It’s a “capital junkie” that’s been on a yearslong binge of unprecedented spending on all-electric and autonomous vehicles.
Capital junkieThe latest cost-cutting cycle comes nearly a decade after an infamous Wall Street presentation by late-Fiat Chrysler CEO Sergio Marchionne called “Confessions of a Capital Junkie.” The April 2015 report highlighted the industry’s massive capital spending on overlapping or niche products that Marchionne was convinced could be solved through consolidation and shared capital spending.
That’s shareholder money.”Most capital spending by automakers isn’t wasted, but the industry isn’t as efficient as other sectors, with minimal return on invested capital.
While losing ground in China, GM has been among the most aggressive in spending on EVs and self-driving vehicles.
GM and Hyundai this summer entered into an agreement to explore “future collaboration across key strategic areas” in an effort to reduce capital spending and increase efficiencies.
Persons:
” that’s, bender, ” Morgan Stanley, Adam Jonas, It’s, Sergio Marchionne, Marchionne, ” Jonas, Sergio, Joe Hinrichs, ”, Hinrichs, isn’t, “ We’ve, Rebecca Evans, Roland Berger, “, Ford, Peter Rawlinson, “ We’re, Oliver Blume, ” Blume, Paul Jacobson, ” Jacobson, Rivian, ” Marchionne, don’t, codevelop, Stellantis, —, Carlos Tavares, Bernstein, Daniel Roeska, Tavares, ” Tavares
Organizations:
DETROIT, General Motors, Ford, Nissan Motor, Volkswagen Group, Chrysler, Companies, Research, GM, Volkswagen, Toyota Motor, Fiat, Rivian, Lucid, Fiat Chrysler, Rivian Automotive, Hyundai Motor, Toyota, CSX, ”, Rehab, Nissan, EV, CNBC, VW, Reuters, Honda, BMW, SAIC, Barclays, Saudi, Public Investment Fund, Hyundai, Detroit, French, PSA Groupe, PSA, “
Locations:
Detroit, Japan, Germany, That’s, Europe, China, U.S, North America