PARETO Interim LLC

Discover some of the automotive industry's hot operational topics and where #PARETOinterim can be your partner to turn the challenges into opportunities. #interim #automotiveindustry #leadership #managementconsulting #transformation #suppliercrisismanagement #suppliermanagement #greenfield #nearshoring #turnaround #ddim

The Courage to Be Patient: #Leadership in #Transformation Transforming an organization toward excellence requires patience and resilience. A culture, built on continuous improvement and respect for people, underscores the importance of leaders embodying the courage to be patient to foster sustainable excellence. Patience in Problem-Solving Effective problem-solving is rooted in patience and discipline. Leaders focus on uncovering root causes instead of pursuing quick fixes. They practice genchi genbutsu—observing the work environment firsthand to understand problems at their source. Structured methods like #PDCA, #8D and #A3 guide teams through critical thinking and root cause analysis. Patience ensures solutions address systemic issues, creating long-term stability. By empowering teams to take ownership of problems, leaders foster a culture of accountability and sustainable improvement. The Importance of Listening Listening is a cornerstone of patient leadership. The respect for people highlights the importance of leaders actively listening to employees to build trust and a sense of safety. Active listening requires leaders to set aside assumptions and understand employees’ challenges and ideas. This behavior not only strengthens trust but also enables leaders to gain insights into underlying issues. By involving employees in crafting solutions, leaders promote collaboration and innovation. Listening also signals that every voice matters, creating a more inclusive and engaged workforce. Key Leadership Behaviors Transformational leaders demonstrate behaviors that reflect patience, humility, and a commitment to long-term success: 1. Modeling Behaviors: Leaders set examples by embracing continuous learning, admitting mistakes, and practicing the values they promote. 2. Teaching and Coaching: Leaders empower employees to solve problems through guidance rather than directives. 3. Building Trust: Trust is cultivated through transparency, respect, and fairness, fostering employee engagement. 4. Encouraging Experimentation: Leaders support calculated risks and view failures as opportunities for growth. 5. Balancing Challenge and Support: Leaders set ambitious goals while removing barriers and celebrating progress. Long-Term Thinking “Building people before building products” emphasizes patience and long-term thinking. Leaders focus on developing people and processes, understanding that excellence emerges from sustained effort and coaching. Meaningful #transformation requires time and deliberate care. Toyota is an excellent example for a successful company applying this approach. Conclusion The courage to be patient is a defining trait of effective leaders. By prioritizing listening, modeling desired behaviors, and fostering trust, leaders create an environment where continuous improvement thrives. Patience ensures transformations are sustainable, leaving a legacy of excellence and respect for people. #leadership #management

25% import taxes on goods from #Mexico despite #USMCA? This could mean a substantial risk for business in Mexico or will for example automotive suppliers and OEMs just try to increase prices accordingly? Will there be retaliation from Mexico to the US? Are there any different levers now that Mexico had 4 years ago during the USMCA negotiations? Let us know your thoughts. #tariffs #trump https://lnkd.in/dnsunXGz

Same success factors as for any transformation projects. However, I'm missing the 5th "C" for "collaborative" which means that employees need to be taken on that journey with training, motivation and managing fears. Only "CEO Led" is not enough.

Interesting insights to the #IMMEX program that helps improve the cash flow in many companies operating in #Mexico

The morphing world order across trade, economics, industrial policy, defense, and security has thrust geopolitics to the forefront. Organizations that view the challenges through a value-creation lens while proactively navigating risks are best positioned to become tomorrow's market leaders. Explore insights from McKinsey's new Geopolitics practice to learn how➡️https://mck.co/4evEAnF

