I agree it is sad in a company where the people are clearly right behind the brand and proud. Still 20% is less than I had expected given the edge they were actually living on.
I am going to guess that without the investment from Stroll a few months back they would have had trouble continuing. Not necessarily bankrupt but back in the position where they could not finance new models to market or invest further. Part of that investment would have probably included a reduction in operating costs to extend the period that the investment was valuable to them over. That would allow the almost there SUV to produce increased revenue and cash-flow releasing them from the spiral. So I would have expected 10-20% staff reductions based on that program. To then have this damned CV19 induced smack to the face on top must have been quite horrible.
Mr Mosler has quite a magic trick to perform moving forwards. The good news is that the SUV should provide some positive effect and making them get their hands dirty pushing the cars is something that should have been happening last year. The challenge for them is the ratio of revenue to investment. Unless they ramp units up any substancial investment like the SUV drains the bank of reserves. I remain impressed that Morgan have done such a good job on the limited funds and resources that they have with the CX cars.
Last edited by Alistair; 04/06/20 12:59 PM.
