Wetteri announced that Aarne Simula is returning as CEO and Pietu Parikka has been dismissed. The decision was correct, albeit overdue. Parikka’s tenure as CEO will go down in history as a peculiar performance. Wetteri possesses the country’s most extensive sales network and dealerships that many competitors eye with envy, and the sale of new cars automatically generates a flow of used cars. This is the basic logic of the industry that every car trade professional knows. Yet, during Parikka’s time, this very strength was not utilized—the strength was seen as a weakness, and resources were directed where Wetteri has no particular competitive advantage. Conversely, weaknesses were seen as strengths.
How is such strategic blindness possible? That is a question shareholders deserve an answer to. A forced smile is no substitute for industry knowledge and professional skill; that is a fact.
Simula identifies the situation clearly—the volume of new cars is growing, it produces used cars, and that creates a profitable cycle. It’s not rocket science, just car trading. Over 40 years of experience shows that the fundamentals are well understood.
Hopefully, Parikka did not manage to cause irreversible damage, as has been seen in his previous roles. Strategic errors are not always fixed by a mere change of leadership, and there may be traces left in principal relationships, personnel, and margins that will only become apparent later.
Wetteri has the prerequisites to turn things around, as long as they now know how to use them.