… and going forward, new technological challenges will continue to raise the bar on capital requirements “Everyone is entitled to his own opinion, but not to his own facts.” - Daniel Patrick Moynihan, (Former US Senator and Ambassador to the UN)Īuto industry’s capex and R&D requirements have grown significantly over the past years… It is about choosing between mediocrity or fundamentally changing the paradigm for the industryīefore we get into this, we should be reminded that….Dispassionate look at the industry from the outside using insider knowledge.A revision to our 5 year plan (which remains a firm commitment).An excuse for FCA’s current ranking in the automotive food chain.Consolidation is the key to remedying the problem.Industry has not earned its cost of capital over a cycle.Goal is to provide clarity on two issues that have been raised publicly by FCA.… and some OEMs are trying larger scale commonization across diverse brands…įiat Chrysler Automobiles – Purpose of the pitch One industry solution focuses on reducing the number of active platforms and increasing scale … Why did this happen? OEMs spend vast amounts of capital to develop proprietary components, many not really discernible to customers … resulting in structurally low and volatile returns … and high operational leverage amplifies profitability swings across the cycle … Product development costs are consuming value at a much faster rate than in other industries …
Before we get into this, we should be reminded that… Fiat Chrysler Automobiles – Purpose of the pitch
0 kommentar(er)
