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Elm Analytics - Automotive Supply Chain Risk Digest #194 - October 23 - 29, 2020

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Automotive Supply Chain Risk Digest

October 30 · Issue #194 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

CHANGE IN MANAGEMENT
Ford has promoted former UK sales boss Lisa Brankin to be its new head of operations in the UK. Brankin’s current role as the head of passenger vehicles in Britain and Ireland will go to the current head of customer service Anthony Ireson.
EARNING DIP
Tata Motors posted a $43m loss in Q3 of this year. Analysts believe sales are unlikely to return to pre-pandemic levels for at least four years.
VW has returned to profitability 3Q through cost-cutting and a strong Chinese market.
INDUSTRY DIRECTIONS
The US Department of Energy announced $15m funding for battery manufacturing innovation projects.
FCA and PSA have setup an “emissions pool” ahead of their pending merger that will allow the automaker to combine their sales in order to meet EU emissions rules. The pool is open for other automakers to join, with a deadline of Nov. 26.
LITIGATION
Uber and Lyft lost in California court again late last week as a panel of appellate judges upheld a new state law that says the ride-hailing companies must classify their drivers as employees. The companies’ only hope is for voters to pass a ballot initiative next week to block full implementation of the new law.
VW has recalled 218k Jettas to fix fuel leak problems.
China has recalled nearly 50k Tesla Model S and X cars over suspension issues.
MERGERS, VENTURES, ACQUISITIONS
Aston Martin has more stability by gaining help from Mercedes-Benz. The automaker will assist Aston Martin in the development of EVs in exchange for an expanded stake in the company.
French automotive cabling supplier Delfingen is acquiring Schlemmer’s European and African operations. The division produces injection molded parts for protecting cables.
Mahle is buying Keihin Corporation’s air conditioning business in the US, Japan, and Thailand.
Fiat Chrysler and PSA expect to get EU approval for their merger before the end of the year.
VW’s Traton and Toyota’s Hino are partnering on commercial EV truck development.
PLANT EXPANSION
Toyota Industries Compressor Parts America is adding 15k sq ft to its Jackson County, Georgia plant. The supplier manufactures DC/AC inverters and electronics for air conditioner compressors.
Yanfeng will expand its factory in Kragujevac, Serbia, adding 800 employees to its existing 230 by the end of 2023.
PLANT OPENING
ZF has opened a new electronics manufacturing facility in Częstochowa, Poland.
PRODUCTION DECREASE
Vehicle production in the United Kingdom declined to its lowest levels in 25 years. The added stresses of coronavirus and Brexit have the potential to affect the industry further.
PRODUCTION INCREASE
Production at Toyota’s North American plants is running at 94% capacity compared to last year. In a recent call, hybrid battery supply was one of the few constraints executives noted.
REGULATION
Congress has begun work on autonomous vehicle legislation, charging infrastructure, and battery technology. US lawmakers are targeting early 2021 for the new bill.
RISK ANALYTICS
Battery makers have become a chokepoint in EV supply chains. Production shortages, intellectual property disputes, and a string of recent recalls have put incredible pressure on choosing the right suppliers.
SUPPLY CHAIN
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