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Eyes on Fiat Chrysler's Canadian plants as company merges with Peugeot to create $47-billion auto giant – Financial Post

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PSA Group and Fiat Chrysler Automobiles NV will combine to create the world’s fourth-biggest carmaker, as the manufacturers prepare to shoulder the costly investments in new technologies transforming the industry such as automation and electrification.

In the biggest auto tie-up since Daimler’s ill-fated purchase of Chrysler in 1998, the French and Italo-American carmakers will each own half of the enlarged business with combined annual sales of 8.7 million vehicles.

The all-stock transaction brings together two carmaking dynasties — the billionaire Agnelli clan of Italy and the Peugeots of France — and will forge a regional powerhouse to rival Germany’s Volkswagen AG with a market value of about US$47 billion, surpassing Ford Motor Co.

Executives promised not to close any plants in the merger even though the new company aims to extract 3.7 billion euros in annual synergies related to platform and purchasing efficiencies. FCA currently operates two assembly plants in Ontario where it manufactures nearly one quarter of all vehicles made in Canada.

“In the merger there will be no affect on production in Ontario,” FCA chief executive Mike Manley said on a call with reporters Wednesday.

Earlier this year, FCA announced plans to eliminate a third shift and 1,500 jobs at its Windsor, Ont., plant where 6,000 employees build the Chrysler Pacifica, Chrysler Pacifica Hybrid, Chrysler Voyager and Dodge Grand Caravan.

It has since extended the shift until the end of the first quarter in 2020, and will continue to review the feasibility of maintaining the shift, a spokesperson said in an email. It’s too early to comment on whether that extra capacity — if it opens up — could be used to build PSA vehicles in North America, the spokesperson said.

No cuts have been proposed at FCA’s Brampton, Ont., plant where 3,400 workers build the Chrysler 300, Dodge Charger and Dodge Challenger.

While the combined company said its manufacturing footprint will remain stable for now, the executives touted the synergies from sharing technologies and platforms across brands.

The new company will be run by PSA Chief Executive Officer Carlos Tavares, with Fiat Chairman John Elkann holding the same role.

The transaction will take as long as 15 months to complete, pending approvals by shareholders of both companies and by regulators, the carmakers estimated.

Like executives across the industry, Tavares and Elkann are responding to growing pressure to pool resources for product development, manufacturing and purchasing in the face of trade wars and an expensive shift toward electric and self-driving technology.

“The challenges of our industry are really, really significant,” Tavares, 61, said on the call with reporters. “The green deal, autonomous vehicles, connectivity and all those topics need significant resources, strengths, skills and expertise.”

“The technological revolution we are embracing requires a more innovative response than anything we have done before,” Elkann, 43, said in a letter to staff.

In an era when size is becoming ever more important, the deal will turn the two mid-sized carmakers into a global heavyweight, with a stable of popular brands and annual vehicle sales surpassing General Motors Co. The combination will give Peugeot-maker PSA a long-sought presence in North America and should help Fiat gain ground in developing low-emission technology, where it’s lagged rivals.

Mark Nantais, president of the Canadian Vehicle Manufacturers’ Association, said the deal reflects where the auto industry is going and where it needs to go given how expensive it is to develop new technologies.

“That is so capital intensive and there’s only so much money to go around,” Nantais said. “They have to look for partners, they have to look for synergies in order to basically be prepared for the future.”

As for future manufacturing decisions, Nantais expects the companies to choose markets where it can produce more profitably. While Canada has a skilled labour force, infrastructure and the benefit of the new Nafta deal, it also has higher costs for inputs such as electricity, Nantais said.

“We’re still one of the highest cost jurisdictions to produce,” he said.

When it comes to where to locate production and management, Tavares indicted the company will stick to where the brands have roots and manage through regional headquarters.

“The brands carry the passion, the brands carry the history, the brands carry the emotions. This is why we considered that the brands will stay in their countries of origin,” he said. “Italian brands will stay in Italy, French brands will stay in France, American brands will stay in the U.S., and German brands will stay in Germany.”

Yet the new company will face many challenges. It will still be heavily reliant on Europe’s sluggish and saturated auto market, and poorly positioned in China, the world’s largest country for car sales.

The challenges will be manifold, from improving Fiat’s struggling European operations to meeting tough rules on emissions that kick in next year in the region as well as an unprecedented policy known as the green deal demanding an even tougher clampdown on carbon. Tavares, known as a hard-nosed cost-cutter, will also have to navigate the political crosscurrents in France, Italy and the U.S., where the automakers have deep national roots.

