From CityAM, July 8:
Siemens Energy’s management board has set up a task force to establish the scope of deepening problems at its crisis-ridden wind turbine division, including quality issues at its two most recent onshore platforms, two supervisory board sources said.
The investigation into the problems, which were unveiled in June and caused Siemens Energy’s shares to plunge by 37 per cent, is flanked by a separate special committee consisting of members of Siemens Energy’s supervisory board, the sources said.
One key question it will deal with is why Siemens Energy’s leadership failed to spot the issues during the due diligence process ahead of its recent takeover of the remaining stake in the troubled division, Siemens Gamesa, the people said.
While the supervisory board continues to back both Siemens Energy chief executive Christian Bruch and Siemens Gamesa chief executive Jochen Eickholt, that could change should the investigation show that management should have noticed the problems during due diligence, the people said.
The latest problems caused Siemens Energy, in which Siemens AG still owns a direct 25.1 per cent stake following a spin-off in 2020, to withdraw its 2023 profit outlook and flag more than a billion euros in costs to fix quality issues....
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Ultimately the CEO is a corporation's chief risk officer. I've forgotten who said that but it sure struck a chord.
Sounds like Buffett but maybe not. And if it is Uncle Warren, I can't remember where or when he said it.
