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Elm Analytics - Automotive Supply Chain Risk Digest #178 - July 3 - 9, 2020


Automotive Supply Chain Risk Digest

July 10 · Issue #178 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

GM has named Cadillac boss Steve Carlisle as its new Executive VP and President of North America. Carlisle is replacing longtime EVP and President Barry Engle.
New car registrations in Germany fell by nearly 35% in the first half of 2020. It is the lowest figure for a first half-year in Germany since the country’s reunification 30 years ago.
The UAW is on high alert following confirmation of 22 coronavirus cases at GM’s Arlington, Texas plant, and 12 cases at its Wentzville, Missouri plant since they reopened in late May. The union has already pressed the automaker to close the plants for health and safety reasons.
Elon Musk said this week that Tesla is “very close” to achieving Level 5 (i.e., completely driverless) autonomous vehicle technology. Musk added that he is “…confident that we will have the basic functionality for Level 5 autonomy complete this year”.
Several Ford employees have written a letter to the automaker raising concern about their manufacture of police vehicles. Members of Ford’s African-Ancestry Network, one of the automakers’ intra-office affinity groups, penned the letter.
GM’s racketeering lawsuit against FCA was dismissed “with prejudice” by a US District Court judge this week. Judge Paul Borman had previously ordered GM’s Mary Barra and FCA’s Mike Manley to resolve the matter in person, but an appeals court overturned that order on Monday.
The National Highway Traffic and Safety Administration has started an investigation into complaints of fuel leaks in 614k Chevrolets. The study involves 2008-10 Chevrolet Cobalts and 2008-09 HHRs.
Mercedes is recalling over 660K vehicles in China over a possible oil leak. The recall begins on Dec. 18 and affects several different models made between February 2013 and June 2017.
Mercedes has taken an equity stake in Chinese battery cell maker Farasis Energy (Ganzhou) Co. The automaker says the stake is part of a broader partnership with the manufacturer, focusing on the cells’ energy density and reducing charging times.
Daimler is looking to sell its Hambach plant in France, where it made the Smart Car.
Heavy rains and flooding rivers have shut down automotive plants in Japan.
  • Toyota - Miyata, Karita, and Kokura
  • Mazda - Ujina and Hofu
  • Daihatsu - Oita and Fukuoka
  • Suppliers Bridgestone, Denka and Kyushu
Ford may shut down plants in the US due to engine shortages from Mexico. Ford confirmed that facilities in Chihuahua have 50% employee attendance.
Mexico auto production and exports increased sharply in June compared to May. Production increased to 239K units from 22K units in May, and exports rose to 196K units compared to 15K units in May.
The European Automobile Manufacturer’s Association has written a letter to the EU asking for a six-month delay on the upcoming Euro 6 emissions standards. The letter states that the proposed postponement of the new rules set to take effect on Jan. 1, 2021, “will have no impact whatsoever on the emission level of the vehicles concerned or on air quality.”
EU antitrust regulators have extended their probe into the proposed FCA-PSA Group merger until Nov. 13, 2020. There is concern that the deal may hurt competition in small vans in 14 EU countries and the UK.
China is reportedly considering mandatory in-car air quality regulations. If implemented, it could increase costs for automakers importing vehicles from other markets without similar laws and force interior parts suppliers to tweak their products.
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