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Elm Analytics - Automotive Supply Chain Risk Digest #198 - November 20 - 26, 2020

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Dear Friends, This year has been a doozy. And while it was full of uncertainty, it did teach us a thi
 

Automotive Supply Chain Risk Digest

November 27 · Issue #198 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

Dear Friends,
This year has been a doozy. And while it was full of uncertainty, it did teach us a thing or two.
It reminded us of the importance of community. It was a lesson in gratitude and a humbling reminder of how lucky we are to be here and now in this important time.
We are profoundly grateful to all of those who have made it possible. And there are many.
This holiday season, we want to call out our amazing and dedicated crew at Elm Analytics, our talented partners, and, of course, our endlessly supportive customers.
So, to each and every one of you, a heartfelt “Thank You.” 
We honestly can’t say it enough.
With gratitude,
Steve & Nick

BANKRUPTCY
China’s Huachen has defaulted on almost $1b in debt obligations. Huachen is the parent company of Brilliance, BMW’s Chinese joint venture partner. Reuters digs into how its management squandered opportunities and made poor decisions.
CHANGE IN MANAGEMENT
Ford has named former eBay marketing head Suzy Deering as its new CMO.
HUMAN CAPITAL
Renault’s unions have approved the automaker’s plan to cut 2,500 white-collar jobs. Renault is hoping to cut an additional 2,100 blue-collar jobs at a later date.
INDUSTRY DIRECTIONS
Economists believe the auto industry will continue its upturn in 2021 through 2022.
Analysts believe that China and other emerging markets’ EV sales will mark the end of the “Oil Era.”
LABOR DISPUTE
Toyota has halted operations at its assembly plant in Bidadi, India, due to an ongoing worker strike. The union has demanded the withdrawal of the suspension of a worker.
LITIGATION
Tesla is issuing two recalls covering around 9.5k vehicles. The first covers Model X cars from 2016 with roof trim that may separate, while the second covers Model Y cars from 2020 that may have improperly tightened bolts.
Despite their petition to avoid a recall, the NHTSA says that GM must recall 5.9M trucks and SUVs from 2007-2014 due to faulty Takata airbag inflators.
MERGERS, VENTURES, ACQUISITIONS
Chemical company Ineos is partnering with Hyundai to increase the volume of hydrogen fuel cell vehicles they can make.
PLANT CLOSING
During his keynote speech at the European Battery Conference, Elon Musk revealed Tesla’s plan to build the world’s largest EV battery plant in Brandenburg, Germany. The plant would have an initial production capacity of 100gWH with the potential to expand to 200-250gWH.
PLANT RELOCATION
Sweden’s Autoliv will relocate production and inflator-related engineering from Vargarda, Sweden, to existing Romania and France locations.
PRODUCTION DECREASE
Plants in Chihuahua, Mexico, have returned to the red light, allowing them to only operate Monday - Friday at 60% capacity.
REGULATION
GM is reversing course and will no longer back the Trump administration’s efforts to restrict California’s ability to set its own emissions rules. The automaker is now going to work with President-elect Joe Biden.
In an effort to prevent “greenwashing,” the EU is considering changes to auto emissions limits to qualify as “sustainable” investment finance rules.
Analysts predict a no-deal Brexit would cost the UK automotive sector $73B.
Despite their plan to ban new gas and diesel-powered cars starting in 2030, the British government will allow hybrids to be sold until 2035.
The UK signed an interim trade deal with Canada late last week in preparation for Brexit. The UK says the agreement paves the way for future negotiations on a new tailor-made agreement between them.
RISK ANALYTICS
Analytics firm LMC Automotive says new coronavirus lockdowns in Europe will lead to the loss of around 300k new car sales.
SUPPLY CHAIN
The EU believes it will be self-sufficient in the production of EV batteries by 2025. Currently, 80% of lithium-ion cell production occurs in China.
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