What will the bailout package look like this time? Can the administration bailout the ICE business and have any credibility on climate action? Just doling out $12.5k on union-made EVs will not solve this hot mess.
It is just sad to read
this and I should make a reaction video, but will rage post here instead
What GM says -"General Motors Co. (NYSE: GM) dealers delivered 446,997 vehicles in the U.S. in the third quarter of 2021, down 218,195 units from a year ago as a result of semiconductor supply chain disruptions and historically low inventories"
What is most likely happening - The GM lineup is unattractive at current prices due to lower value compared to used vehicles. The chip shortage is only due to GM's inability to innovate at appropriate engineering levels required to be agile enough to overcome these supply chain issues, which are pretty massive, but nonetheless, it can be solved better by companies who know how to do appropriate levels of engineering.
What GM says - "...with most of the impact occurring during the third quarter."
What is most likely happening - Demand usually increases in Q4 vs Q3 seasonally and they hope they can recover demand at prices which allow them to remain solvent. Too much debt, not enough free cash flow, not enough operating margin, not able to make debt payments, not able to make payroll,
@jhm hot mess.
What GM says - "GM’s financial outlook is still expected to be within the calendar year guidance range previously provided as the company continues to develop solutions to mitigate the impacts of the semiconductor shortage and Chevrolet Bolt EV recall."
What is actually happening - GM is forcing LG, under contract, to design and implement ECOs which fully mitigate issues seen in the field which have resulted in the recall of every, EVERY, yes every Bolt made. LG does the engineering, implementation and manages production of their, yes their, drivetrain. My prediction is that GM and LG both knew about these issues prior to releasing these vehicles to be salable and an eventual whistleblower will come forward with appropriate documentation. Why? The issue is so easily reproducible, ubiquitous and so severe from an engineering perspective.
What GM says - "GM has been agile and decisive in managing COVID-related impacts..."
What is most likely happening - They are doing the least they possibly can to implement solutions to mitigate impacts. They know Biden will bail them out and they know the writing is on the wall (aka hot mess). If they *were* being agile, they would have hired engineers to combat the chip shortage; full stop. I see no evidence of hiring FW engineers or board designers. But I doubt they even know those disciplines. But all you have to do is look on LinkedIn to see how many Tesla employs.
What GM says - The rest is how great their ICE business is doing (spin) and how they will eventually make EVs
What is actually happening - Demand is falling for their legacy products which cannot be made a profit due to lack of innovation at the engineering level. No amount of marketing can overcome this inevitable conclusion. Their EVs are nothing but a 1st party badge on a 3rd party drivetrain. It is NOT engineering innovation. Sandy demonstrates this on every teardown he does. And even though he doesn't have the personell to teardown to the FW, BIOS or low level SW/Service/API stack it is obvious to me there has been ZERO innovation at those levels. Anyone who tells you differently is trying to sell you legacy ICE designed BEV.
teslamotorsclub.com
ir.tesla.com
