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Elm Analytics - Automotive Supply Chain Risk Digest #176 - June 19 - 25, 2020


Automotive Supply Chain Risk Digest

June 26 · Issue #176 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

Jason Industries, the parent company of Osborn and Milsco, has filed for Chapter 11 bankruptcy. The metal finishing and seating system manufacturer has begun the process of restructuring.
German iron caster Dieckerhoff Guss GmbH has begun protective shield proceedings.
Forgings supplier Sona BLW Gmbh has filed for bankruptcy. The board chairman, Sunjay Kapur, says that the company has been in “…self-administered insolvency since January” and that it is “…an opportunity to restructure the business and bring down costs.”
Hyundai Motor Europe has named Michael Cole as its new President & CEO. Cole has held various senior management positions at Kia over the last 11 years, most recently as President of Kia Motors America.
Over 100 workers at Volkswagen’s Puebla, Mexico facility contracted COVID-19. 45% of the factory’s 11k workers were tested. Puebla is one of the most affected areas in Mexico and has delayed factory reopenings.
GM will eliminate the third shift at its plant in Spring Hill, Tennessee, resulting in a loss of 525 jobs. Employees with the highest seniority will be protected and moved to either the first or second shift.
BMW will not renew agreements with 10k contract workers. This move comes at a time when the company intends to eliminate 5k non-contract employees.
Detroit automakers made their strongest show ever in JD Power’s latest vehicle quality survey, beating out the usually dominant Japanese automakers. The Big Three benefitted from recent changes to the study that included more questions about newer vehicle technologies.
FCA recalled 95k Jeep Cherokees worldwide due to a faulty transmission that can cause an unexpected loss of power. The recall covers Cherokees built between 2014-2017 as well as 2,700 replacement parts.
BMW and Daimler announced this week that they would put their previously announced automated driving alliance on hold, saying that they will each “concentrate on their existing development paths.” They added that their work together might resume at a later date.
BMW and Great Wall Motor have begun construction on a new $721M JV plant in Zhangjiagang, China. The plant will be a 50-50 partnership between the two automakers and will build both gasoline and electric vehicles.
Metal parts supplier Gestamp is closing two of its five plants in the UK due to a drop in vehicle sales. Gestamp closed its Fareham, England plant in March and will close its plant in Washington, England, in 2021.
Magna International is investing $35.4M into its plant in Highland Park, Michigan, supporting new seating contracts over the next three years.
Tesla plans to expand its “small-scale” battery manufacturing facility in Fremont, California. In the past, it partnered with other companies at its cell producing locations.
The Chinese government has begun relaxing regulations on electric and hybrid vehicles. This move is intended to help automakers cope with economic changes due to the coronavirus pandemic.
Britain is introducing new license plates sporting a bright green stripe for electric vehicles. The new plates were designed to promote cleaner technologies as the country targets net-zero emissions by 2050.
Nevada announced it would adopt California’s zero-emission vehicle mandate and tailpipe emissions rules. The regulations’ adoption comes despite the Trump administration’s move towards stripping states of the right to implement such requirements.
The US House of Representatives has introduced a new $1.5T reform package, dubbed the Moving Forward Act, that would provide funds towards rebuilding American infrastructures such as roads, bridges, and transit systems. The bill would also provide funds and set new mandates for auto safety and security.
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