contract of CEO Larry Culp through at least 2027, making him unavailable as a potential candidate for the CEO position at Boeing. Culp's contract could be extended until 2028 if agreed upon by him and the board. This extension comes after Culp successfully led a turnaround of General Electric, resulting in the spinoff of its energy-related businesses and leaving GE Aerospace as the remaining company. Other executives, including American Airlines Group Inc. Chairman Greg Smith and Carrier Global Corp. CEO Dave Gitlin, have also removed themselves from consideration for the Boeing CEO position. The potential complications of a three-way deal involving Spirit AeroSystems Holdings Inc. and the candidacy of Pat Shanahan, CEO of the supplier, are also discussed. [Extracted from the article]

General Electric (GE) has extended the contract of CEO Larry Culp through at least 2027, making him unavailable as a potential candidate for the CEO position at Boeing. Culp's contract could be extended until 2028 if agreed upon by him and the board. Culp has been credited with leading a successful turnaround of GE, including the spinoff of its energy-related businesses, leaving GE Aerospace as the remaining company. Culp has expressed his intention to remain at GE Aerospace, and GE's stock has performed well this year. [Extracted from the article]

General Electric Co. burned more cash than analysts expected in the first quarter, crimping Chief Executive Officer Larry Culp's turnaround push after recent signs of financial improvement. Cash use by [...]

The article reports on the plan of Airbus SE to build a stretched version of its smaller A220 jet that will accommodate about the same number of passengers as its A320 but with better fuel economy and modern design specifications. Topics include Airbus' opportunity to take market share from its A220-500 models as Boeing Co. has no plan of building an all new jet model for the rest of the decade and the interest of airlines such as Air France and KLM in the larger version of A220.

JetBlue Airways Corp. has agreed to give activist investor Carl Icahn two board seats, avoiding a potential proxy fight. Icahn recently revealed a nearly 10% stake in the airline and called the shares undervalued. The addition of Icahn's representatives to the board puts a spotlight on new CEO Joanna Geraghty, who took over on the same day Icahn's stake was announced. JetBlue is already working to cut costs and return to profitability after a federal judge blocked its planned takeover of Spirit Airlines Inc. [Extracted from the article]

Byline: Ryan Beene The EPA's crack-down on emissions malfeasance has thrown the U.S. diesel vehicle market into disarray. With the 2017 model year well underway, Jaguar is the only brand [...]

Byline: Ryan Beene Printed in Automotive News April 25, 2016 SHEEHY AUTO STORES, FAIRFAX, VA. It's not uncommon to see a couple of wheels sitting along the side of the [...]

Byline: Ryan Beene Even in the heart of the world's largest diesel market, the future of the fuel looks clouded. At the Paris auto show, senior auto executives expect the [...]

Byline: Ryan Beene Audi aims to retain its leadership position in luxury crossovers with a second-generation Q5 that adds size, technology and power to the outgoing model. The redesigned Q5 [...]

Southwest Airlines has lowered its revenue outlook for the second quarter, citing challenges in adapting its revenue management to current booking patterns. This reduction comes as the airline faces pressure from activist investors, including Elliott Investment Management, who have called for new leadership. Despite record levels of demand, domestic travel growth in the US is slowing, leading carriers to scale back plans for increased flying and offer discounts to attract customers. Southwest has already begun reevaluating aspects of its business model to better meet the needs of today's customers. [Extracted from the article]

Southwest Airlines has lowered its estimate for unit revenue in the second quarter, citing challenges in adapting its revenue management to current booking patterns. The airline now expects revenue per available seat mile to fall by up to 4.5%, compared to its previous estimate of no more than a 3.5% decline. This reduction comes as Southwest CEO Bob Jordan faces pressure from activist investors, including Elliott Investment Management, for new leadership. Despite record levels of demand, domestic travel growth in the US is slowing, leading airlines to scale back plans for increased flying and offer discounts to attract customers. [Extracted from the article]

Elon Musk mentioned during Tesla's annual meeting that former President Donald Trump is a fan of the company's Cybertruck and calls him often. Despite their differing views on electric vehicles, Musk and Trump have grown closer recently, with Musk advising Trump on cryptocurrency policy. Musk also discussed his health and safety during the meeting, acknowledging the need to take care of himself for the future of the company. [Extracted from the article]

The US Federal Aviation Administration is investigating claims that pilot trainees for Cathay Pacific Airways at a US flight school were involved in training mishaps that were not properly reported. Phoenix-based AeroGuard Flight Training Center has suspended all solo flights for Cathay cadets due to incidents that damaged planes and were not reported by the trainee aircrew. Cathay has acknowledged the incidents and supports the decision of the flight school. [Extracted from the article]

Moody's Ratings has downgraded Boeing Co.'s credit score to one notch above junk status due to quality-control issues affecting the company's free cash flow. The downgrade reflects the underperformance of Boeing's commercial airplanes segment, which has hindered the generation of free cash flow. Boeing burned through $3.9 billion of cash in the first quarter and is expected to use more cash in the current period. Moody's predicts that headwinds related to the segment will persist until at least 2026, and Boeing may need to issue new debt to fund its shortfalls. Despite these challenges, Boeing's CEO remains confident in the company's ability to generate $10 billion in free cash flow by 2025 or 2026. [Extracted from the article]

