I would rather not try to predict what is going to happen to the market in Europe, because until we get next week’s Brexit votes out of the way nothing is going to happen over here that is predictable. So I thought I would concentrate on what was happening as far as the US market was concerned, as many of you may not get the chance to read that publications like the Wall Street Journal.
They are reporting today that Tesla has reached a deal with lenders in China. And it is quite a deal, a bit of a snub to Pres. Trump and one that signals how much they going to put into the Chinese market. $521 million. It is called the Giga Factory and for good reason. Now we know that the company have been ambitious before, but they are targeting 10,000 vehicles a week, or half a million vehicles a year, out of this operation. Not for the faint-hearted.
If the Americans thought they had enough choice, one major manufacturer does not think so and they are heading back into the market. The PSA group this week announced that after three decades away they are returning stateside. One of the most improved manufacturers in the world over the past 10 years, they are seeing this as crucial to their future development. They have spent the past three years remodeling and reengineering their vehicles to suit the US and Canadian markets.
Rounding up the big US stories of the week, something that we would give our right arm for over here – Fiat Chrysler is just about to invest $4.5 billion in a new plant in Michigan. This will create 6,500 jobs and will provide them with a new facility to produce Jeep’s sport utility vehicle.
So the rest of the world is getting on with it. Investment is not in short supply, and although the world may not be growing quite as fast as it has been, the industry is changing so fast there is investment being made. As pretty well the largest manufacturing sector out there, and certainly the most high-profile, it seems a shame that the UK is seeing its manufacturing base head off in the wrong direction at speed.
Have a great weekend – better brush up on your Brexit jargon, it might be needed by Wednesday to understand what’s going on.
Invention is the mother of necessity.
Thorstein Veblen (1857 – 1929)
He can compress the most words into the smallest ideas of any man I ever met.
Abraham Lincoln (1809 – 1865)
Men are not against you; they are merely for themselves.
If at first you don’t succeed, find out if the loser gets anything.
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