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Lucid (allegedely) hires AlixPartners as part of restructuring.

socktucker said:
i watch the stock and that's what popped up, except I disagree with CarBuzz I don't think it means bankruptcy

Furthermore: I did not use the default headline that said bankruptcy, because if you read the article, CarBuzz has no evidence that they are declaring bankruptcy, it was a clickbait headline.
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Yes and they were adding editorial pizzaz of bs on there, the KSA plant has nothing to do with the Iran war or straight of hormuz, nor is that a real blockage.
 
prgarg said:
Speaking about changes, I read something on LinkedIn about how this new C-Suite exudes testosterone... not a single female leader appointed.
Also their marketing is very male oriented, aimed at men who may buy a car for their wives if they want to, totally ignoring potential female buyers. Hadn't thought about that before, but I do see it now.

Waiting for the disagreements to come in 3, 2, 1... 🙂
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How about this? Inspired to buy?
 
borski said:
Precisely. I posted this on Reddit this morning:

While AlixPartners has advised on some of the largest Chapter 11 reorganizations including General Motors Co., Kmart, and Enron Corp, the firm has since moved into a more traditional consulting space, and grown to a staff of over 1000.

This is a whole lot of non-news re: bankruptcy. Also, they’ve hired like a dozen consulting firms before. I hope AlixPartners is useful. :)

(Which agrees with what @socktucker said; carbuzz is speculating, not providing useful journalism here)
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Personally, I find it concerning that they're hiring a consultancy firm like AlixPartners. Although I've never worked with that particular firm, I found that generally the modern consultancy industry is filled with companies that hire young MBAs who have mastered buzz words but know little of substance. Too often their only useful outcome is summarizing the knowledge of lower level employees that the management team didn't know how to tap into without outside help, which is hardly reassuring about the management's ability to lead the organization into the future. But maybe Alix is better than that. Looking at their website is not reassuring, as it's filled with pablum such as "Discover how we turn AI into ROI!". Sometimes executive teams use outside consultants as a way to placate a disgruntled board by providing a "neutral" third party opinion on how the management teams wants to move forward, and that could certainly be at play with the Saudis.
 
TahoeMichael said:
Personally, I find it concerning that they're hiring a consultancy firm like AlixPartners. Although I've never worked with that particular firm, I found that generally the modern consultancy industry is filled with companies that hire young MBAs who have mastered buzz words but know little of substance. Too often their only useful outcome is summarizing the knowledge of lower level employees that the management team didn't know how to tap into without outside help, which is hardly reassuring about the management's ability to lead the organization into the future. But maybe Alix is better than that. Looking at their website is not reassuring, as it's filled with pablum such as "Discover how we turn AI into ROI!". Sometimes executive teams use outside consultants as a way to placate a disgruntled board by providing a "neutral" third party opinion on how the management teams wants to move forward, and that could certainly be at play with the Saudis.
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Having just retired from being an automotive consultant I can honestly say that every engagement is different. Most of the engagements that I've worked involved acquiring data and information that the client's can't get on their own, providing insight on product markets where the client does not have a presence, simulating product portfolio plays, vehicle segmentation analyses, impact of proposed regulatory changes, and deep competitor analysis. Granted, most of my team's consulting has been on the product side. Alix Partners does some product side work and has teamed with us on some product side work. In other situations they were already imbedded with the client so we were directed to share our findings with them to be consolidated into the final report outs to the clients. But they also do management / business practice / financial consulting that my team did not do.
 
Supposedly Lucid has enough cash on hand to last through next summer. Seems too early to think about bankruptcy if that's the case. On the other hand, Alix does mergers and acquisitions. Maybe Lucid wants to explore that side of their business
 
TahoeMichael said:
Personally, I find it concerning that they're hiring a consultancy firm like AlixPartners. Although I've never worked with that particular firm, I found that generally the modern consultancy industry is filled with companies that hire young MBAs who have mastered buzz words but know little of substance. Too often their only useful outcome is summarizing the knowledge of lower level employees that the management team didn't know how to tap into without outside help, which is hardly reassuring about the management's ability to lead the organization into the future. But maybe Alix is better than that. Looking at their website is not reassuring, as it's filled with pablum such as "Discover how we turn AI into ROI!". Sometimes executive teams use outside consultants as a way to placate a disgruntled board by providing a "neutral" third party opinion on how the management teams wants to move forward, and that could certainly be at play with the Saudis.
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They’ve been around over 40 years, and who knows who made their website? Not them I’m sure.
 
