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Nikola Is Collapsing Under The Pressure

Discussion in 'Rumors and General Chrysler Discussion' started by tabutler, Sep 14, 2020.

  1. tabutler

    tabutler Active Member

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  2. Stéphane Dumas

    Stéphane Dumas Well-Known Member

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    In another thread, I mentionned then I underestimated Mary Berra with GM getting a stake of Nikola. I guess I stand corrected and FCA/PSA/Stellantis might have dodged a bullet.
     
  3. tabutler

    tabutler Active Member

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    Agreed FCA dodged a bullet on this one. It sounds like Nikola is all vaporware.
     
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  4. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    I'm in the same boat with you...and also stand corrected.

    ? Remember the old expression about Karma ?

    I'm delighted to see that Karma is doing its thing...and dishing out everything Nikola and Trevor Milton so richly deserve.
     
    Stéphane Dumas likes this.
  5. Stéphane Dumas

    Stéphane Dumas Well-Known Member

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    Oh yeah, Karma bites back and it bites hard, very hard.
     
  6. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    I'll be the first one to admit that I've never really paid much attention to the world of style and fashion...but...

    I think Trevor Milton would look absolutely STUNNING wearing 'Prison Orange':p:D
     
    Stéphane Dumas likes this.
  7. Chrysler UK

    Chrysler UK Member

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    Makes you wonder how much due diligence GM actually did before they got involved with Nikola. Then again we are talking about a company that clearly feels that a "shrink to profitability" strategy makes more sense than actually merging with another carmaker.

    Especially when one looks at the long-term outlook.
     
  8. Stéphane Dumas

    Stéphane Dumas Well-Known Member

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    As long as he don't drop the soap. :D
     
  9. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    I think it would be useful to make a distinction between GM's vetting of 'the deal', vs. GM's vetting of Nikola / Trevor Milton. I think there IS a difference.

    'The Deal' itself was such a no-brainer in that GM has nothing to lose in this. GM parts with no money...AND...for all intents and purposes, turns Nikola into an exclusive customer of GM for whatever hardware they're going to need going forward. And...of course...there was that free gift of 11% equity in Nikola Motors now in the hands of GM, to do with whatever it wishes.

    I'm also convinced that GM did all the proper vetting of Nikola / Trevor Milton......and......CYNICALLY decided to go ahead with the deal anyway in spite of any 'red warning flags' they may have had......the rationale being that if the Nikola 'ship' sinks to the bottom of the ocean...THEY (GM) will remain afloat without a care in the world about anything having to do with Nikola.

    I put absolutely nothing past GM when it comes to the cold, ruthless manner in which they conduct their affairs!

    To paraphrase an old American expression: It's no skin off GM's nose.
     
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  10. tabutler

    tabutler Active Member

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    The deal GM put together puts GM in the catbird seat. Since is appears Nikola's technology is vaporware it allows GM to leverage their new BEV platform and increase the volume in the Detroit-Hamtramck spreading the cost to Nikola. I’m sure the volume will be small for the Badger. When Nikola management fails GM can grab a new BEV division on the cheap to compete with Tesla and Rivian.

    I don’t think this deal could have been viable for FCA. At this point FCA doesn’t have a dedicated BEV platform or the NA manufacturing plant to build it.
     
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  11. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    Thank God for small favors!

    But...Don't forget. FCA's sister EXOR company IVECO is still mixed up in this thing.o_O:eek:
     
  12. Chrysler UK

    Chrysler UK Member

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    While I agree that General Motors paid nothing for their stake in Nikola and will lose nothing from the possible demise of Nikola, it still doesn't make any sense to why GM would waste time getting involved with a company that is going nowhere.

    Especially when that time could have been spent looking at potential merger partners instead (such as Volkswagen or even Stellantis themselves), which is pretty important considering that their "shrink until they are profitable" strategy* has led to a siutation where they are now too small to properly compete in the long-term.

    So while GM might be willing to make tough decisions, their problem is that they are making the wrong kind of tough decisions...

    *I get that GM was losing money in Europe, South Africa, Australia & India. But instead of completely abandoning those markets, they should have merged with another carmaker to solve that problem.
     
  13. Chrysler UK

    Chrysler UK Member

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    Is there anything for GM to grab off Nikola though?
     
  14. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    I think one of the big motivating factors for GM deciding to foolishly / cynically jump into bed with Nikola Motors has to do with the 'intangibles'.

    At least in North America, anyway...General Motors has gained an image / perception as a company stuck in the past....slow to innovate....unable or unwilling to change with the times...poorly managed...and...a reputation for turning out products of poor quality. For a lot of folks, GM represents everything they think is wrong with today's automotive industry. TESLA...on the other hand...is perceived as representing everything that GM is NOT!.

    For lack of a better term, GM was looking for some of the 'cool-ness' factor that TESLA has in abundance.

    As for the prospect of GM merging with Stell/\ntis...the very idea would probably cause an epidemic of heart attacks and strokes among members of the GM board.;)

    P.S. Among the list of countries from which GM has retreated, I'm pretty sure Russia is also part of that list.
     
  15. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    When Nikola Motors fails...which is now highly likely...GM could sweep in like a Vulture / Buzzard, and pick off what's left from the dead rotting Nikola carcass...and reorganize it into an all-EV division for General Motors...which...in turn...could be spun-off to help "unlock value" for GM share holders.
     
  16. tabutler

    tabutler Active Member

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  17. tabutler

    tabutler Active Member

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    It sounds like is CNH actually building the truck and just marketing through Nikola. I'm guessing it is all CNH technology.
     
    77 Monaco Brougham likes this.
  18. Chrysler UK

    Chrysler UK Member

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    If we are talking about the share price, we are dealing with a stock market that values Tesla more than the combined market value of Toyota, Volkswagen, General Motors, FCA & Damiler combined. Despite the fact that Tesla's annual sales last year where around 15% of Mercedes-Benz's annual sales alone, it has never made a profit in its entire history and its founder & CEO has a proven track record of treating shareholders with a huge amount of comtempt.

    And while I do agree that it does currently have a dominant market position in the only part of the car industry that actually has a future, that position will likely ebb away as other carmakers eventually get around to having a more widespead BEV Automobile Range.

    Regardless its clear that General Motors needs to get a better marketing department; because while that above descrption might apply to GM in the past, its less relevant in 2020.

    The only way General Motors can get anything like a "cool factor" on its own is by producing more vehicles like the GMC Hummer EV, for example say a BEV version of the Escalade.

    And once they fully recover, perhaps they might finally realise that a merger with Stellantis might actually make sense. Especially when GM cannot rely on North America, Latin America & the Middle East alone, moreso when their future in China is looking uncertain for geopoltical reasons.

    While GM has stopped making cars in Russia itself, they do still import a fair few Chevrolet & Cadillac SUV's into Russia such as the Escalade.

     
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  19. Chrysler UK

    Chrysler UK Member

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    So basically they obtain a brand that is already a joke and do so as part of a plan* that makes absolutely no sense whatsoever in both a financial & technical standpoint.

    *I am aware that companies like GM are resentful at how Tesla is able to raise new capital towards EV related projects. Regardless if they are that desperate to do the exact same thing themsevles, they are better off lobbying Congress instead.
     
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  20. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    I think 'resentful' is putting it quite mildly. How about something closer to 'bitter' or 'furious'.;)

    It's already been suggested by some members of the financial press in New York that it would be a great idea if GM were to spin-off it's EV holdings into a separate company...much the same way FCA did with Ferrari.

    I don't think they would actually do it, but I'm sure their financial people must be at least looking at the idea.
     

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