Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 941

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 941
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. •This development has already led to major layoffs across most domestic manufacturers, most notably with Stellantis, Ford and General Motors. Higher wage costs could lead to long-term profit declines. •However, Tesla workers are not union members; the industry leader might not face the same wage hikes and cost pressures as competitors, enabling potential profit expansion. Key External Drivers 1.Crude oil and gas prices directly correlate to demand for hybrid and electric cars; consumers often drive more when prices are low, leading to higher replacement rates. Similarly, consistently high crude oil prices often encourage consumers to switch to more fuel-efficient models, like hybrid and electric vehicles. Falling crude oil prices will pose a minor threat to hybrid and electric vehicle manufacturers. 2.Consumer confidence drives demand for new and used vehicles. Weak consumer confidence discourages more expensive purchases, limiting demand for new hybrid and electric vehicles. Rebounding consumer confidence will present new opportunities for hybrid and electric vehicle manufacturers despite the metric’s volatility through the current period. Annex D-2-7 3.Most automobile manufacturers hybrid and electric vehicles through affiliate car dealerships. New car dealers have increasingly demanded hybrid and electric vehicles based on shifting consumer preferences for eco-friendly and cost-effective driving. The financial crisis took a toll on dealers and many companies had trouble finding funds to stock their showrooms. 4.The trade-weighted index (TWI) measures the strength of the US dollar compared with its closest trading partners. When the TWI appreciates, the cost of US-produced goods increases, making domestic exports relatively more expensive on global trade markets. A strong TWI can cause buyers to shift to foreign producers, slashing demand. Key Success Factors 1.Strong supply chain links: Close relationships with suppliers and good distribution channels are important. Manufacturers need to be able to access parts on a timely basis to ensure the smooth flow of production. Operators need good distribution channels to minimize supply chain interruptions. 2.Use of most efficient work practices: Good industrial relations through a motivated work force ensure the smooth running of a production plant. Work stoppages can be costly to industry players, and good industrial relations can hedge manufacturers against that type of risk. 3.Access to the latest available and most efficient technology and techniques: The degree of investment in technological improvements and product development is important. In the current environment, the development of fuel-efficient, hybrid and alternative-fuel vehicles is crucial for competitive purposes. 4.Ability to expand and curtail operations rapidly in line with market demand: Industry players that respond to market signals will likely be