Thinking out loud about this latest acq. So the dominant...

Thinking out loud about this latest acq.

So the dominant narrative seems to be that we will be getting all of these EVS on the roads. Not saying I believe that story will work out. But you put a trailer on an EV sedan and you lose 40% or so of your already short range. Heavy bullbars etc don't seem likely either. You're already carrying a 550 kg battery.

So this mammoth acq doesn't benefit from the current EV narrative, probably not worth factoring in growth by analysts. I can see why APG is being sold, but not why it is being bought. Caravans and RVs might have a lot of unmet demand ATM, but the outlook for hybrid RVs seems brighter according the the EV transition narrative, where range will be important for grey nomads.

Both GUD and APG are quality companies, and this acq fits in with GUD's plans to move more into the SUV market. However the extra hurdles for new oil projects, and its transition status might well hurt the SUV market outside of Toorak Tractorsville, and leave a lot of second hand heavier vehicles on the market. Satellites are flying over looking for fugitive emissions etc, and emissions have become part of trade negotiations it seems.

So anyway I don't like it!