View profile

Elm Analytics - Automotive Supply Chain Risk Digest #121 - May 31 - June 6, 2019

Revue
 
 

Automotive Supply Chain Risk Digest

June 7 · Issue #121 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

CHANGE IN MANAGEMENT
No less than eight Nissan executives have left in the past five months.
INDUSTRY DIRECTIONS
GM is partnering with Michelin to introduce airless tires on passenger vehicles by 2024. Real-world testing of the new tire tech will start this year in Michigan.
LABOR DISPUTE
Renault Samsung’s workers kept the engine production line running despite the union leaders call to strike.
LITIGATION
Chinese regulators have imposed a $23.6m fine on Ford’s JV with Changan Automobile for antitrust law violations. China’s State Administration for Market Regulation says the automaker set minimum resale prices on its cars sold in Chongqing.
A US appeals court in California has restored a $210m nationwide class-action settlement for hundreds of thousands of Hyundai and Kia owners whose fuel economy estimates were inflated. The decision reverses a January 2018 ruling decertifying the agreement.
MERGERS, VENTURES, ACQUISITIONS
Fiat Chrysler has withdrawn its offer to merge with Renault. FCA cited political conditions in France as the reason the two-week-old deal fell apart. France is Renault’s largest shareholder.
BMW and Jaguar Land Rover will work together on developing next-generation electric motors, transmission and power electronics. The automakers say they will save costs through shared development, production planning, and joint purchasing.
Subaru and Toyota are partnering up to develop a new electric vehicle platform. The automakers will jointly develop a compact SUV to be sold under both brands.
PLANT CLOSING
Ford is closing its UK engine plant in Bridgend, Wales by 2020. The closure will put 1,700 employees out of work.
PLANT EXPANSION
Samsung subsidiary Harman is investing $50m into the expansion of its automotive electronics plant in Chakan, India. The development will triple the plant’s production capacity by 2021.
PLANT OPENING
China’s Great Wall Motor has opened its new $500m assembly plant in Russia after five years of construction. The plant will produce up to 150,000 vehicles a year initially.
Tiberina Group purchased 10 acres of land at the former American Axle plant in Detroit. The company supplies body-in-white and metal stampings
Daechang Seat Co., Ltd. USA is opening a $9m plant in Phenix City, Alabama. The plant will produce automotive seat frames and create 100 jobs.
BMW opened its first assembly plant in Mexico this week. The opening comes just a week after President Trump’s current tariff threat on Mexican imports.
PRODUCTION DECREASE
UK vehicle production fell nearly 45% in April, down 23% for the year.
REGULATION
After two days of meetings in Washington this week, the US is still planning to move forward with a 5% tariff on Mexican imports. The White House is looking for Mexico to crack down on the flow of undocumented migration from Central America.
Did you enjoy this issue?
If you don't want these updates anymore, please unsubscribe here
If you were forwarded this newsletter and you like it, you can subscribe here
Powered by Revue
Elm Analytics, LLC - 280 Mill Street, Suite A, Rochester, Michigan 48307 USA