1 00:00:00,120 --> 00:00:01,920 Speaker 1: Joining us now, I am so pleased to say, is 2 00:00:02,080 --> 00:00:05,400 Speaker 1: let us CEO Carlos Tavares Carlos, when you talk about 3 00:00:05,440 --> 00:00:08,360 Speaker 1: a turbulently year ahead, is it because of a lack 4 00:00:08,400 --> 00:00:11,319 Speaker 1: of demand, Is it because of competition from China? Is 5 00:00:11,360 --> 00:00:14,040 Speaker 1: it because of politics, or is it because frankly, people 6 00:00:14,080 --> 00:00:15,600 Speaker 1: are just pushing back against pricing. 7 00:00:17,239 --> 00:00:19,480 Speaker 2: Well, I think it's because all of the things you said, 8 00:00:19,480 --> 00:00:23,560 Speaker 2: But we did not say it was more turbulent than 9 00:00:23,600 --> 00:00:24,200 Speaker 2: twenty three. 10 00:00:24,239 --> 00:00:25,960 Speaker 3: We said it was turbulent, which. 11 00:00:25,760 --> 00:00:30,440 Speaker 2: Means, you know, our industry and specifically Stalenties is now 12 00:00:30,560 --> 00:00:37,520 Speaker 2: used to manage turbulent situations. It's august that from an economics, geopolitics, 13 00:00:37,840 --> 00:00:44,440 Speaker 2: technology offensive of Chinese competitors, we expect twenty twenty four 14 00:00:45,080 --> 00:00:48,960 Speaker 2: to be quite turbulent, indeed quite dynamic. But you know 15 00:00:49,000 --> 00:00:52,800 Speaker 2: also that Salenties is all about sports. It's all about racing. 16 00:00:53,360 --> 00:00:57,040 Speaker 2: It is in our DNA to race, which means we 17 00:00:57,160 --> 00:01:00,320 Speaker 2: like turbulence. We like because it's a very competitive period 18 00:01:00,360 --> 00:01:04,160 Speaker 2: in which you can demonstrate eventually that you are better 19 00:01:04,200 --> 00:01:06,360 Speaker 2: than the other guys. So we like turbulence is an 20 00:01:06,360 --> 00:01:09,319 Speaker 2: opportunity to show competitive edge for the company, and we. 21 00:01:09,280 --> 00:01:11,479 Speaker 1: Can get into that in just a minute. I am 22 00:01:11,600 --> 00:01:15,080 Speaker 1: curious about some of the increased costs, in particular due 23 00:01:15,120 --> 00:01:17,360 Speaker 1: to some of the labor negotiations that we've been seeing 24 00:01:17,400 --> 00:01:20,360 Speaker 1: in the United States. I'm just wondering from your perspective, 25 00:01:20,720 --> 00:01:24,640 Speaker 1: how that's featured into some potential cost cutting or other 26 00:01:24,720 --> 00:01:27,679 Speaker 1: measures to try to offset some of the higher fees. 27 00:01:29,120 --> 00:01:32,440 Speaker 2: Absolutely, you see that what is the most important for 28 00:01:32,560 --> 00:01:37,360 Speaker 2: us is that we deliver on our mission, which is 29 00:01:37,400 --> 00:01:41,320 Speaker 2: to offer safe, clean, and affordable mobility. 30 00:01:41,360 --> 00:01:43,760 Speaker 3: This is our mission right now. 31 00:01:43,840 --> 00:01:48,000 Speaker 2: We know that we have a challenge on affordability. Affordability 32 00:01:48,040 --> 00:01:51,240 Speaker 2: means that we need to absorb the additional cost of 33 00:01:51,360 --> 00:01:56,120 Speaker 2: the EV technology. It's around thirty to forty percent. So 34 00:01:56,400 --> 00:01:59,520 Speaker 2: we need to absorb it, and we need to absorb 35 00:01:59,520 --> 00:02:03,040 Speaker 2: it by a better design, a better designed to costs, 36 00:02:03,440 --> 00:02:07,480 Speaker 2: by more efficiency in everything we do, in our plans, 37 00:02:07,480 --> 00:02:09,440 Speaker 2: in our supply chain, in our logistics. 