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Elm Analytics - Automotive Supply Chain Risk Digest #245 - October 15 - 21, 2021

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Automotive Supply Chain Risk Digest

October 22 · Issue #245 · View online

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


HUMAN CAPITAL
Stellantis is cutting production at its Windsor assembly plant down to one shift starting next spring. The shift cut will eliminate around 1,800 jobs at the plant.
VW has laid-off 1.5k workers at its Anchieta plant, in São Bernardo do Campo, Brazil.
LABOR DISPUTE
NUMSA, South Africa’s metalworkers’ union, has accepted a 3-year offer from SEIFSA. The 155k member organization’s strike affected output at BMW.
LITIGATION
A Michigan court has dismissed GM’s lawsuit against FCA, alleging that their bribing of union officials in 2015 for a better labor deal hurt GM’s position in its own bargaining agreement that year. Judge David Allen said that GM failed to show causation and harm.
Nippon Steel is suing its customer Toyota for $177M over an EV motor component it claims violates one of their patents. The part in question is supplied to Toyota by Chinese steelmaker Baosteel.
Opel will pay a fine of $75M in Germany for selling cars there with higher than reported emissions.
MERGERS, VENTURES, ACQUISITIONS
Stellantis and LG Energy Solutions are forming a new JV to build a new EV battery cell and module plant. The plants’ locations are TBA but will start production by Q1 2024.
Samsung has also inked a JV with Stellantis to produce EV batteries jointly. The venture will reportedly produce cells for the North American market at a plant in the US.
Ford will invest $316M at its plant in Halewood, England, to build EV parts. It will be the first European in-house location to make EV parts for Ford when production starts in 2024.
Plasman has acquired Minghua USA’s production facility in Greer, South Carolina. The location is a mold, paint, bonding, and assembly plant allowing Plasman to supply VW, BMW, and Volvo.
OPENING
Toyota this week announced a $3.4B investment to build a new EV battery plant in the US. Production will start in 2025.
American Battery Solutions will open an EV battery manufacturing facility in Lake Orion, Michigan.
DAG Technology will open a manufacturing facility in Grand Blanc, Michigan. The facility will produce decorative wheel trim.
Magna opened its second seating plant in Aleksinac, Serbia. The plant will produce seat trim and leather kits.
Brose opened production at its new plant in Pancevo, Serbia. The plant has two production lines and an adjoining R&D center. There, it will produce drives for fan modules and motors for steering and oil pump modules.
Li Auto acquired one of Beijing Hyundai’s plants in Beijing, China. Beijing Hyundai shut the plant down in April 2019.
PRODUCTION DECREASE
In its third production cut this year, Toyota will reduce its November production plan by 15%.
RAW MATERIALS
Japan steelmaker Tokyo Steel Manufacturing announced that they would raise the prices of some steel products by up to 4.9% in November.
RISK ANALYTICS
SHUTDOWN
VW is halting production lines at its Puebla, Mexico plant. Supply chain disruptions and COVID-19 continue to plague the plant.
Audi extended the lines shutdowns at its Neckarsulm and Ingolstadt plants in Germany.
Skoda Auto shut down production, leaving one working line in the Czech Republic. As the Czech Republic’s biggest exporter, it is a crucial part of the Czech economy. Its plants will decrease production or halt through the end of the year.
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