Seems the rope selling is winding down. VW was the leading brand in China, for years. They have now lost that position.
So now the big dog lowers expectations to being “among the top three”.
GM and Ford have also been losing share in China. Ford is down to a 1% share, and Farley is talking about remissioning the Chinese op as building for export, rather than trying to sell into the domestic market anymore. Jeep has withdrawn entirely from China.
The last time that I was in China there were VW’s, Mercs and BMW’s everywhere. They were a status symbol. Times are changing:
…and another paywall.
The Chinese strategy, requiring foreign companies to partner with domestics, worked to perfection: the Chinese learned how to build cars, and climbed the learning curve in record time. Seems the US and EU automakers could not see that, or figured, when the collapse comes, someone else with be CEO.
…“when it comes time to hang all the capitalists, they will sell us the rope”.
Steve
My last employer, Arm, did that a few years back with their China Joint Venture. That has turned into a disaster, one that might impact their pending IPO.
Did not realize you were not working with them any longer. I thought of asking you about hte IPO and passed until I read this.
Your thoughts on the IPO?
I’m torn on answering. I’ve been at Nvidia for over a year now, so that kind of gets me past the “one year mark” on not recruiting people, etc. But I’m still not sure if I should say anything about either company. But if you were to ask me if I have any regrets about switching employers, let’s just say I’m happy here.
The best way to answer this question is to look at Arm as you would any company. Look at revenue growth. Look at profitability. Look at customer base. Etc.
I am hearing the IPO will be next week, the 13th or 14th however.
I bought ARM in 2003 at the end of the NASDAQ meltdown, as they appeared to be one of the babies being thrown out with the bathwater. It was one of my best investing decisions ever. As an embedded systems engineer, I still have great respect for the product but I’m not sure they are the same company they were then. I’ll probably pass on the new IPO, although I’ll be watching.
I was a fan of ARM Holding since before the dot com meltdown. During the end of September 2002 ARMH had a 60% one day drop on an earnings report that had some Fools accusing management of being criminals. I doubled my position at what turned out to be a bottom. Unfortunately the charts are no longer available since ARM was bought out by SoftBank.
20 years makes a whole lot of difference, not only the company changed but the whole industry developed. One very favorable item is that ARM is Inside most if not all Apple devices. I would not rush to buy the IPO, IPOs are mostly gambles for outsiders. Wait for the stock calm down (6 month?) and use the time to study the New ARM.
The Captain
The company states that its energy-efficient CPUs are in over 99% of the world’s smartphones in 2022, and estimates that approximately 70% of the world’s population uses Arm-based products. Arm saw revenue decline in both the most recent quarter, largely due to issues in China, which it expects to continue in the near term.
The Captain