He has tackled tough jobs before, leading the French carmaker back from the brink after taking over in 2014, and reviving the loss-making Opel brand after acquiring it from GM two years ago.

“We believe further synergies above the modest 3.7 billion euros announced will be required to justify the combination going forward, which Tavares’ track record makes likely,” Bloomberg Intelligence analyst Michael Dean said in a note.

The deal with Fiat Chrysler marks a reversal of fortune for the 61-year-old executive, who was forced into a bystander role earlier this year when Elkann approached Renault SA, PSA’s French rival. That merger fell apart in early June after Renault’s Japanese partner, Nissan Motor Co., declined to back it.

China’s Dongfeng Motor Corp., which owns 12 per cent of PSA, will see its stake in the combined company decline to 4.5 per cent as a result of the deal and the sale of a portion of its holding to the French carmaker.

Dongfeng’s stake in PSA has attracted attention because of the possibility it could interfere with U.S. regulatory approval. U.S. economic adviser Larry Kudlow said last month the Trump administration would review the proposed merger because the deal would give the Chinese carmaker a stake in the combined company.

Tavares, on the call, said the companies don’t expect any significant issues from the antitrust regulators.

Fiat CEO Manley dismissed concerns over legal and tax issues that arose in recent weeks. GM in November accused Fiat Chrysler of bribing a union in the U.S. for more favourable terms. Manley, speaking with reporters, called the allegation meritless.

Separately, Italian tax authorities have claimed that Fiat owes the government a hefty sum after underestimating Chrysler’s value following its purchase several years ago. Manley reiterated that the case would have no material impact, and said both issues were reviewed during due diligence with PSA.

Manley, 55, who took over at Fiat last year after the sudden death of industry legend Sergio Marchionne, “will be there alongside” Tavares at the combined group, Elkann said in a letter to employees. He didn’t specify what Manley’s role would be.

Before the closing, Fiat will distribute to its shareholders a special dividend of 5.5 billion euros while PSA will distribute its 46 per cent stake in car-parts maker Faurecia SE to its own investors.

The spinoff or sale of Fiat’s robotics arm Comau slated for the benefit of the Italian company’s shareholders has been modified since October. Now, the planned separation will occur after the closing, and shareholders of the combined company will benefit.

Bloomberg.com

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How to Start a Business?

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Market Research

You have to conduct research on the whole market and find out the gap. This gap will be your opportunity. Moreover, this research will give you an idea of how different businesses work and how they fulfill the needs of the people. Businesses work due to the demand for their products and services in the market. So, through this research, you have to collect information about the following things:

 

 

You can use surveys, questionnaires, and focus group interviews to extract information on the above factors.

 

Business Plan

Develop a complete roadmap for your business. This plan should cover all the details from the manufacturing to the sales and pricing.

 

It has a summary of the complete execution of the company, including the mission of the company, product or service of the company, competitors of the company, management, and employees of the company, as well as the location of the company. This plan should be in such a way that everyone can easily understand.

Investment For Business

If you are not self-funded, then you will need investment for your business. There are several ways to find investment, such as the following:

 

●     Venture capital

You can offer the shares of the company in exchange for shares of the company. In the beginning, you have to offer the company ownership to finance your project.

●     Crowdfunding

In this type of investment, a large number of people give funds to the startup. They are not given shares and profits from the company. However, the company provides them with gifts in the future for their finances.

●     Loans

There are many government and private companies that are offering loans for small and large companies. For this loan, you have to prepare a business plan, expense sheet, and expected profits. You can find several companies that are providing loans for businesses, such as Lendforall, Baker Tilly, West Bank Union, etc.

Structure of Business

Before starting a business, you have to select its structure. Traditionally, you will find the following structures of business:

  • Sole proprietorship
  • Partnership
  • Limited Liability Company
  • Corporation

 

To select any structure, you must analyze and compare your business with others. You will get an idea of which structure will be the most suitable for your business.

Business Tools

Nowadays, there are several business tools available in the market. These tools have made business management easy to a great extent. However, you have to invest in these tools to compete the market. Here are some important tools for business:

 

 

Many other tools are available in the market that are used for different management purposes.

Registration of Business

You have to register your business with the federal government. Moreover, you should apply for the insurance for your business. There are many other documents, such as tax IDs from federal and state governments, licenses and permits for your business, and applying for a business bank account.

