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Elm Analytics - Automotive Supply Chain Risk Digest #219 - April 16 - 22, 2021


Automotive Supply Chain Risk Digest

April 23 · Issue #219 · View online

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

Hyundai has named Apple and Microsoft alum Song Chang-Hyeon as the chief of its new mobility division. The goal of the new division is to increase alliances and cooperation with mobility companies around the globe.
Semiconductor Shortage:
This week, governors from 12 US states called on President Biden to end sales of new gasoline-powered vehicles by 2035.
Last week, the UAW publicly called on GM to pay full union wages at new EV battery plants. GM said wages would be determined by Ultium Cells, its JV with LG.
GM laid off 1.4k workers at its Talegaon plant in India, invoking section 25 of the Industrial Dispute Act. The GM Employees Union is challenging the move. The plant ceased production at the end of last December.
In Michigan late last week, a federal judge denied a request for an emergency order forcing NXP Semiconductors to provide chips to Stellantis supplier JVIS. Judge Stephanie Dawkins Davis said issuing the order could harm other companies desperate for chips and result “in a line at the courthouse.”
Subaru recalled nearly 875k cars and SUVs in the US due to engines that can stall or a rear suspension part that can fall off.
GM/LG joint venture Ultium Cells is investing over $2.3B to build its second battery cell plant in Spring Hill, Tennessee. The 2.8M sf plant will open in late 2023.
Semiconductor shortage:
  • Ford will shut down production for two weeks starting May 3 at Flat Rock, Chicago Assembly, and Kansas City plants. Facilities in Germany, Romania, Spain, and Turkey will also shut down or run at reduced capacity.
  • Stellantis’ Windsor, Ontario minivan assembly plant’s opening has been pushed back to May 3 (formerly April 26).
  • Subaru suspended vehicle output at its only US vehicle plant in Lafayette, Indiana. Production will resume on May 3.
  • JLR is shutting down its Halewood factory from April 26. The plant in Merseyside, England, produces Land Rover’s best-selling SUVs.
Production is down at Stellantis’ Ram pickup truck plant in Sterling Heights, Michigan, due to around 10% of the workforce being absent due to COVID-19. Production fell between 200 and 300 vehicles short of its daily build number.
As part of its new infrastructure plan, the Biden administration is proposing an investment of $15B towards installing 500k EV charging stations in the US.
Washington state passed a new bill aiming to stop the sale of gas vehicles starting in 2030. The goal is even more ambitious than California’s plan to stop gas car sales by 2035.
Analog speedometers are replacing digital ones on the Peugeot 308. The semiconductor shortage has Stellantis using the chips for dashboards on more popular models.
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