What are your thoughts about how the EU and US should react against the enormous subsidies for the Chinese automakers? The Chinese government has significantly bolstered its domestic automotive industry, particularly the electric vehicle (EV) sector, through extensive subsidies and supportive policies. These measures have been pivotal in enabling Chinese automakers to secure substantial market shares both domestically and internationally. Direct Financial Support: Between 2021 and 2023, Chinese automakers, including Dongfeng, GAC, and BAIC, received over €5.7 billion in direct subsidies. Additionally, major players like SAIC, Changan, FAW, Great Wall Motor, and BYD benefited from nearly €10 billion in tax breaks and reimbursements. Indirect Subsidies: Beyond direct financial aid, Chinese automakers receive substantial indirect support, such as low-cost electricity, access to land at below-market prices, and loans from state banks at exceptionally low interest rates. Even financially struggling firms secure loans at rates below the national benchmark. Increased Intransparency in Reporting: Companies like BYD have become less transparent in their financial reporting. The company has been observed consolidating different financial items, such as interest expenses with dividend payouts, and moving details about subsidies to appendices, making it harder to trace the actual extent of government support. Challenges for European Automakers: The European Union has responded to these practices by imposing tariffs of up to 35.3% on Chinese EV imports. This has caused tension, especially among German automakers like Volkswagen, BMW, and Mercedes, who fear potential retaliatory measures from China. Despite their public opposition to the tariffs, German manufacturers are aware of the competitive threat posed by Chinese automakers, particularly in light of the heavy subsidies backing their rapid expansion. Implications for the Market: Analysts predict a consolidation wave in China’s automotive sector within the next 3-5 years, driven by the government’s focus on supporting companies that can survive intense market competition. The current state support is reminiscent of the strategy used in the solar industry, which ultimately led to the collapse of Germany’s solar market due to Chinese dumping prices. Impact on Employment: The Chinese government’s industrial policy also prioritizes high employment levels. For instance, BYD employs around 900,000 people, significantly more than Volkswagen, while maintaining higher personnel expenses than its German counterparts. Strategic Goals: China’s strategy not only aims at bolstering its domestic automotive industry but also at increasing its influence in international markets, particularly in the EU. The document suggests that China may adjust its investments based on how different EU countries respond to the tariffs. #automotiveindustry #subsidies #china #tariffs

Some more learning about Mexico: Why do they have all those yellow flowers on the Día de los Muertos in México? The #cempasúchil flower, often known as the “marigold” in English, holds a special place in Mexican culture, especially during Día de los Muertos (Day of the Dead). The bright orange and yellow blooms are believed to guide the spirits of the departed back to the world of the living through their vibrant color and distinct fragrance. There’s a beautiful legend associated with the cempasúchil that explains why this flower has such a strong connection to the holiday. The legend goes that Xóchitl and Huitzilin were two young lovers who adored each other deeply and would climb a mountain to offer flowers to Tonatiuh, the sun god, as a symbol of their love. One day, Huitzilin went off to war and tragically lost his life. Heartbroken, Xóchitl climbed to the top of the mountain and prayed to Tonatiuh to unite her with her beloved. Moved by her devotion, Tonatiuh blessed her by transforming her into a beautiful cempasúchil flower. As soon as her petals opened, a hummingbird, believed to be the spirit of Huitzilin, appeared and touched her flower heart, bringing them together again in spirit. This is why, during Día de los Muertos, cempasúchil flowers are said to help guide the spirits back home, and the hummingbird is seen as a symbol of everlasting love and the connection between the living and the dead. The flower’s intense colors and scent are thought to attract the souls, guiding them along the pathways created with marigold petals to reach their altars, known as ofrendas. All photos by imagegallery.de #xantolo #diadelosmuertos #mexico #nearshoring #bmwsanluispotosi

Some more learning about Mexico: Why do they have all those yellow flowers on the Día de los Muertos in México? The #cempasúchil flower, often known as the “marigold” in English, holds a special place in Mexican culture, especially during Día de los Muertos (Day of the Dead). The bright orange and yellow blooms are believed to guide the spirits of the departed back to the world of the living through their vibrant color and distinct fragrance. There’s a beautiful legend associated with the cempasúchil that explains why this flower has such a strong connection to the holiday. The legend goes that Xóchitl and Huitzilin were two young lovers who adored each other deeply and would climb a mountain to offer flowers to Tonatiuh, the sun god, as a symbol of their love. One day, Huitzilin went off to war and tragically lost his life. Heartbroken, Xóchitl climbed to the top of the mountain and prayed to Tonatiuh to unite her with her beloved. Moved by her devotion, Tonatiuh blessed her by transforming her into a beautiful cempasúchil flower. As soon as her petals opened, a hummingbird, believed to be the spirit of Huitzilin, appeared and touched her flower heart, bringing them together again in spirit. This is why, during Día de los Muertos, cempasúchil flowers are said to help guide the spirits back home, and the hummingbird is seen as a symbol of everlasting love and the connection between the living and the dead. The flower’s intense colors and scent are thought to attract the souls, guiding them along the pathways created with marigold petals to reach their altars, known as ofrendas. All photos by imagegallery.de #xantolo #diadelosmuertos #mexico #nearshoring #bmwsanluispotosi