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Elm Analytics - Automotive Supply Chain Risk Digest #216 - March 26 - April 1, 2021

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Automotive Supply Chain Risk Digest

April 2 · Issue #216 · View online

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


CHANGE IN MANAGEMENT
Daimler has named former BMW and VW CEO Bernd Pischetsrieder as the new chairman of its supervisory board. Pischetsrieder has been a member of the board since 2014.
Stellantis has name current Opel/Vauxhall CFO Frederic Brunet as the new CFO for its expanded Europe region.
INDUSTRY DIRECTIONS
Daron Gifford of Plante Moran examines vulnerabilities exposed in the just-in-time production model.
LITIGATION
Honda is recalling nearly 761k vehicles globally over potentially faulty fuel pumps.
The U.S. International Trade Commission this week cleared South Korean battery maker SK Innovation of violating patents held by LG Energy Solution. This decision may have an impact on the ITC’s February ruling on a separate dispute that sided with LG and placed a 10-year import ban on SK’s products.
Volkswagen says a report that they would change their name to Voltswagen in the US was just an April Fool’s joke and some reporters aren’t happy…
MERGERS, VENTURES, ACQUISITIONS
Chinese smartphone maker Xiaomi is investing $10b to enter the EV market.
Brose and VW are establishing a joint venture to manufacture seating systems. Brose will acquire 50% of SITECH, a VW subsidiary.
PLANT DISASTER
Renesas Electronics says that the damage caused by a fire at its Hitachinaka, Japan plant last month is worse than first thought. The company says that it will take at least a month to resume production there, but replacing damaged machines could take several months.
PLANT OPENING
SK Innovation will build two EV battery plants in Silonsk, Poland. The new plants will join the two existing facilities and will produce separators.
Shenzhen Senior Technology Material is also building a separator film facility. Senior will break ground on the plant in Eskilstuna, Sweden, to supply Northvolt.
Interiors supplier SMP Automotive Systems is investing $4.2M into a new plant in Cottondale, Alabama. The new facility will be SMP’s third in the area.
PLANT SHUTDOWN
Stellantis is halting production at its plant in Melfi, Italy, from April 2-12 due to low demand due to COVID-19. The closure will put the plant’s 7,000 workers on furlough.
Ford will close several plants across the US and cancel overtime shifts due to the semiconductor shortage.
Stellantis is halting production at five of it’s North American assembly plants starting next week as a result of the global semiconductor shortage. The plants facing shutdown are in Warren, MI, WIndsor, ON, Brampton, ON, Toluca, Mexico and Belvidere, IL.
PRODUCTION DECREASE
IHS Markit expects chip and weather disruptions to affect the production of 1.3m vehicles. This loss is up from the prior 1m previously forecasted.
PRODUCTION INCREASE
Taiwan Semiconductor Manufacturing Co. says it will invest $100B over the next three years to increase its production capacity of semiconductors.
REGULATION
Chinese regulators plan to re-categorize low-speed EVs using lead batteries. The vehicles don’t currently need license plates. In September, these cars will need to run on lithium alternatives to lead batteries.
The Biden Administration unveiled an infrastructure plan that includes $174b to promote electric vehicle adoption. The program consists of tax credits, rebates, and other incentives. It also aims to have automakers build EVs and the batteries they run on in the US.
RISK ANALYTICS
April is looking much worse with compounding disasters: shipping container shortages, port congestion, plant fires, chip shortages, & terrible weather.
SUPPLY CHAIN
Backlogged container ship traffic in the Suez Canal resumed early this week after tugboats successfully re-floated the Ever Green, which had been stuck in the canal since March 23rd. Traffic in the canal is expected to return to normal by this weekend.
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