RIYADH: Marc Winterhoff, the acting CEO of Public Investment Fund-owned Lucid Motors, stated that the main pressures on profit margins are linked to several overlapping factors, most notably supply chain disruptions, rising logistics costs, and geopolitical changes affecting shipping and component flows.
In exclusive statements to Al-Eqtisadiah, Winterhoff stated that these challenges have become an integral part of the company’s ongoing daily operations.
He explained that any disruption to supply chains, whether due to geopolitical tensions, the closure of some logistics corridors, or even security risks, directly leads to higher production and transportation costs, which puts pressure on overall profit margins.
He added that such disruptions often force the company to rethink how it manages production processes and supply chains, and to rearrange its supply sources and manufacturing plans. This, in turn, leads to additional costs, but it also provides the company with operational flexibility.
In a related context, Winterhoff stated on the sidelines of an exclusive online media roundtable, held to provide deeper insights following the recent “World Investor Day” event, that having manufacturing and production facilities in both Saudi Arabia and the US gives the company the ability to redirect production in response to changes in global supply chains and logistical conditions.
