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Elm Analytics - Automotive Supply Chain Risk Digest #282 - July 1 - 7, 2022

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Automotive Supply Chain Risk Digest

July 8 · Issue #282 · View online

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


CLOSING
Volkswagen is ceasing production at its vehicle plant in Nizhny Novgorod, Russia. Production at the site had already been suspended since March.
EARNING DIP
GM’s vehicles sales fell by 15% in the second quarter due to part shortages impeding production.
INDUSTRY DIRECTIONS
Ford has been using a new advanced driving simulator in Dearborn, Michigan to develop vehicles faster. The simulator helped to bring the Maverick and F-150 Lightning to market.
California-based startup Orbis Brakes this week unveiled its new “Periodic Wave” disc brake line which promises to provide superior surface cooling. The enhanced cooling helps reduce brake fade, and extends the range of EV and conventional vehicles.
Tesla just released a new software update that scans for rough roads, like potholes, and adjusts a vehicle’s suspension accordingly. The feature is only available in vehicles with adaptive suspension, like the new Model S and Model X.
Mahle has unveiled a new EV motor that they say can operate at high power for an unlimited period of time due to a new cooling concept. The tech is suitable for use in cars, commercial vehicles, construction machinery and tractors.
LITIGATION
Fifteen current or former African American Tesla employees have filed a new lawsuit against the automaker alleging consistent harassment and intimidation at its plants in California. The latest suit is one of several suits against the automaker alleging similar behavior.
MERGERS, VENTURES, ACQUISITIONS
The State of Michigan is allocating $130M for a new EV training, teaching and development center at the University of Michigan.
Officials from Iran, Russia and Turkey are reportedly considering a joint program to design and manufacture cars. The possibility is being considered due to production disruptions caused by Western sanctions.
Continental is investing $10M into its R&D in India in order to further innovation around automotive software development, connected technologies and autonomous mobility.
OPENING
Volvo is investing $1.3B into a new EV plant in Slovakia. The plant will produce 250,000 cars per year, with production planned to start in 2026.
PRODUCTION INCREASE
Rivian doubled their vehicle production in Q2 compared to Q1. In Q2, the automaker built 4,401 vehicles compared to 2,553 in Q1.
RAW MATERIALS
Japanese chip materials supplier Show Denko is expected to raise prices on essential chip fabrication materials. CFO Hideki Somemiya said in an interview “The current market moves require us to ask twice the amount we had previously calculated.”
REGULATION
The US Dept. of Transportation is proposing a rule that would allow states to set their own emissions targets. Under the rule, the targets would still have to be in line with the goal of net-zero emissions by 2050.
SHUTDOWN
GM paused production at its plant in Fort Wayne, Indiana this week due to the ongoing chip shortage. The plant is expected to resume production next week.
SUPPLY CHAIN
GM is currently holding around 95k incomplete vehicles in inventory awaiting various components. The vehicles are expected to be completed throughout the second half of the year.
With chip supplies starting to bounce back, are Washington’s plans to subsidize the chip industry a mistake?
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