Here's something short and random, since the petrol price hike, credit issues, recession etc. With the Detroit 2.5 catching all headlines (negative stuffs mostly), announcing factory shut downs, layoffs etc. There's a whole list of bad news from other manufacturers as well:
Toyota making its first lost in 71 years since founding the company in 1937 (It sounds like a positive news as well)
Honda withdrawing from F1, canceling huge events
Audi withdrawing from ALMS
Subaru withdrawing from WRC
Land Rover canceling G4 Challenge
Ferrari layoffs
Bentley layoffs
However, Alfa Romeo, Renault and Peugeot has been eerily quiet. Not that we want to hear bad news from them, however, its clear that manufacturers that enjoyed earning $$$$ blindingly by expanding and expanding into the US markets get hit most.
This reminded us of our previous post about Ferrari California and Ferrari's future.
What is actually the long term goals of automotive manufacturers, or any business? If all CEO's are there just to achieved the sales targets set by directors and chairman, exploring new markets, filling in new niches, creating new segments, all because they wanted a fatter bonus at the end of the day, and providing the riches and splendors of life for their shareholders, so that they can splurge on luxury yachts, or pink colored Bentleys. And?
Aiming for MONEY alone as a business entity should be handled with care, if the expansion of business involves building new factories, hiring more people, and then when business falls ever more so slightly, they cut production and layoff workers, is it ethical? Is that what every business aims to be 'achieving'?
What is tens of billions for shareholders compared to the long term sustainability of the company?
Wednesday, December 24, 2008
Subscribe to:
Post Comments (Atom)
