Suncor Energy Inc. T.SU

Stellantis to close huge ICE plant near chicago

[Obscure1]

Here 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.

[mrbb]

Or maybe they close the illinois plant to streamline operation and reduce production cost Tim Ferguson, shop chairman for United Auto Workers (UAW) union Local 1268, which represents the Illinois plant's hourly workers, said in an interview that company documents show Cherokee production being moved to the company's Toluca, Mexico, plant.

[Experienced]

Interesting and thoughtful post as usual Obscure. One of things that struck me reading the post was the question - "Why is there a microshiop shortage?"....and "What is the impact of that shortage?"  I knew there was a shortage since my order for my IONIQ5 keeps getting delayed (I don't expect to see delivery until October 2024 at the earliest and I ordered it last

[Obscure1]

Experienced  wrote: 1.....management has doubled down on oil and related services such as gas stations in a world where the growth trajectory is slowing and in the case of the gas stations, likely to be negative and so the market is punishing the SP 2....this transition is going to take a decade or two I have to respectfully disagree that the transistion for gas stations is going to take a

[davidan31]

What percentage of the EV revolution is due to market forces as opposed to government incentive/bullying? I would argue very little. Thus, it is somewhat artificial and not sustainable. Only a consistent very high price for oil makes EV viable. I suspect that disturbing trends throughout the world will result in government failures and introduce the practical reapplication of technology that works

[Experienced]

While it true that there is certainly bullying by Governments around the world to legislate the adoption of EVs combined with rebate incentives, the reality is that the math for getting an EV is quite compelling. As I have mentioned before, I have ordered an IONIQ5.  Based on current oil prices, the payback period based on my driving habits compared to an equivalent ICE is about 2 years and

[davidan31]

Experienced, that is an impressive payback period. I will take your word for it. In rural Ontario with icy, windy powerlines ICE is for me the best option.   I own multiple gas and electric chainsaws and gas and electric off road vehicles. The gas is always the more serious and reliable option though electric admittedly fun and novel. Thats my only experience with electric.

[Experienced]

Good point David. Where you live is a good example of my point in terms of investing in companies that provide solutions to the problems that will emerge as the world moves to EVs and puts additional strain on the grid plus the usual incompetence of political leadership around the world. A private company that I have invested in has a solution to provide companies the ability to essentially have