38 00:02:09,919 --> 00:02:11,280 Speaker 3: We need to make sure that at the end of 39 00:02:11,360 --> 00:02:12,040 Speaker 3: the day when. 40 00:02:11,919 --> 00:02:17,600 Speaker 2: We go to market, we have the most optimized strategy 41 00:02:17,639 --> 00:02:19,640 Speaker 2: in the way to go to market. All of this 42 00:02:19,840 --> 00:02:24,240 Speaker 2: is creating a huge area for optimization to accelerate the 43 00:02:24,280 --> 00:02:29,639 Speaker 2: productivity that will mitigate the additional cost of the technology 44 00:02:30,280 --> 00:02:33,160 Speaker 2: in order for us to make it very simple to 45 00:02:33,320 --> 00:02:37,359 Speaker 2: sell BV cars at the price of IC cars. This 46 00:02:37,440 --> 00:02:40,000 Speaker 2: is the mission we have and we expect to work 47 00:02:40,120 --> 00:02:42,760 Speaker 2: very hard on that. The good thing is that as 48 00:02:42,800 --> 00:02:46,840 Speaker 2: we delivered record results in twenty twenty three, we at 49 00:02:46,840 --> 00:02:50,079 Speaker 2: the same time recognize that we did not do everything right. 50 00:02:50,639 --> 00:02:53,360 Speaker 2: So all the things that operationally we did not do 51 00:02:53,440 --> 00:02:56,560 Speaker 2: in a perfect way in twenty three represent as many 52 00:02:56,560 --> 00:02:59,760 Speaker 2: opportunities to do it better in twenty four and contribute 53 00:03:00,200 --> 00:03:02,960 Speaker 2: at one point in time to bringing BV products to 54 00:03:03,040 --> 00:03:05,160 Speaker 2: the market at the price of the ICs. 55 00:03:05,200 --> 00:03:05,919 Speaker 3: That's our mission. 56 00:03:06,320 --> 00:03:07,320 Speaker 4: Well to get to that mission. 57 00:03:07,360 --> 00:03:09,959 Speaker 1: Does this mean more layoffs of people in the US 58 00:03:10,000 --> 00:03:12,360 Speaker 1: to compensate for some of those wage increases that happen 59 00:03:12,440 --> 00:03:13,160 Speaker 1: at the end of the year. 60 00:03:14,600 --> 00:03:17,120 Speaker 2: What it means is that we are in a transformation. 61 00:03:18,600 --> 00:03:21,440 Speaker 2: Perhaps it's good that we take a few seconds to 62 00:03:21,480 --> 00:03:27,320 Speaker 2: explain that a transformation is not an addition, which means 63 00:03:27,400 --> 00:03:32,320 Speaker 2: us we are expected to transform our industry to a 64 00:03:32,400 --> 00:03:38,000 Speaker 2: more automotive tech oriented industry with zero mission vehicles. What 65 00:03:38,080 --> 00:03:40,240 Speaker 2: we are going to do is we are going to transform. 66 00:03:40,440 --> 00:03:44,120 Speaker 2: Transform means less here and more there. Let me give 67 00:03:44,120 --> 00:03:48,520 Speaker 2: you an example we have been creating a very significant, 68 00:03:48,720 --> 00:03:52,640 Speaker 2: brand new division of software engineers with more than four 69 00:03:52,680 --> 00:03:56,920 Speaker 2: thousand software engineers, just to take care of the entertainment, 70 00:03:57,360 --> 00:04:01,280 Speaker 2: take care of the new electronic archet and make sure 71 00:04:01,320 --> 00:04:03,760 Speaker 2: that we bring all the services in the car that 72 00:04:03,840 --> 00:04:06,560 Speaker 2: the consumers are expecting from us. So we are creating 73 00:04:06,640 --> 00:04:10,720 Speaker 2: tons of jobs on software engineering. We may need less 74 00:04:11,000 --> 00:04:14,360 Speaker 2: in other kinds of technologies, like for instance, internal combustion 75 00:04:14,440 --> 00:04:19,640 Speaker 2: engine technologies. So transformation means it's not an addition, means 76 00:04:19,800 --> 00:04:23,560 Speaker 2: it's a change from what exists today to something different. 