Gear up: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create page. Sources: Linked pages & i News webpage https://inews.co.uk/news/uk/cancellation-of-x-trail-production-sends-shock-wave-down-nissans-uk-supply-chain/) |
imported>Doug Williamson (Edit quote to focus on gearing issues.) |
||
| Line 4: | Line 4: | ||
Many financial | Many financial problems have been a consequence of gearing up (or leveraging) excessively in earlier periods. | ||
:<span style="color:#4B0082">'''''Nissan X-Trail to be manufactured in Japan, not UK'''''</span> | :<span style="color:#4B0082">'''''Nissan X-Trail to be manufactured in Japan, not UK'''''</span> | ||
:' | :'Nissan’s decision to keep X-Trail production in Japan... represents the cancellation of increased capacity in Sunderland and the creation of a so-called “super site”, which local component makers had been gearing up to supply. | ||
:Mike Matthews, former managing director of Nifco, an automotive parts manufacturer based in Stockton-on-Tees which supplies makers including Nissan, | :Mike Matthews, former managing director of Nifco, an automotive parts manufacturer based in Stockton-on-Tees which supplies makers including Nissan, said: “The Nissan announcement will be a big disappointment. When X-Trail was originally announced, it was big news... | ||
:“In the supply chain, companies will have already factored the new X-Trail into their sales and will now be faced with a challenge of how to meet those sales figures.”' | |||
:''i News, 4 February 2019.'' | :''i News, 4 February 2019.'' | ||
Latest revision as of 10:40, 9 February 2019
'Gearing up' refers to increasing the levels of financial or operation gearing - or both - within an organisation.
The intention of gearing up is to improve expected net results.
A consequence of gearing up is normally to increase risk, and the cost of equity capital.
Many financial problems have been a consequence of gearing up (or leveraging) excessively in earlier periods.
- Nissan X-Trail to be manufactured in Japan, not UK
- 'Nissan’s decision to keep X-Trail production in Japan... represents the cancellation of increased capacity in Sunderland and the creation of a so-called “super site”, which local component makers had been gearing up to supply.
- Mike Matthews, former managing director of Nifco, an automotive parts manufacturer based in Stockton-on-Tees which supplies makers including Nissan, said: “The Nissan announcement will be a big disappointment. When X-Trail was originally announced, it was big news...
- “In the supply chain, companies will have already factored the new X-Trail into their sales and will now be faced with a challenge of how to meet those sales figures.”'
- i News, 4 February 2019.
