Gear up

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Revision as of 16:45, 8 February 2019 by 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/)
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'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 disasters have been a consequence of gearing up (or leveraging) excessively in this way in earlier periods.


Nissan X-Trail to be manufactured in Japan, not UK
'While Nissan’s decision to keep X-Trail production in Japan will have no immediate effect on jobs in Britain, it 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, told i: “The Nissan announcement will be a big disappointment. When X-Trail was originally announced, it was big news. There hadn’t been a new model announced in the UK in around 20 years."'
i News, 4 February 2019.


See also