Nortel’s Chahram Bolouri just can’t seem to stick to the assigned speaking points. He tries to pacify people by saying that Nortel’s decision to sell off the last of its manufacturing plants is about more than money, then goes to say, in clarifying comments, that it is mostly because of the money. I have added my own emphasis throughout:
“I think it is important to manufacture my product where I sell my product, otherwise it costs us a lot of money to ship product from one end of the world to the other end. It is not just about the money, it is a deal that will give us the agility we are looking for in terms of cost and time to help our customers.”
Another benefit, he said, is that Nortel will have more financial flexibility because it will have less cash committed to inventory. Mr. Bolouri said it is too early to talk about how much Nortel will reduce its costs after the last plants are sold.
I have no problem, of course, with the company’s cost-cutting in manufacturing. I just wish Bolouri didn’t feel like he had to apologize for it.