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Elm Analytics - Automotive Supply Chain Risk Digest #290 - August 26 - September 1, 2022


Automotive Supply Chain Risk Digest

September 2 · Issue #290 · View online

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

VW is spending $2B to transition its Salzgitter, Germany, plant from producing engines to battery cells.
Bosch is investing $200M into its plant in Anderson, SC, to build fuel cell stacks for hydrogen-powered trucks. The investment will add 350 jobs at the plant.
Brose is eliminating over 300 jobs at its plant in London, Ontario, Canada. As a result, the seat production lines there will transition to other locations.
A new study from the Insurance Institute for Highway Safety shows that many vehicles’ automatic braking systems perform poorly in nighttime tests. In a test of 23 models, four earned a Superior rating (A), and more than half achieved a Basic score or No Credit.
Elon Musk says that Tesla plans to launch full self-driving in the US and Europe this year, depending on regulatory approval.
Independent Union of Automotive Workers (SITIAVW) rejected a 9% pay increase deal at VW’s Puebla plant in Mexico. The union sought a 15% increase for its workers earning $15-$48 daily. A strike is planned for September 9 but could be delayed to allow time for negotiation.
A proposed class action lawsuit accuses Tesla of going to market with an unsafe ADAS system. The lawsuit states, “When the sudden unintended braking defect occurs, they turn what is supposed to be a safety feature into a frightening and dangerous nightmare.”
Toyota has plans to invest up to $5B into EV battery production in the US and Japan. New production facilities will come online between 2024 and 2026.
Bridgestone is investing $42M to commercialize guayule-derived natural rubber in the US.
Honda and LG are planning a new $4.4B EV battery plant in the US. The plant would have a production capacity of 40GWh and exclusively supply Honda.
Panasonic is reportedly looking to invest $4B into a new EV battery plant in Oklahoma. Panasonic announced plans for a new battery plant in Kansas last month.
Solid-state EV cell developer, Factorial Energy, is building a pilot production facility in Methuen, Massachusetts. Mercedes-Benz, Stellantis, and Hyundai-Kia back the company.
China’s GAC launched a new LFP battery subsidiary, Lvqingg. The company is building an EV cell factory near Guangzhou, set for completion in 2025.
GM and LG’s Ultium Cells EV battery plant started production in Warren, Ohio, this week. The plant currently supplies batteries for the Hummer EV.
VW’s Chengdu plant in China is operating in a “closed-loop system.” 21M residents of Chengdu are under lockdown due to increases in Covid-19 infections.
Ford, GM, and Rivian have issued recalls for around 400k US vehicles.
Cruise issued a software recall for its autonomous taxis this week. The software allowed vehicles to make an “unprotected left turn.”
The state of Washington will prohibit sales of new gas vehicles by 2035.
Despite holding the #2 spot in the US EV market, Hyundai and Kia stand to be hurt by their exclusion from the Inflation Reduction Act’s new EV tax credits. The automakers don’t qualify for the credit as they don’t yet make EVs in North America.
Due to semiconductor shortages, GM shut down its Silao pickup and Bowling Green Corvette assembly plants this week. The company plans to resume production after Labor Day.
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