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Elm Analytics - Automotive Supply Chain Risk Digest #187 - September 4 - 10, 2020

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Automotive Supply Chain Risk Digest

September 11 · Issue #187 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

CHANGE IN MANAGEMENT
PSA Group has named Renault veteran Arnaud Deboeuf as its new EVP of manufacturing and supply chain. Deboeuf is taking over for Yann Vincent, PSA’s CEO, and Total’s recently announced JV Automotive Cell Company.
Renault has named current its current Eurasia region chairman Nicolas Maure as its first-ever chief turnaround officer. While in the new position, Maure will retain his post as head of Eurasia.
EARNING DIP
UK auto sales fell by 6% in August. One bright spot has been EVs, where registrations rose 77% last month.
HUMAN CAPITAL
Engine component maker Schaeffler is cutting 4.4k jobs across a dozen sites in Germany and two sites elsewhere in Europe. The supplier will close or sell its plants in Wuppertal, Eltmann, and Clasthal-Zellerfeld, Germany, as part of the cuts.
INDUSTRY DIRECTIONS
Uber says that 100% of its drivers will use EVs by 2040. The ride-hailing company will invest $800M through 2025 to help drivers make the switch.
LABOR DISPUTE
Canadian auto union Unifor has selected Ford as the target company for which it will pattern its deals with FCA and GM on during this year’s contract talks. The union’s contracts with the Big 3 expire on Sep. 21.
LITIGATION
A court in Germany granted an injunction that could prevent Daimler AG from selling vehicles. The ruling confirms that Daimer used patented technology from Sharp without a license.
Former Volkswagen CEO Martin Winterkorn was charged with commercial fraud for his role in the diesel-emissions cheating scandal. The court in Brunswick, Germany, said that Winterkorn, along with four other managers, could also be tried for acting as a criminal gang.
Joon LLC / Ajin USA pleaded guilty to federal charges related to a 2016 death at its stamping plant in Cusseta, Alabama. The accident occurred when a robotic arm struck an employee troubleshooting machinery. The company admitted to willfully allowing employees to ignore OSHA safety rules.
MERGERS, VENTURES, ACQUISITIONS
PSA Group and French energy company Total are forming a new JV to build battery cells in France and Germany. The new company’s factories, which will be named Automotive Cells Company, are planned to be operational sometime in 2023.
GM has announced a $2B deal with EV truck startup Nikola wherein the legacy automaker will build the new Nikola Badger truck and provide batteries and fuel-cell systems for that truck and the Class 7 and Class 8 semi-trucks that Nikola is developing.
PLANT OPENING
Hitachi Automotive Systems is establishing a new EV motor company and modern production lines at its existing Berea, Kentucky facilities. Hitachi Automotive Electric Motor Systems will develop, manufacture, and sell EV motors starting in 2022, depending on the impact of COVID-19.
PRODUCTION DECREASE
Auto production in Mexico fell by 13.15% in August compared to August of the last year. Auto exports also decreased by 8.59% in the same period.
RAW MATERIALS
Europe and the US introduced legislation to reduce dependence on China for rare earth materials this past week.
REGULATION
Two alliances (Global Alliance for Vehicle Data Access and Alliance for Automotive Innovation) are on opposite sides of who controls access to vehicle telematics data - the vehicle owner or the manufacturer.
SUPPLY CHAIN
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