View profile

Elm Analytics - Automotive Supply Chain Risk Digest #24 - July 22 - 28, 2017

Revue
 
 

Automotive Supply Chain Risk Digest

July 28 · Issue #24 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

​CHANGE IN MANAGEMENT
Longtime GM purchasing executive Bo Andersson is taking over as the new president of Yazaki Europe. He succeeds Horst Randolph as the head of the world’s biggest maker of wire harness systems.
INDUSTRY DIRECTIONS
Germany has legitimate concerns about the future of its automotive industry. Unease surrounds the diesel emissions scandal, the digitalization of jobs, and the disappearance of the combustion engine.
Chinese automotive start-ups Singulato Motors, CHJ Automotive, Hongxing Automobile Manufacturing Co, AIWAYS and WM Motor are developing an alliance to develop electric vehicle technology together. The country has put goals of 8% of all automaker sales to be battery electric or plug-in hybrids by 2018. These start-up alliances may point to a rapidly evolving and competitive future.
As cars continue to become more and more connected using technologies such as WiFi, Bluetooth, and LTE, automakers need to be aware of patent holders that will likely come looking for licensing fees. 
Israel’s mobility and automotive tech sector have been a focal point recently. Their venture capital firms have attracted large investments from traditional automotive companies. It is no wonder they are being compared to their Silicon Valley counterparts.
LITIGATION
Ariel Darvasi, a genetics professor at the Hebrew University of Jerusalem, will pay $854,000 to settle claims that he engaged in insider trading in Mobileye, ahead of its $15b takeover by Intel.
The FBI is investigating former FCA exec Al Iacobelli and late UAW President General Holifield for embezzling millions from FCA. They say that the pair secretly funneled money through a UAW training center and a fake children’s charity for their own personal gain.
MERGERS, VENTURES, ACQUISITIONS
U.S. buyout firm KKR will set up a joint venture with South Korea’s LS Automotive. LS Automotive makes switches and interior lamps for Hyundai, Continental, and Delphi. This deal follows its purchase of Nissan supplier Calsonic Kansei in November 2016.
ZF’s takeover talks with Wabco Holdings broke down this week.
Nichicon Corporation has licensed Qualcomm’s wireless electric vehicle charging technology for use in its own systems.
PLANT OPENING
Nexteer has opened a new manufacturing plant in Bekasi, Indonesia. The 32,000sf plant will provide electric power steering products SAIC-GM-Wuling Automobiles’ Indonesian subsidiary.
Bolta Group will open a factory in Tuscaloosa, Alabama by the end of 2018. Bolta manufactures integrated modules as well as individual parts, like nameplates and decorative trim.
PRODUCTION DECREASE
UK car production fell 13.7% in June compared to last year. Output has been falling for the last three months in line with a decline in sales.
PRODUCTION INCREASE
Because of growing demand for automotive grade polypropylene compounds in North America and India, Mitsui Chemicals is boosting production at sites in the US and Mexico.
Between 68 auto projects announced last year and new projects added this year, Alabama’s auto industry is getting over $1b in investments that will add hundreds of jobs. The projects include new companies in addition to expansions for existing companies.
REGULATION
EU antitrust officials have confirmed that they are investigating allegations of a cartel among a group of German automakers with Volkswagen, BMW, and Daimler all being implicated. BMW has rejected the report of emissions collusion while the others have refused to comment.
Another blow to diesel. A German court has backed a bid to ban diesel cars in Stuttgart, home to Bosch, Porsche and Mercedes-Benz. The ban, under study until 2018, would bar diesel cars on heavy pollution days.
Auto suppliers continue to oppose the proposed border taxes aimed at pressuring manufactures to move overseas factories to the US. House leaders are still expected to pursue the tax. The tax would raise revenue that would allow them to offset cuts to corporate and individual tax rates.
RISK ANALYTICS
IBM’s X-Force Red security testing division has started offering its expertise to automakers and Internet of Things companies. IBM believes that connected cars are high among the products that are most at risk from cyberattacks.
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