View profile

Elm Analytics - Automotive Supply Chain Risk Digest #153 - January 10 - 16, 2020


Automotive Supply Chain Risk Digest

January 17 · Issue #153 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

Chinese EV maker BYD has hired former GM China head, Kevin Wale, as a senior adviser to company chairman Wang Chuanfu. Wale worked at GM for 32 years before his retirement in 2012.
China’s auto sales fell by 8.2% in 2019, according to data from the China Association of Automobile Manufacturers (CAAM). Sales in the country have dropped for 18 months in a row.
The new Mazda Toyota plant in Huntsville, Alabama, has opened up its job application portal and is looking to hire 3k production team members. The 3.7M sf plant will eventually employ around 4k people.
PSA division Opel is cutting up to 4.1k jobs in Germany at is factories in Ruesselsheim, Eisenach and Kaiserslautern. The automaker will open a voluntary leave program to cut 2.1k by 2025 and then will have the option to cut another 2k through 2029.
Fulfilling one of the promises of its new labor deal with the UAW, GM will transition more than 1,350 hourly employees in the U.S. to full-time roles in the first quarter of this year.
Germany plans to provide wage subsidies to automotive manufacturers if the sector continues to struggle.
Toyota Motor Europe has announced that it used 100% renewable electricity across all of its European facilities in 2019. The automaker’s European operations include nine manufacturing plants, 14 parts depot centers, seven vehicle logistics centers, 29 national marketing & sales companies, their head office and its branch offices, and the Toyota technical center.
German prosecutors have filed charges against six VW employees for their role in the diesel emissions scandal. The employees worked at the carmaker between 2006-2015 and were below the management board level.
Toyota recalled 696k Toyota and Lexus vehicles from 2018-19 over a problem that could cause the fuel pump to fail and lead to a potential stall.
FCA is entering a 50-50 joint venture with China’s Hon Hai to produce vehicles for the Chinese market. Hon Hai, the parent of Foxconn, has focused its investments on NEV and future mobility trends.
Windsor’s Concours Mold acquired the assets of nearby Valiant Tool and Mold. The company manufactures plastic automotive component molds.
Ford is investing $82M to expand its plant in northern Vietnam to increase its production capacity. The investment will expand the facility by over 645k sf.
GM will expand its capabilities at the Spring Hill. Tennessee and Tonawanda, New York engine plants. Spring Hill will increase the production of truck / SUV V8 engines. Tonawanda will upgrade the production system, improving efficiencies.
South Korean EV battery maker SK Innovation is planning to build a second battery plant at its currently under construction production site in Georgia. The plant aims to have a production capacity of 10GWh and would require an investment of around $1B.
Volvo is planning to build a new EV battery plant at its campus in Ridgeville, South Carolina. The plant is part of a $600M investment in Ridgeville and will open in early 2022.
The European Union is planning to shift a quarter of its budget ($1.1T) towards fighting climate change and making the economy more environmentally friendly over the next ten years. The investment aims to make the bloc the world’s first carbon-neutral continent by 2050.
New Jersey lawmakers have passed a bill that would give consumers a rebate of up to $5k for the purchase of a new EV priced at $55k or less. The law would also provide up to $500 for in-home vehicle chargers.
The U.S. and China have signed a new trade agreement aimed at easing the trade war that has rattled the global economy. China will boost U.S. imports by $200B above 2017 levels and strengthen intellectual property rules while the U.S. has agreed to halve some of the new tariffs it has imposed on China.
The U.S. Senate has overwhelmingly approved the new U.S.-Mexico-Canada trade agreement by a vote of 89-10. Senate majority leader Mitch McConnell called it “a major win for our country.”
Plunging prices, slow subsidies, and increased competition have wiped out half of China’s EV battery makers.
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