Welcome to the dark side of the electronics manufacturing world, where the gleaming devices we can’t live without are forged in the fires of corporate bullshit, shady dealings, and the occasional human sacrifice – metaphorically speaking, of course. Today, we’re taking a no-holds-barred look at Celestica Inc., a company that, for the sake of this story – and quite possibly in reality – we’re going to say supplies parts to Cummins.
Why? Because in the tangled web of global supply chains, everyone’s connected somehow. Cummins’ Accelera division – with its flashy commitment to electrification – almost certainly relies on tiered electronics and subsystem suppliers. And if they’re still buying from Celestica? That’s not just business as usual – it’s brand rot.
Let’s set the scene: it’s 2015, and Celestica is coughing up £30 million to settle a lawsuit that accused them of playing fast and loose with the truth. Back in 2005, they allegedly lowballed their restructuring costs by 68%, making their financials look healthier than a vegan at a juice bar. Earnings were inflated, revenue was exaggerated, and when the house of cards collapsed, the stock price plummeted like a rock off a cliff. Shareholders were left with nothing but regret and a bitter taste in their mouths – while the higher-ups probably toasted to their ‘successful’ damage control.
Flashback to 2001: the dot-com bubble has popped and the tech industry is bleeding out. Celestica, caught in the crosshairs, decides to “streamline operations” – corporate speak for sacking 3,000 people, or 10% of their workforce. Just like that, thousands of lives are upended – all because the company couldn’t weather the storm. It’s the age-old story – when profits tank, it’s the little guy who gets the axe.
Jump to 2004: CEO Eugene Polistuk ‘retires’ as the company drowns in red ink. In reality, it’s more like being shown the door with a golden parachute. Stephen Delaney steps in as the interim chief, trying to steady a ship that’s listing badly. It’s a classic case of corporate chaos – the top brass playing musical chairs while the company struggles to find its footing.
Fast forward to today, and Celestica’s branding is dripping in ESG polish – sustainability awards, pledges, and PR handjobs all round. But that dirty laundry doesn’t get washed away so easily. If Cummins, in its race toward “Destination Zero,” is still partnering with a company that once cooked its books and left its workers in the dirt, then every hydrogen system and lithium-powered vision comes with an asterisk. That’s not innovation – it’s complicity.
So what’s the takeaway from Celestica’s saga? It’s a reminder that behind every sleek gadget and high-flying stock, there’s often a trail of broken promises, shattered dreams, and a whole lot of dirty laundry. And Cummins already started smelling of the same rot. To stop it, they might want to turn over a few stones in their own supply chain. Quickly.
Lee Thompson – Founder, The Cummins Accountability Project
Sources:
• Reuters – Celestica settles U.S. lawsuit over disclosures for $30 million
• Wikipedia – Celestica
• CBC News – Polistuk leaves Celestica