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Show Employers You Can Hit the Ground Running

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Employers are increasingly stating: “We want someone who can hit the ground running.”

Essentially, the message is, “Don’t expect us to explain the basics. We expect you to know your sh*t.” Employers understand you’ll need time to learn their business, applications, software, infrastructure, etc. However, they expect that you’re proficient in Microsoft Office Suite software (Word, Excel, PowerPoint), understand file management (creating, saving, and organizing files), and know how to troubleshoot common computer problems, and won’t be learning these basic computer skills as part of your learning curve on their dime.

Employers aren’t in the business of training people. You’re responsible for your career; therefore, you’re responsible for acquiring the skillset you need.

For an employee’s compensation to be justified, an ROI (return on investment) is required. When referring to employment, ROI refers to the value an employee brings to the company relative to their compensation. Employers pay their employees, and employees work for their wages. Employee work value is created when their work directly or indirectly results in profitably selling the company’s goods and services. Your best chance of job security (no guarantee) is to be an employee who undeniably contributes measurable value to your employer’s profitability.

(Employee’s measurable value to the company) – (Employer’s investment in compensation) = (ROI)

Understandably, employers are looking for candidates who can make an immediate impact, individuals who can jump right in, learn and adapt quickly, and start delivering results as soon as possible. Hence, you want to distinguish yourself as being capable and willing to “hit the ground running.”

Here are some tips to help you present yourself as a fast-starting, high-potential hire:

Emphasize relevant experience

Presenting irrelevant information will be perceived as lacking the ability to communicate succinctly, a highly valued skill in the business world. Only share experiences and quantified results (key), results that are pertinent to the position you’re applying for.

When crafting your resume and cover letter, identify the skills, knowledge, and previous responsibilities/quantified results that align with the job you’re aiming for. By demonstrating that you’ve “been there, done that” and brought measurable value to previous employers in a similar scenario, employers will feel confident that you can immediately deliver value.

Showcase transferable skills

Consider the universal soft skills that employers universally value.

  • Analytical
  • Communication
  • Interpersonal
  • Problem-solving
  • Project management
  • Time management

Tell STAR (Situation, Task, Action, Result) stories—describing a specific situation, the task you were assigned, the actions you took, and the results of your actions—that showcase your soft skills and explain how you can leverage them to succeed in the role you’re applying for. This’ll assure your interviewer you have the fundamental skills to achieve successful outcomes.

“While working at Norback, Jenkins, & St. Clair, I led a team of five architects to redesign a historic downtown Winnipeg landmark according to strict deadlines and complex stakeholder demands. I conducted Monday morning team meetings and used Slack to provide tailored updates to keep the team aligned. As a result of my communication skills, the project was completed on time and under the $7.5 million dollars budget.”

Discuss onboarding insights

A great way to position yourself as someone eager to hit the ground running is to show that you’ve considered what it’ll take to start delivering value.

“Based on my understanding of the typical onboarding timeline for this type of position, I anticipate completing all training and ramp-up activities within my first two weeks, enabling me to begin tackling projects by my first quarter.”

Assuming you’ve researched the company and studied current industry trends, which you should have done, mention the extra steps you’ve taken to prepare for the role. This’ll show your willingness to learn and will require minimal handholding.

Emphasize quick adaptability

Employers value the ability to adapt quickly to new situations and challenges. During your interviews, share examples of your flexibility and agility.

At some point in your career, you’ve likely had to learn something new (e.g., software, operating system) on the fly. Also likely, you’ve had to navigate a major change or disruption. Using STAR stories, explain how you approached these scenarios, your strategies, and the positive outcomes.

By showing resilience, resourcefulness, and adaptability, you demonstrate that you can thrive in ambiguous or rapidly evolving environments.

Propose a transition plan.

Presenting a transition plan is a strategy that wows employers, primarily because it is rare for a candidate to do this. This shows you’re ready to take ownership of your onboarding and deliver results.

Include specifics like:

  • Milestones you aim to accomplish in your first 30, 60, and 90 days.
  • Training activities or learning opportunities you’ll pursue.
  • Initial projects or tasks you’d tackle to demonstrate your capabilities.
  • Ways you’ll quickly build relationships with your new colleagues.

Showing this level of forethought and initiative shows you’re a strategic thinker, able to organize your thoughts, and, most importantly, eager to get started.

