Ineos Automotive Restructuring

[Krabby]

Let's consolidate these threads

DONE

 

[DesertGecko]

lol UK sold 302 units in 2024 while maintaining how many service centers!?

It's hard to process these numbers. I'm not familiar with the UK market.
In Australia all the pre orders are now long delivered and the buzz has died and the hard work of selling cars in a competitive market place looks like a struggle. Dropping agency model, not boasting about sales figures, doing massive rolling discounts doesn't bode well.
IMHO the biggest problem ineos faces is they have priced themselves out of the market. Let's hope this restructuring will reduce costs and allow them to hit a more competitive price going forward. They need to sell cars to be viable.
People forget that "unicorn" cars like the original defender and the g-wagon existed within large and diverse product families, and they sold significant numbers to fleets. Their competitor the Toyota 70x series is quite similar in this regard. Ineos is trying to be viable with just one model - they need volume.

 

[Skymark]

I used to work at a mid-size company that a a matter of policy did a round of restructuring layoffs every year. Some years small, some years larger. No doubt always a least favorite time of the year for me & my managers. But the reality never matched the inevitable prognostications of doom. In fact each year the company put together a departure package that consistently exceeded what would be possible for a manager to do on their own if they were only given a vague directive to cut costs or were trying to manage out an under-performing staffer. It enabled the managers to handle the case where an employee was not good but not terrible either. For the company, it freed up cash to reinvest in growth areas. A terrible day for those let go and a bad day for everyone else. But everyone was treated with respect and the company was much more nimble in adapting to a rapidly evolving marketplace. Before I took that job if you asked me if it would ever see a positive role for a layoff you could have knocked me over with a feather.

 

[Zimm]

Before I took that job if you asked me if it would ever see a positive role for a layoff you could have knocked me over with a feather.

Yes, having an official "purge" day every year is a moral booster reflective of awesome management.

 

[Tom109]

I used to work at a mid-size company that a a matter of policy did a round of restructuring layoffs every year. Some years small, some years larger. No doubt always a least favorite time of the year for me & my managers. But the reality never matched the inevitable prognostications of doom. In fact each year the company put together a departure package that consistently exceeded what would be possible for a manager to do on their own if they were only given a vague directive to cut costs or were trying to manage out an under-performing staffer. It enabled the managers to handle the case where an employee was not good but not terrible either. For the company, it freed up cash to reinvest in growth areas. A terrible day for those let go and a bad day for everyone else. But everyone was treated with respect and the company was much more nimble in adapting to a rapidly evolving marketplace. Before I took that job if you asked me if it would ever see a positive role for a layoff you could have knocked me over with a feather.

Yes, having an official "purge" day every year is a moral booster reflective of awesome management.

And a clear indication to work somewhere else!

 

[Skymark]

And a clear indication to work somewhere else!

You would think and I went in thinking that too. But in practice, I was proved wrong. In a company of 8K-12K employees a 0.5%-3% layoff never affected turnover stats which remained 5-8% year over year and the company had no trouble retaining staff nor attracting staff. Counter intuitive, but general staff morale tended to improve seeing lower performing staff moved onwards versus carried year after year. Getting a bit away from the topic of the INEOS Automotive layoff other than to say if they plow HQ cash freed up into better dealer and end customer support roles, I am all for that.