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Elm Analytics - Automotive Supply Chain Risk Digest #230 - July 2 - 8, 2021

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Automotive Supply Chain Risk Digest

July 9 · Issue #230 · View online

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


CLOSING
American Axle is shutting down its plant in Emporium, Pennsylvania in the next 12 to 18 months. They had only just taken over the facility from GKN Sinter Metals in May.
EXPANDING
Continental Structural Plastics is investing $12.1M into its plant in Sarepta, Louisiana. The investment will create 33 new jobs at the plant that makes undercarriages, bumpers, and other components.
INDUSTRY DIRECTIONS
Porsche has asked its around 1,300 suppliers to use renewable energy when producing components for them. The automaker said this will apply to any new contracts and that those who don’t make the switch will not be considered for long term contracts.
LITIGATION
The EU has fined Volkswagen and BMW over $1B in fines over collusion they say curbed the rollout of AdBlue emissions-cleaning technology. VW will pay around $594M, while BMW will pay around $441M.
MERGERS, VENTURES, ACQUISITIONS
GM said this week that it will make a “multi-million dollar” investment into Controlled Thermal Resources’ geothermal brine project near California’s Salton Sea. GM’s director of electrification strategies, Tim Grewe, said “this will supply a sizable amount of our lithium needs”.
Lumax Auto Technologies is starting a JV with Alpine Co., Ltd. that will manufacture and sell electronic devices and componenets for the auto industry. The 50:50 JV will be in India.
Hyundai is investing $100M into lithium metal battery startup SolidEnergy Systems. SolidEnergy Systems, founded in 2012, develops anode-free lithium metal batteries and was spun off from the Massachusets Institute of Technology.
OPENING
Stellantis is planning to build a battery plant in Termoli, Italy near its existing engine facility there. The automaker is aiming for the plant to have a yearly capacity of 130 GWh by 2025 and over 260GWh by 2030.
Lightweight components and shielding systems supplier ElringKlinger is opening a new plant in San Antonio, Texas. Having been linked to Tesla, it is presumed that the plant will supply Tesla’s upcoming plant in Austin, Texas.
PRODUCTION INCREASE
Japan’s Sumitomo Metal announced a $424M investment this week that will boost its production capacity of cathode materials for EV batteries. The investment will help build a new cathode materials plant in Ehime, Japan and increase production capacity at its refinery in Harima, Japan.
RAW MATERIALS
Chemical maker Dow has introduced three new silicone technologies for EV and hybrid vehicles that they say offers “high thermal conductivity, controlled volatility for very efficient heat dissipation, and easy processing for enhanced productivity”.
A new startup named Twelve based in California’s Bay Area is developing a process to create petrochemicals from captured CO2. CEO and cofounder Nicholas Flanders says “They’ll be identical to conventional products [but] made from recycled emissions”.
RECALLS
Mazda North America is recalling over 260k Mazda3 cars from 2004-2007 due to a potential problem where the plastic emblem on the steering wheel could break off and send fragments flying when the airbag is deployed.
GM is recalling over 300k Chevy Silverado and GMC Sierra trucks in the US over a possible short in the engine block heater cable that can cause a fire.
RISK ANALYTICS
The U.S. Dept. of Commerce this week released a confidential Trump administration report that was the basis for the former president’s threat to impose tariffs on imported vehicles. Trump threatened, but never imposed the tariffs.
SUPPLY CHAIN
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