By touting your relevant experience, showcasing your transferable skills, discussing your onboarding insights, emphasizing your quick adaptability, and proposing a detailed transition plan, you’ll position yourself as a self-driven professional capable of driving results from the start, differentiating you from your competition.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

 

 

 

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Half of Ontarians support union’s goals in ongoing LCBO strike: poll

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Fewer than one-third of Ontarians say they want the provincial government to intervene to end the 12-day strike at Ontario’s main liquor retailer, while about half are supportive of the striking union’s demands.

That’s according to a new Leger poll that asked if the government should use binding arbitration or legislation to ensure LCBO stores open as soon as possible.

Twenty-nine per cent of respondents supported such a move, while 44 per cent opposed it. The poll also asked if respondents support the union’s stated goals, including wage increases and more permanent positions. Just under half, 49 per cent, answered in the affirmative, while 25 per cent said they were not supportive.

Awareness of the strike in Ontario is high, according to the poll, with 89 per cent saying they knew about it, though only 15 per cent reported being personally affected. The Leger poll of 601 residents, conducted last weekend, can’t be assigned a margin of error because online surveys are not considered truly random samples.

Approximately 10,000 workers at the LCBO walked off the job on July 5 after negotiations broke down.

The union representing the workers said the sides were headed back to the bargaining table Wednesday.

The Ontario Public Service Employees Union has said the main issue is the province’s alcohol expansion plans that would see ready-to-drink cocktails sold outside LCBO stores — a move it maintains poses an existential threat to the LCBO and could lead to major job losses.

Colleen MacLeod, chair of the union’s LCBO bargaining unit, has said the plan would “mean thousands of lost jobs, fewer hours for the 70 per cent of LCBO retail workers who are casual and struggling to make ends meet, and hundreds of millions in dollars of lost public revenues drained from health care, education and infrastructure.”

The LCBO, a Crown corporation, nets the province $2.5 billion a year.

On Monday, the Ontario government sped up its expansion plan. The 450 stores across Ontario already licensed to sell beer, wine and ciders will be able to start ordering coolers and seltzers on Thursday and sell them as soon as they arrive.

The province has said it does not want to privatize the LCBO, and that the expansion is about giving people more choice and more convenience to buy alcohol.

Stephanie Ross, an associate professor in the school of labour studies at McMaster University, said Premier Doug Ford doesn’t have a great reputation when it comes to labour, given the high-profile disputes in recent years with health-care and education workers. And he’s faced accusations of making policy moves that benefit friends in the private sector, a criticism that’s been levied against him in the LCBO dispute.

“There is a base of support for the union’s message here, both in terms of the working conditions that they’re trying to fight to improve, and in terms of the role that the LCBO plays in funding public services in the province,” she said.

But the public may not be as sympathetic to LCBO workers as it has been to some others, like in the Metro grocery workers’ strike last year, she said — a relatively straightforward fight by low-paid workers struggling to afford food against the industry being partially blamed for food prices.

“And so in the depths of a kind of historic cost-of-living crisis, I think it was easier to feel sympathy for such workers in terms of really having to fight to make up lost ground.”

That means the LCBO union has its work cut out to try and convince the public of its cause, said Ross, especially when consumers are already divided on the liquor privatization issue in the first place. She thinks the union is doing a good job, however, of arguing the case for the LCBO as a public asset that helps fund important public services.

Larry Savage, a professor in the labour studies department at Brock University, said it’s clear both the union and the Ford government “are working hard to win over the public to their respective positions.”

The union has a “potentially powerful strategy” to gain public support, but it’s not a surefire one, he said in an email.

This strategy “requires people to connect the dots between the privatization of the LCBO and the loss of a critical revenue stream that contributes billions to public services like health care and education.”

Meanwhile, the government’s strategy has been to try and leverage consumer frustration over the strike in order to drive more support for increased privatization, said Savage.

“It’s a high-risk strategy because a heavy-handed approach can sometimes backfire and garner greater sympathy for the workers and their cause.”

In the Leger poll, 32 per cent of respondents said they looked for alternative locations to buy alcohol due to the strike, and while 15 per cent said they were concerned the strike could cause them to spend more money on alcohol.

Savage said while many consumers are likely inconvenienced, he also thinks most Ontarians are suspicious of the premier’s intentions when it comes to the LCBO: “It’s a classic case of private profits over the public good.”

This report by The Canadian Press was first published July 17, 2024.

 

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