Season's Greetings 2023

Last year, I titled my Season’s Greetings with “What a difference a year makes!”

Well, the year 2023 would certainly qualify for the same. Trying to find a new one, I came up with

“From Zeitenwende to Krisenmodus” (from change of times to crisis mode)

In 2022 “Zeitenwende” was the word of the year. Now, followed by “Krisenmodus”. Well, not looking like things are going into the right direction. And the fact of the matter is, they do not. Neither in my beloved country nor the world as a whole.

The brutal and unprecedented massacre of Hamas to the Israeli people and the subsequent war with thousands of innocent victims in Gaza poses a tragic addition to the already terrible war in the Ukraine. And while the situation in Ukraine is already complex, the matter in the Near/Middle East is even worse since the conflict spreads into societies all over the world.

But not just military conflicts kept the world busy. The increasing nationalism all around the world is not exactly helpful for free and fair trade and thus, increasing the wellbeing of the people. In my home country Germany, economic stagnation, and a few homemade “coups”, like the Gebäude-Energie-Gesetz and an ongoing overbearing bureaucracy, affected the credibility of the public sector and helped right-wing populists to gain more ground. This brought back the label of the “sick man of Europe” to our country.

Well, and this brings me to the positives. How come that in such a “sick man” country, its equity index, the DAX, is reaching an all-time high?  How come, if Germany is so bad, it has been able to surpass Japan to the #3 spot of global economies? So, a lot must go well in Germany. And the things which don’t, are an opportunity to make it better.

Siemens Energy, one of the companies I have the honor to supervise as Chair, is one of those areas to improve. A chaotic policy making in renewable energy which drove all suppliers into significant losses and homemade problems have taken quite a toll on the company especially Siemens Gamesa, while all other divisions are performing well, thanks to the very dedicated people. Lots to do for a great management team and an extremely hardworking global Siemens Energy team.

In my other capacity as Chair of Daimler Truck, things look much better: record earnings and good growth, assembled by a strong global team. But also there, we have had our challenges. First, to overcome the tragic death of Jochen Goetz, one of the architects of the “New Daimler Truck” company. He will never be forgotten. The big shoes he left behind are just about to be filled. Watch out for the news in January. Secondly, while doing well in historic terms, the Truckers have a big transformation ahead of them: from combustion to all electric! Quite a challenge – but well prepared!

So, although in a troubled world, there are a lot of positive things happening. And at least some of the problems can become challenges and then opportunities.

I know, of course, that there are many people out there, who have not been blessed with being on the sunny side of life, who are struggling and don’t know, where to go. They deserve our help and encouragement. And there is this saying: “the world is always darkest before dawn”.

I do wish all of you and your loved ones, Happy Holidays and all the very best for 2024. And that the breaking of dawn may bring a better world in 2024 and the future.

Maybe “Aufbruchstimmung” ("spirit of optimism")can be the word of the year for 2024.

Let’s all work on it together.

All the very best

Joe Kaeser