RE: Black friday30 Nov 2024 11:01
Instead of all the criticising,infighting,name calling et al.We all(l trust) want success for this share and a profit on our various levels of investment.However instead of all the barbs and accusations bandied about on what used to be a rather sensible board the decision to sell or retain our shares is ours and ours alone.Do not blame someone else because of what they believe or posted as that is their opinion and theirs alone.Make up your own mind based on your circumstances,knowledge and beliefs about SEE.I would suggest everyone read the following from the Economist:-
Car dashboards have an array of indicators that illuminate to warn of trouble. If the boardrooms of Europe’s carmakers had similar systems they would be lit up like a Christmas market. Volkswagen (VW), the largest of the lot by sales, is bracing for strikes beginning on December 1st in response to its plan to close three factories in Germany and cut wages. Northvolt, a once-promising Swedish battery startup in which VW and BMW invested, has collapsed into bankruptcy. Meanwhile, across the Atlantic, Donald Trump is threatening to upend supply chains by imposing a 25% tariff on imports from Mexico and Canada.
These troubles come amid an already difficult year for Europe’s auto industry. Since April the combined market value of the continent’s five biggest carmakers by sales—VW, Stellantis, Renault, BMW and Mercedes—has plunged from more than €300bn ($320bn) to below €200bn, as a string of gloomy profit forecasts has spooked investors (see chart). In Europe demand has shrunk and competition is intensifying from Chinese electric-vehicle (EV) firms. “The pie has become smaller, and we have more guests at the table,” Oliver Blume, vw’s boss, has said. At the same time, the overseas businesses of European carmakers have hit a pothole. Sales in China have slumped, and profits in America are under threat, too. Philippe Houchois of Jefferies, a bank, describes it as “a downturn like no other”. Yet efforts to slash costs at home to stay competitive are hitting stiff resistance from unions and politicians. Not long ago European carmakers were on a tear. A shortage of microchips during the pandemic helped them pursue a strategy of “value over volume”, as they prioritised putting scarce chips into their most profitable vehicles. VW broke its record for operating profit each year from 2021 to 2023. Stellantis (whose largest shareholder, Exor, is a part-owner of The Economist’s parent company) generated its highest-ever revenue and profit in 2023. BMW and Mercedes also enjoyed bumper years. A restructuring programme at Renault also began to pay off.
Lately, however, the picture has darkened. Demand for cars in Europe has stalled and may be headed for structural decline. Europe will never return to its pre-pandemic heights of 16m sales a year, concedes Arno Antlitz, vw’s chief financial officer//There is more to be read of this article on the Economist website
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