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Elm Analytics - Automotive Supply Chain Risk Digest #288 - August 12 - 18, 2022


Automotive Supply Chain Risk Digest

August 19 · Issue #288 · View online

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

Stellantis NV is considering reworking its factory in Saltillo, Coahuila, Mexico to produce EVs.
ZF is investing $100M to increase capacity at its plant in Zhangjiagang, China, with plans to start production in 2024.
We’ve all known automotive supply chains have been under tremendous financial stress. Now, suppliers at all Tiers are finding themselves trying to keep the lights on. High material prices and parts shortages are leading to bankruptcies, contract renegotiations, and cash infusions. Automotive News explores the current state of the industry in: Auto suppliers are asking for contract relief
Workers at VW’s plant in Puebla, Mexico, are being asked to vote again on whether to approve their union’s deal for a 9% pay raise. The workers initially rejected the deal last week, with 70% of eligible workers casting ballots.
VW will supply Mahindra with its MEB platform-related components. This agreement will make Mahindra VW’s second-largest customer of the MEB platform after Ford.
South Korea’s SK Innovation is investing $100M into US-based EV charging company Atom Power. The North Carolina-based company has developed a new digital circuit breaker that provides more control and flexibility for EV charging.
Hyundai Mobis is considering separating its modules and key parts production units.
EV battery maker CATL has announced plans to build a new $7.4B, 100 GWh battery plant in Debrecen, Hungary. The plant will supply European automakers such as Mercedes-Benz, BMW, Stellantis, and Volkswagen.
China’s BYD is investing $4.1B into a lithium mine and EV battery plant in Yichun, China. The battery factory will have an annual capacity of 30 GWh, while the mine will be able to produce 100,000 tons of lithium annually.
Ultium Cells “is developing a competitive business case for a potential large investment that could be located in New Carlisle, Indiana.”
Ascend Elements will open a battery materials facility to produce cathode active material in Hopkinsville, Kentucky.
BCS Automotive Interface Solutions has opened a new $60.2M plant in El Marques, Mexico. The plant is currently making wireless electric chargers and will also make components such as steering control modules, complex switches, electrical interface control panels, and more.
Eurocell has settled on the Netherlands for its new Gigafactory. The aim is to produce 40M cells/year by 2025.
Italvolt plans to make MNC (nickel, manganese, cobalt) lithium-ion cells at the plant it is building in Scarmagno, Italy.
BayoTech is planning to build a modular hydrogen production hub at the American Center for Mobility.
Rivian is adding a second shift at its Normal, Illinois plant to try and meet its 25k vehicle production target for 2022. The automaker is already well behind, with only around 7k vehicles made in the year’s first half.
GM recalled nearly 500k SUVs due to potentially faulty seatbelts that “may not properly restrain.” The recall covers 2021 and 2022 models of the Suburban, Tahoe, Escalade, and Yukon.
After receiving 50 complaints from owners, NHTSA has opened an investigation into 1.7M Ford and Lincoln vehicles that have potentially defective brake lines. The potentially affected vehicles are Ford Fusions and Lincoln MKZs from 2013-2018.
Russia’s invasion of Ukraine decimated freight on rail lines from China to Germany. Shipping by sea takes several days longer, so the Middle Corridor, from China’s Belt and Road initiative, is being built up rapidly.
Toyota paused operations at its plant in Chengdu, China, from Tues-Sat this week due to an order to conserve electricity issued by local authorities. The Sichuan province has been rationing industrial electricity consumption during its worst heatwave in 60 years.
Signs point to a takeover of Evergrande NEV, the EV division of the troubled Chinese real estate group. The company cobbled together 200 of its first model before running out of parts in July.
Mazda is looking to increase its supply chain outside China after years of compromised production due to COVID-19. Shanghai’s lockdowns and stalled chip production set the automaker back.
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