Flights at major New York City airports were temporarily disrupted after a 4.8 magnitude earthquake shook buildings in the area. Operations were briefly paused at John F. Kennedy International Airport and inbound flights at Newark Liberty International Airport were halted, but both airports have since resumed normal operations. The US Federal Aviation Administration warned of delays for flights headed to Newark. United Airlines, Delta Air Lines, and JetBlue Airways reported minimal disruptions and no injuries to airport employees. [Extracted from the article]

The US Federal Aviation Administration (FAA) has temporarily halted flights at John F. Kennedy International Airport and Newark Liberty International Airport in New York City due to a 4.8 magnitude earthquake that shook the region. The FAA stated that air traffic in New York, New Jersey, Philadelphia, and Baltimore may be affected. The agency is working to resume air traffic operations as quickly as possible. The earthquake, which occurred in northern New Jersey, caused buildings to shake in Manhattan and was felt in Long Island and New York's Hudson Valley. [Extracted from the article]

A preliminary report by US safety investigators suggests that a United Airlines aircraft skidded off a runway in Houston due to the pilot deviating from the carrier's landing procedures in slippery conditions. The captain of the Boeing 737 Max lowered the plane's autobraking system to a level that provided less stopping power than recommended by United for wet and slippery landings. The captain believed the runway was dry, while the first officer thought it was wet. The incident is being investigated, and United is cooperating with authorities. This incident is one of several safety concerns involving United Airlines recently, and the FAA is considering actions that could restrict the carrier's growth. [Extracted from the article]

Byline: Ryan Beene During an otherwise routine congressional hearing last week, Texas Republican Joe Barton let slip how he really felt about the Obama administration's signature fuel economy program. 'I [...]

Byline: Ryan Beene For the first time, the auto industry has a clear path ahead of it for the development and deployment of self-driving cars. But federal regulators will be [...]

Byline: Ryan Beene These days, Volkswagen executives talk more about winning back trust than market share. It has been that way ever since the diesel emissions scandal cast the brand [...]

Byline: Ryan Beene The federal indictment of a Volkswagen engineer -- and his agreement to cooperate with prosecutors under a plea deal -- could finally unravel the mystery of how [...]

Byline: Ryan Beene For most of its 24 months in the U.S., the Audi Q3 has been an odd duck. Despite being a new entry from a hot brand in [...]

Byline: Ryan Beene Automakers would be required to notify owners of vehicle recalls electronically through emails, text messages or other digital tools under a rule change proposed by U.S. auto [...]

Byline: Ryan Beene At first glance, it mostly looks like business as usual for product launches at Volkswagen Group through the end of the decade. But look a little deeper [...]

Byline: Ryan Beene Despite the seemingly all-consuming scope of the diesel emissions scandal, the Volkswagen Group's wheels are still turning in Wolfsburg, Ingolstadt and Stuttgart. A major electrification push calls [...]

Byline: Ryan Beene A duo of key crossovers arriving in 2017 will headline one of Volks-wagen's busiest years in some time. After that, things get murkier, with questions clouding the [...]

Byline: Ryan Beene Fast, sporty small cars and fresh new sedans will define the next several years of Audi's product plan, along with a push toward electrified powertrains that will [...]

Byline: Ryan Beene It has officially begun: The process that will shape the powertrains and fuel efficiency of U.S. autos through 2025 kicked off last week with the release of [...]

Byline: Ryan Beene Automakers worried about the cost of meeting fuel economy targets are waking up to a startling new reality: The cost of not meeting them is about to [...]

Byline: Ryan Beene Samantha Jacobson -- AGE: 32 -- POSITION: Director of marketing, Warren Henry Automotive Group -- ACHIEVEMENT: Launched Via Luxury Rentals, an affiliate that handles service loaners and [...]

Byline: Ryan Beene Tesla Motors, the trailblazing electric-car company, is leading the National Highway Traffic Safety Administration into uncharted territory as well. The agency's investigation into the fatal crash of [...]

Byline: Ryan Beene Volkswagen of America posted its lowest June sales since 2011 while luxury sibling Audi notched another monthly record on surging crossover sales. VW-brand deliveries fell 22 percent [...]

Byline: Ryan Beene The hundreds of frustrated Volkswagen dealers who turned up at the National Automobile Dealers Association convention in March in Las Vegas faced a difficult decision. Charge ahead [...]

Byline: Ryan Beene Within 100 miles of Sacramento, Calif., more than 1,400 new electric and plug-in hybrid vehicles are available for sale. It's a different story in Boston, where fewer [...]

Byline: Ryan Beene Volkswagen of America is dropping the Jetta Hybrid for 2017, ending a run of four model years for the lone hybrid in its U.S. lineup. The hybrid [...]

Byline: Ryan Beene The National Automobile Dealers Association cheered a U.S. Supreme Court decision challenging a Labor Department ruling that sought to make dealership service advisers eligible for overtime pay. [...]

Byline: Ryan Beene The Insurance Institute for Highway Safety is using its powerful megaphone to send a message to automakers: Don't slack off on passenger-side safety. A fresh round of [...]

Byline: Ryan Beene What qualifies as a safety-related communication? Well, here's what doesn't qualify: traffic alerts, parking-spot beacons, advertising and social-media messages. That much was made clear in a blog [...]

Byline: Ryan Beene Last year, in its first year in business, Audi Devon sold 1,032 new vehicles from its gleaming, 55,000-square-foot store in this tony Philadelphia suburb. That volume was [...]

Byline: Ryan Beene Audi's next-generation A8 sedan, spotted by spy photographers in Europe, shows how design elements from the brand's Prologue series of concept cars will appear on production models. [...]