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This company leader is announcing his company is failing in the market and has some huge supply chain issues with no resolution in sight. Just reading between t
by jillesvangurp 4y ago
This company leader is announcing his company is failing in the market and has some huge supply chain issues with no resolution in sight. Just reading between the lines here. There are two explanations for this announcement:
1) he genuinely believes this. I don't believe he's that naive/uninformed/ignorant. But I can't exclude the possibility.
2) more likely: he's managing expectations for shareholders in a market where other manufacturers are growing at the cost of companies like Stellantis that have a big urgent problem in the form of an expensive legacy production capacity. Which while still profitable is heading for a cliff around 2030-2035 time frame latest but probably a lot sooner in most of their markets.
In other words, this is a CEO that is preparing for what is about to be an extended period of regular bad news in the form of unavoidable layoff rounds, plant closures, disappointing quarters, etc. combined with a lot of capital investment that is necessary to stay relevant. All while other companies are breaking records in production volume, profit margins, market expansion, etc. And it's not just Tesla that does that.
Stellantis still makes many billions per year of course but if they fail to invest that properly (as opposed to letting share holders get their dividend), they will start having some issues there pretty soon. I don't think they have until 2035 to figure this out. Doing all that while keeping share holders from rebelling is going to be a key challenge.
- schiffern 4y ago> 1) he genuinely believes this. I don't believe he's that naive/uninformed/ignorant. But I can't exclude the possibility. The entire story is (literally) openly-admitted propaganda from Stellantis. From the article: > The comments from Tavares came during the Freedom of Mobility Forum, a platform the automaker created alongside its decision to leave the European Automobile Manufacturers Association and to change its approach to public affairs and lobbying. ... The hope through the forum is that the debate from views around the world will help to inform and influence public opinion to which lawmakers ultimately are subject. It links to another article[0] which is even more explicit: > the automaker is emphasizing "public affairs" over "pushing an agenda." > "We came to the conclusion that ... it's better to talk to the people, and if the people change their mind, political leaders will align with the people." I'm no PR genius, but it's not hard to figure out what agenda Stellantis is pushing with this new "not pushing an agenda" agenda... [0] https://archive.is/6XXT8 https://archive.is/6XXT8
- ImPostingOnHN 4y agoit kind of is unless you were to make assumptions or use data not presented above what's their "agenda", and how does it differ from the "agenda" of any other car manufacturerer (obviously they all have one and all lobby)
- hedora 4y agoRam is going to be dead last (behind two startups and two incumbents) in the race to making EV trucks. The Fiat 500e was described by their management as a “compliance car”, and it was clear that they had no intention of figuring out how to scale it. In other news, buggy whip manufacturers still decry the environmental impact of carburetor manufacturing.
- ImPostingOnHN 4y agoI understand now, thank you