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Elm Analytics - Automotive Supply Chain Risk Digest #252 - December 3 - 9, 2021

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Automotive Supply Chain Risk Digest

December 10 · Issue #252 · View online

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


EXPANDING
Auto electronics maker EOI Pioneer is investing $14M into its plant in Dundee, Michigan.
Ford is investing $900M into its plants in Thailand to modernize them. Improvements include doubling the number of robots at its plants and adding as many as 1,250 new jobs.
GM will invest $50M into its Bedford, Indiana plant to build drive unit castings for the new Chevy Silverado EV. Renovations will begin immediately.
GM also announced it will build an addition to produce battery packs at its Orion Assembly plant.
INDUSTRY DIRECTIONS
The Center for Automotive Research recommends reviewing the EPA’s 2021 Automotive Trends Report. The recent shift for automakers to rely on carbon offset credits is of interest.
MERGERS, VENTURES, ACQUISITIONS
GM is partnering with rare earth mining company MP Materials to build a new plant in Fort Worth, Texas. The plant will produce rare earth magnets for use in electric motors.
Toyota has reportedly teamed up with Chinese automaker BYD to launch a small EV in China late next year. A source said that the collaboration has “helped us resolve challenges we had faced in coming up with an affordable small electric sedan.”
Rheinmetall will fully acquire its Pierburg Mikuni Pump Technology JV. The plants in China and Japan produce coolant pumps.
OPENING
Toyota is investing billions into an EV battery plant in North Carolina. The plant will employ around 1,750 workers from 2025 to 2029 and start production in 2025.
Not too far away, Arrival will build an EV battery assembly plant in Charlotte, North Carolina. Its nearby van microfactory and bus production facility in Rock Hill, South Carolina, will use the battery modules.
South Korea’s EcoPro will build an EV cathode production facility in Debrecen, Hungary.
PRODUCTION INCREASE
BMW plans to add a Saturday shift to increase production at its plant in Munich, Germany. Demand for the i4 EV is “higher than expected.”
RECALLS
Honda recalled 789k SUVs and pickups over hoods that can fly open while driving.
REGULATION
Marketplace Tech interviewed US Secretary of Commerce Gina Raimondo on the CHIPS for America Act.
President Biden signed an executive order this week to end the federal purchase of gas and diesel-powered vehicles by 2035.
Officials from top auto industry groups in Mexico say that Biden’s domestic EV tax credit could spark retaliatory tariffs and a trade war. They say the credit is “discriminatory.”
Following Canada and Mexico, the EU is now raising “strong concerns” over Biden’s infrastructure bill’s domestic EV tax credits.
RISK ANALYTICS
The lead time for chips increased by four days in November compared to October. Lead time is now around 22.3 weeks.
SHUTDOWN
Toyota shut down production at two plants Wednesday in Japan due to a supply shortage.
SUPPLY CHAIN
Stellantis sidestepped its traditional Tier 1 suppliers to deal directly with chipmaker Foxconn. “We, the auto industry, were supposed to be protected by our Tier 1s from this kind of situation,” CEO Carlos Tavares said. “The discussion with Tier 1s is, ‘What are you doing on your side to make sure this doesn’t happen again?’”
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