View profile

Elm Analytics - Automotive Supply Chain Risk Digest #214 - March 12 - 18, 2021

Revue
 
 

Automotive Supply Chain Risk Digest

March 19 · Issue #214 · View online

Weekly highlights of the events that impact supply chain risk within the automotive industry.


EARNING DIP
New car sales in Europe dropped by around 20% in February 2021 compared to February 2020.
HUMAN CAPITAL
VW plans to cut 4k jobs across six German plants, some by offering early retirement. It stated it was cutting overhead costs by 5% and procurement by 7% over two years in January.
INDUSTRY DIRECTIONS
VW also plans to switch to a unified prismatic battery cell for 80% of their EVs within two years.
Audi’s CEO said that it would no longer develop new internal combustion engines.
LABOR DISPUTE
The UAW says that Ford is violating its promise to add new products at its assembly plant in Avon Lake, Ohio, and is instead planning to add jobs in Mexico.
LITIGATION
Hyundai recalled 100k Genesis vehicles in the US and Canada over an antilock brake system issue that could cause an electrical short and start a fire.
Nissan recalled 127k vehicles in North America due to tires that may have been overcured.
MERGERS, VENTURES, ACQUISITIONS
Adient seating is selling its 50% interest in its Chinese JV Yanfeng Adient Seating to Yanfeng for $1.5B. It is part of their strategy to pursue the Chinese market independently.
GM’s self-driving unit, Cruise, has acquired autonomous vehicle startup Voyage. The deal will bring 60 new employees into Cruise that have experience in developing and running self-driving vehicles.
Foxconn is considering building EVs in Mexico or at its contentious Wisconsin factory.
Continental continues its restructuring effort and is making its “autonomous mobility” business area independent. The ADAS business unit will be at its core within the Automotive Technologies group sector.
PLANT CLOSING
Renault is looking to sell its iron-casting factory in Caudan, France. Corporate restructuring and lightweighting trends triggered the planned closure announced in May 2020. The plant makes exhaust manifolds, differential housings, and suspension arms.
PLANT OPENING
Geely will build a sizeable 42GWh battery plant in Ganzhou. Geely invested in EV battery maker, Farasis previously.
Autoliv is building a new airbag inflator plant in Chennai, India.
EV parts supplier UACJ Automotive is investing $60M into a new plant in Flagstaff, Arizona.
PLANT SHUTDOWN
Austin-based NXP Semiconductors resumed initial operations after shutting down on February 15th.
PRODUCTION DECREASE
Renesas Electronics’ said that shortages of automotive semiconductors would continue into late 2021.
PRODUCTION INCREASE
LG Electronics has aggressively expanded its VS division, nearly tripling production from 2017. The growth was in infotainment, powertrain, and telematics.
REGULATION
Different interpretations of how the regional content rules of the UCMCA roll up have spawned new lobbying efforts. Industry groups are pressuring the Biden administration for clarifications resulting in lower tariffs.
SUPPLY CHAIN
Toyota, Honda, and Volvo are cutting production in North America this week and next due to petrochemical and semiconductor shortages.
Did you enjoy this issue?
If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue
Elm Analytics, LLC - 280 Mill Street, Suite A, Rochester, Michigan 48307 USA