77 00:04:23,600 --> 00:04:26,800 Speaker 2: This is what we are somewhere instructed to do in 78 00:04:26,920 --> 00:04:30,320 Speaker 2: this very significant transformation maftware industry. 79 00:04:30,480 --> 00:04:33,760 Speaker 4: So Conlins, have we discussed the further transformation. The market 80 00:04:33,800 --> 00:04:35,760 Speaker 4: is tuned in here this morning and they want to 81 00:04:35,800 --> 00:04:39,320 Speaker 4: know where you and the chairman are. You're throwing off 82 00:04:39,360 --> 00:04:42,119 Speaker 4: cash up the dividend, great for the shareholders this morning. 83 00:04:42,279 --> 00:04:44,840 Speaker 4: The market expects you to produce thirty billion and net 84 00:04:44,839 --> 00:04:46,719 Speaker 4: cash this year. What the market we want to know 85 00:04:46,839 --> 00:04:49,719 Speaker 4: is how aligned are you with John Elkin. You've both 86 00:04:49,760 --> 00:04:51,800 Speaker 4: been on the tape. You're talking about M and A. 87 00:04:52,040 --> 00:04:54,839 Speaker 4: He's pushing back. There are no plans being studied regarding 88 00:04:54,920 --> 00:04:58,120 Speaker 4: mergers of stell ants with other manufacturers. You're the CEO. 89 00:04:58,160 --> 00:05:00,280 Speaker 4: We know you're an advocate of M and A. How 90 00:05:00,320 --> 00:05:05,960 Speaker 4: aligned are you? Are you actively lobbying John to engage 91 00:05:06,279 --> 00:05:09,640 Speaker 4: in M and A? Are you at odds or are 92 00:05:09,720 --> 00:05:10,239 Speaker 4: you together? 93 00:05:12,160 --> 00:05:16,039 Speaker 2: I think you just have to read carefully what was 94 00:05:16,080 --> 00:05:18,960 Speaker 2: said by the company and by our chairmen in the 95 00:05:19,040 --> 00:05:23,360 Speaker 2: sequence the company said when those speculations, which by the 96 00:05:23,360 --> 00:05:28,360 Speaker 2: way are pure speculations, when they appeared, we said there. 97 00:05:28,320 --> 00:05:29,320 Speaker 3: Is nothing ongoing. 98 00:05:30,880 --> 00:05:34,000 Speaker 2: There is a statement a press release from the company 99 00:05:34,000 --> 00:05:38,360 Speaker 2: at that point in time. Twenty four hours later, the chairman, 100 00:05:38,440 --> 00:05:42,719 Speaker 2: John Elkan confirmed the same way. So I don't know 101 00:05:42,760 --> 00:05:45,080 Speaker 2: where you are seeing any kind of misalignment. I just 102 00:05:45,160 --> 00:05:48,159 Speaker 2: see a perfect alignment on those statements. So I want 103 00:05:48,160 --> 00:05:50,920 Speaker 2: to confirm that indeed there is a perfect alignment. 104 00:05:50,960 --> 00:05:53,159 Speaker 3: There is no ongoing M and A discussions. 105 00:05:53,600 --> 00:05:58,200 Speaker 2: There is the perfect recognition that in the future the 106 00:05:58,240 --> 00:06:01,960 Speaker 2: companies which are not fit to face the Chinese competition 107 00:06:02,120 --> 00:06:05,839 Speaker 2: will maybe put themselves in trouble. We are not among 108 00:06:05,880 --> 00:06:08,400 Speaker 2: those ones because we are one of the most profitable 109 00:06:09,160 --> 00:06:10,720 Speaker 2: OEMs on the planet. 110 00:06:10,800 --> 00:06:12,320 Speaker 3: So we expect to stay healthy. 