Originally Posted By Jays
You are living in cloud cuckoo land Peter!


I know...

the day job is to imagine and explore just this sort of "what-if": I come up with the ideas and then we start on the financials (DCF and such) to see there is a viable return on the investment.

After that others worry about making the investment. Or not. In 10 years we have taken a $4m business unit to $120m with a very healthy gross margin and a growth rate of over 20%. So I sometimes get it right.

So yes, MMC could do this and properly done I believe it would show a return but I don't really think they should. Why? because they would need a technology partner, like BMW and that would change the character of the firm for ever.
They would also need a new, green field manufacturing site as Aston has at Gaydon, the old site would then be a R&D, Custom development Museum.

Aston Martin has realised they cannot survive alone and Lotus is a great example of what happens when people who really don't understand the business get involved.

My guess is that the advancing Euro legislation will force MMC to eventally drop the Trads as Euro Homologated cars, letting UK buyers go down re SVTA, as Caterham does. The Aeros will remain, with a range of models based on the chassis and a comfortable production of 500 to 600 cars a year.

Oh, and as to the "Family Run" business issue: the firm I work for, a US Public Company, is being purchased by a German family owned business for $17 billions. The family has owned the business for almost 350 years and their breif to the management team is to ensure it will be strong and prosperous in another 350 years. So family ownership isn't always a reason for conservatism and lack of ambition.



Peter,
66, 2016 Porsche Boxster S
No longer driving Tarka, the 2014 Plus 8...