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Elm Analytics - Automotive Supply Chain Risk Digest #193 - October 16 - 22, 2020

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Automotive Supply Chain Risk Digest

October 23 · Issue #193 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

CHANGE IN MANAGEMENT
Magna has named Seetarama (Swamy) Kotagiri CEO. Don Walker will retire at the end of the year after 33 years at the company.
HUMAN CAPITAL
Harman is reportedly cutting 1.5k positions as part of a reorganization effort.
INDUSTRY DIRECTIONS
Suppliers such as Foxconn and Magna-Steyr are positioning themselves as outsourced contract manufacturers. Magna has hinted that aspiring auto startups may convince the company to build a North American plant like its plant in Graz, Austria.
Suppliers such as Foxconn and Magna-Steyr are positioning themselves as outsourced contract manufacturers. Magna has hinted that aspiring auto startups may convince the company to build a North American plant like its plant in Graz, Austria.
Suppliers such as Foxconn and Magna-Steyr are positioning themselves as outsourced contract manufacturers. Magna has hinted that aspiring auto startups may convince the company to build a North American plant like its plant in Graz, Austria.
Motional and Lyft have resumed autonomous taxi service in Las Vegas. The COVID-19 pandemic halted service earlier this year.
Motional and Lyft have resumed autonomous taxi service in Las Vegas. The COVID-19 pandemic halted service earlier this year.
LABOR DISPUTE
Unifor ratified a 3Y contract with FCA. As part of the agreement, FCA will invest $1.2B to build new hybrid and electric vehicles at the Windsor Assembly plant.
The Canadian union has now moved to negotiations with GM with a deadline of November 4. The talks will center around securing new products for the St. Catharines plant, where it is phasing out a six-speed transmission production.
LITIGATION
Ford recalled 3.4K 2019-2020 Transit Connect vehicles related to the risk of an engine fire.
MERGERS, VENTURES, ACQUISITIONS
Continental is looking to sell its turbocharger division in a restructuring effort. The pandemic and shift toward electrification are taking a financial toll on suppliers.
Uber offered over $1B to buy Free Now, Daimler and BMW’s ride-hailing business.
PLANT EXPANSION
GM is spending $2B to revamp six plants to produce the electric Cadillac Lyriq. The bulk of the investment will be at its Spring Hill, Tennessee plant, with the remainder in Michigan.
BMW is expanding its Regensburg, Germany plant. The plant will initially coat battery cells and then transition to producing complete high-voltage battery modules.
Topy America has completed a $38M expansion of its Frankfort, Kentucky plant. The renovation of the steel wheel facility began in 2017.
IAC is expanding its Cottondale and Anniston, Alabama facilities. The sites produce door panels, overhead systems, trim, and instrument panels.
PLANT OPENING
Blackstone Technology is opening a battery cell production plant in Döbeln, Germany. The facility will focus on 3d printing and have a production capacity of 0.5 GWh/year.
PRODUCTION DECREASE
Automakers have been missing resupply deadlines due to lower production numbers. Absenteeism, supply chain issues, and changing health protocols have slowed manufacturing. Meanwhile, consumer demand has increased due to a pandemic-induced resurgence in private transportation and fueled by low-interest rates.
RAW MATERIALS
Aluminum has reached its highest prices since 2019. A weak dollar and rising demand from China has driven the growth.
REGULATION
New Jersey’s Department of Environmental Protection called for a ban on gas-powered cars by 2035. The proposal issued last week mirrored a similar initiative in California.
Automotive lobbying groups have been eyeing the upcoming US election for policy shifts. Though many of the groups have divided positions, all are looking for more certainty on trade and efficiency standards.
This week, FCA’s CEO Mike Manley called for the European Commission’s support to transition to electric vehicles. In a virtual seminar, he addressed the need for a charging station network and incentives to lead to lower carbon emissions.
The EU and the UK will resume Brexit talks. Automakers and industry groups have ramped up pressure to establish a free trade agreement.
SUPPLY CHAIN
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