111 00:06:12,839 --> 00:06:15,600 Speaker 2: Because if those opportunities were to come, then we'll be 112 00:06:15,680 --> 00:06:19,599 Speaker 2: there eventually. But at this stage I can confirm, as 113 00:06:19,600 --> 00:06:22,680 Speaker 2: we did in a statement that was confirmed by the 114 00:06:22,760 --> 00:06:25,800 Speaker 2: chairman a few hours later, that there is no ongoing 115 00:06:25,839 --> 00:06:28,839 Speaker 2: discussion on that matter, So there is no misalignment and 116 00:06:28,920 --> 00:06:29,480 Speaker 2: there is no. 117 00:06:29,560 --> 00:06:30,880 Speaker 3: M and A discussions right now. 118 00:06:31,200 --> 00:06:35,320 Speaker 2: That was a pure speculation from a certain number of media, 119 00:06:35,360 --> 00:06:37,680 Speaker 2: and you know perfectly wellway it's coming from. 120 00:06:37,480 --> 00:06:39,800 Speaker 1: Carlos just quickly here. I am wondering, though, if you're 121 00:06:39,839 --> 00:06:42,520 Speaker 1: basically saying that even without M and A, without making 122 00:06:42,520 --> 00:06:45,760 Speaker 1: any acquisitions to Lantis can compete on the electric vehicle 123 00:06:45,800 --> 00:06:48,320 Speaker 1: front with China given the current structure. 124 00:06:50,279 --> 00:06:52,680 Speaker 3: I think we can. I think we can. 125 00:06:53,640 --> 00:06:56,440 Speaker 2: The only open question will be the speed at which 126 00:06:56,480 --> 00:06:57,800 Speaker 2: we are going to progress. 127 00:06:58,400 --> 00:06:58,960 Speaker 3: I think we can. 128 00:06:59,040 --> 00:07:01,760 Speaker 2: I think we have enough ied years, and we have 129 00:07:01,920 --> 00:07:05,080 Speaker 2: enough things that we are not doing perfectly well that 130 00:07:05,160 --> 00:07:08,520 Speaker 2: we could do better. I think that our supply chain 131 00:07:08,560 --> 00:07:13,040 Speaker 2: has been changing significantly in terms of more vertical integration 132 00:07:13,200 --> 00:07:16,640 Speaker 2: that gives us more cost competitiveness in everything we do. 133 00:07:17,120 --> 00:07:19,640 Speaker 2: So I think that when we look at the full 134 00:07:19,760 --> 00:07:23,480 Speaker 2: of ideas that we have to bring the cost of 135 00:07:23,600 --> 00:07:27,320 Speaker 2: evs down to the level of ices is quite large 136 00:07:27,600 --> 00:07:30,440 Speaker 2: and of course we are embracing that, I would say 137 00:07:30,480 --> 00:07:33,480 Speaker 2: in a very exciting way, because we want to get 138 00:07:33,480 --> 00:07:36,480 Speaker 2: the job done very quickly. Then we're going to be 139 00:07:36,560 --> 00:07:39,840 Speaker 2: able to do it as fast as we wanted to. 140 00:07:40,000 --> 00:07:42,760 Speaker 2: That's something we'll see in the future. But there is 141 00:07:42,760 --> 00:07:45,880 Speaker 2: a very important thing you can see already now is 142 00:07:45,880 --> 00:07:48,560 Speaker 2: that in the European market we are bringing the new 143 00:07:48,720 --> 00:07:53,040 Speaker 2: EC three C tren at twenty three three hundred euros 144 00:07:53,120 --> 00:07:57,560 Speaker 2: let's say twenty five thousand dollars with a mild trim, 145 00:07:57,680 --> 00:08:00,880 Speaker 2: with the full equipment and features, and that car is 146 00:08:00,920 --> 00:08:04,200 Speaker 2: perfectly fit to face the Chinese competition. So we are 147 00:08:04,200 --> 00:08:07,160 Speaker 2: already there, and that car is sold with some profit, 148 00:08:07,240 --> 00:08:10,240 Speaker 2: not as many profit much profit as we would like, 149 00:08:10,280 --> 00:08:11,120 Speaker 2: but it's already there. 150 00:08:11,160 --> 00:08:13,360 Speaker 3: So we are getting there, and we expect now to 151 00:08:13,400 --> 00:08:14,880 Speaker 3: ak celebate Carlo severas. 152 00:08:14,960 --> 00:08:16,880 Speaker 1: Unfortunately we have to leave it there. It's light to Ceo, 153 00:08:17,120 --> 00:08:19,280 Speaker 1: thank you so much. This is bloom work.