TahoeMichael said:
Personally, I find it concerning that they're hiring a consultancy firm like AlixPartners. Although I've never worked with that particular firm, I found that generally the modern consultancy industry is filled with companies that hire young MBAs who have mastered buzz words but know little of substance. Too often their only useful outcome is summarizing the knowledge of lower level employees that the management team didn't know how to tap into without outside help, which is hardly reassuring about the management's ability to lead the organization into the future. But maybe Alix is better than that. Looking at their website is not reassuring, as it's filled with pablum such as "Discover how we turn AI into ROI!". Sometimes executive teams use outside consultants as a way to placate a disgruntled board by providing a "neutral" third party opinion on how the management teams wants to move forward, and that could certainly be at play with the Saudis.
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And yet some of the largest companies in the world are consultancies. They wouldn’t exist if they weren’t bringing some value to the organizations that hire them. But I get the fact that nobody likes an outsider coming in and telling them how to do their job.

Whether or not retaining Alix in and advisory capacity is a good idea or not remains to be seen. But I can appreciate that the leadership of Lucid isn’t sitting on their hands and is looking for new ideas and solutions. Companies hire consultants to fix problems they haven’t succeeded in fixing on their own or to manage transitions that may be beyond the capabilities of legacy employees. And that characterization seems to fit here. It’s a make or break moment for the company.
 
If they have a revolver and drew down on it, that’s generally allowed as long as they’re not in default, so just because they drew down, doesn’t mean they won’t claim bankruptcy next month. Not saying that’s going to happen but borrowing isn’t an indicator of not going into chapter 11.
 
I don’t get the benefit of using chapter 11 to wipe out the debt of Lucid. Lucid has two bond issuances totaling about $2.1 Billion, but PIF and subsidiaries have a whole bunch more money invested. PIF et al would gain control by being biggest debtors, but they are already in control through stock ownership.

I’m running with Alix Partners being hired to help reorganize the car company. None of the recent hires in the C-suite seem to be experienced in dismantling an ongoing concern.

YMMV, but that’s my thinking at this point.

Dream Ahead.
 
Not saying they will file. Just explaining that drawing down doesn’t mean they can’t.

Separately, there is a saying of throwing good money after bad. At some point, it no longer makes sense to keep investing in a failing company just because you’ve already invested a significant sum.

It’s worrisome that I ordered my gravity in April with an 8 to 12 week expected delivery and they’ve missed the date twice. Not good.
 
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TahoeMichael said:
Personally, I find it concerning that they're hiring a consultancy firm like AlixPartners. Although I've never worked with that particular firm, I found that generally the modern consultancy industry is filled with companies that hire young MBAs who have mastered buzz words but know little of substance. Too often their only useful outcome is summarizing the knowledge of lower level employees that the management team didn't know how to tap into without outside help, which is hardly reassuring about the management's ability to lead the organization into the future. But maybe Alix is better than that. Looking at their website is not reassuring, as it's filled with pablum such as "Discover how we turn AI into ROI!". Sometimes executive teams use outside consultants as a way to placate a disgruntled board by providing a "neutral" third party opinion on how the management teams wants to move forward, and that could certainly be at play with the Saudis.
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I agree with you, but Lucid has a very long history of using outside consultancies. I agree they are mostly pointless.

AlixPartners, at least, is actually quite solid in their work, historically; much more so than the 'Big 5,' in my experience.
 
RLead8 said:
Not saying they will file. Just explaining that drawing down doesn’t mean they can’t.

Separately, there is a saying of throwing good money after bad. At some point, it no longer makes sense to keep investing in a failing company just because you’ve already invested a significant sum.

It’s worrisome that I ordered my gravity in April with an 8 to 12 week expected delivery and they’ve missed the date twice. Not good.
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Depends on your definition of bad is. If it’s establishing the first automobile manufacturing plant in Middle East and jobs for its citizens it’s good.

If it’s trying to make a quick buck….bad
 
prgarg said:
Speaking about changes, I read something on LinkedIn about how this new C-Suite exudes testosterone... not a single female leader appointed.
Also their marketing is very male oriented, aimed at men who may buy a car for their wives if they want to, totally ignoring potential female buyers. Hadn't thought about that before, but I do see it now.

Waiting for the disagreements to come in 3, 2, 1... 🙂
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As a female buyer, I concur. Just my two cents, the car industry in general isn't female friendly so I can't particularly blame lucid. To be fair, how many female users are on this forum? I suspect not many.
 
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