Fat fiscal surplus will eventually weaken Germany

Dangerous prudence

Reuters

Volkswagen weakened by chairman's grumbling

Family affair

France becomes Renault activist - to stop activism

An unlikely activist

Hefty German wage hikes make ECB's life easier

Cheers to the German consumer

VW's stingy dividend may presage more M&AVolkswagen may be filling up its tank for another big acquisition. Despite a 20 per cent dividend increase on Thursday, the world's second-largest automaker's payout to shareholders still looks parsimonious.At the end of 2014, the Wolfsburg-based motor manufacturer's net cash position had swollen by five per cent to ^17.6 billion. And that was after spending ^6.5 billion buying out minority shareholders in truck maker Scania and ^2.3 billion strengthening the equity position of its financial service arm. With sales rising and profitability on the mend, analysts expect cash generation to remain strong.The dividend increase roughly matches the rise in earnings per share and sees it handing over a measly 21.2 per cent of last year's EPS. Volkswagen itself has promised shareholders a 30 per cent distribution ratio in the medium term.Elsewhere, hoarding of this sort might lead activist investors to push for a higher payout, as a group of hedge fu

Tank account

Germany's problem banks are running out of friends

Cease of Westphalia

Dividend shocker puts Lufthansa aerobatics to test

Bumpy flight

Greek wordplay paves way for bigger U-turn

Greeks bearing shifts

More Porsche than Prada: Why Ferrari's worth $7 bn

Slow down

Volkswagen can turn investors roundVolkswagen can improve its strained relationship with investors in 2015. Europe's largest carmaker is on course to cut costs and boost sales. If Chairman Ferdinand Piech throws in higher payouts too, the valuation gap with glitzier German rivals should narrow.In recent years, shareholders' trust has been eroded by the expensive takeovers of truckmakers MAN and Scania, slipping profit margins at the core VW brand, and US setbacks.The ride could get less bumpy. Better than expected third-quarter profit could presage a broader rebound in 2015. The high-margin Audi and Porsche marques are thriving, while Volkswagen's dominance in China is the envy of the industry.Moreover, Chief Executive Martin Winterkorn insists he's done with big M&A and is now prioritising profit. Plans to cut annual costs by up to euro 10 billion should start to bear fruit. There will be quick wins like pruning an unwieldy range of 300 models, while desirable new cars such as the

Up a gear

Greece tries risky step to dispel uncertainty

Fireman Samaras

GM plant closure flags Europe's wider car crash

Factory flaws

Big T's fall

Ferrari spin-off looks great but lacks oomphFerrari's spin-off looks great but lacks oomph. Fiat Chrysler Automobile wants to sell 10 per cent of the hottest name in sports cars to new investors and hand its remaining 80 per cent stake to shareholders. This plan, plus decent results and a clever convertible bond, were enough to lift Fiat's market cap by about 13 per cent, or $1.5 billion, on October 29. That seems excessive. This has mostly symbolic value and will not do much for Fiat's fundamentals.The spin-off bandwagon is getting crowded. Blue chips from P&G to Bayer and eBay are handing businesses to investors, hoping to improve their focus and win higher valuations. Here Chief Executive Sergio Marchionne's scheme serves to highlight the power of Fiat's best brand. With its top-end supercars fetching euro 1 million each, Ferrari generates 12 per cent of Fiat's total earnings before interest and tax, on less than three per cent of revenue.Assuming Ferrari can lift operating marg

Driving emotions

Most of the heavy lifting lies ahead for Volvo

Uphill drive

ABB's $4-billion buyback camouflages still-tough future

Swiss reprieve

Back to the future

Uber über alles

French carmaker teaches world about cheap autos

Cheap wheels

Metalworkers, not McKinsey, bend VW to their will

Wolfsburg castle

Europe challenged by inadequate private investment

Olaf Storbeck