Stellantis to close huge ICE plant near chicagoHere is the statement Stellantis made this weekend as they announced the closing of their 5 million sq ft auto plant known for its industry leading automation:
"Our industry has been adversely affected by a multitude of factors like the ongoing Covid-19 pandemic and the global microchip shortage, but the most impactful challenge is the increasing cost related to the electrification of the automotive market,”
This is going to be the first of many.
It won't be long before the GM and Ford ICE plants in Michigan suffer the same fate. Ford is already planning for the inevitable as it is throwing all of its resources behind "Blue Oval City" near Memphis.
The end of ICE vehicles in North America is coming much faster than you think.
I'm not trying to scare anyone but the implications for SU investors are real.
SU's refineries are booming and its downstream sales are strong, but it is going to change.
For a long time, I thought the street hated SU simple because of poor performance followed by the dividend cut. Both are true, but I think it goes much deeper than that. The share price of SU is controlled by American investors and American institutions decide to exit, they don't mess around. I would be keeping a close eye on what Ellotte are doing.
I don't have a dog in the fight anymore after selling my stock. I just don't see a path to getting back into SU again unless the stock gets unfairly punished.
The problem that I'm having now is deciding how to define unfairly punished.
With WTI ticking along at close to $70, SU isn't going to be cranking out the same big numbers that we have seen over the past year. The numbers are still going to be good, but no longer mind boggling.
I hope for everyone's sake here that MigraineCell's call on oil is right. I also hope that oil prices firm up sooner than later because the clock is ticking for North American gasoline and diesel sales.
I'm not surprised that SU couldn't find a buyer willing to pay up for its gas stations.
I believe SU needs to get creative as soon as possible. I just don't know if creativity is in their DNA.
Sorry for being "that guy". I have the utmost respect for outstanding posters on this thread and I just want to keep them thinking, just like they keep me thinking.