Elm Analytics - Automotive Supply Chain Risk Digest #296 - October 7 - 13, 2022



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Automotive Supply Chain Risk Digest

October 14 · Issue #296 · View online

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

Michigan-based automotive plastic parts supplier Instaset Plastics filed for Chapter 11 bankruptcy this week. Clarion Technologies is buying the company and will take over on October 31.
EV plant subsidies are at record levels thanks to states flush with cash. “The cost per permanent job for some projects is now eight times the average seen less than a decade ago.” The measure has jumped from averages of $52k in 2015 to previously unseen levels upwards of $450k per permanent job.
The Brotherhood of Maintenance of Way Employees rejected September’s tentative railway labor agreement. While “failed ratification does not present risk of an immediate service disruption,” the unions will now return to the bargaining table.
Honda plans to invest $4.4B into its operations in Ohio to move towards EVs. The plan will see $3.5B invested into a new JV battery plant with LG, $700M in retooling its plants in Anna, Marysville, and East Liberty, and 2k new jobs.
Sony and Honda’s new JV, Sony Honda Mobility, announced this week that it plans to deliver its first EVs in 2026. Honda’s existing North American plants will build the vehicles.
GM is investing up to $69M into Australian metals company Queensland Pacific Metals of Australia to secure a nickel and cobalt supply for its EVs. The investment will contribute to plans for a new battery materials refinery in northern Australia.
Korean conglomerate Lotte Group signed a $1.9B deal this week to acquire copper foil supplier Iljin Materials.
Hyundai plans to invest $12.6B into a shared digital platform for all of its vehicles by 2025. The new platform will allow over-the-air updates and unlock new features more quickly.
Whew! Lots of openings announced this week:
Australian cobalt company Jervois Global is opening a new cobalt mine in Shoup, Idaho. It is the first cobalt mining operation in the US in nearly 30 years and will produce 2k tons of mined cobalt annually.
Aluminum processor Novelis has broken ground on a new $2.5B aluminum recycling and rolling plant in Bay Minette, Alabama.
Bocar opened its new $176M, 323k sq ft plant in Huntsville, Alabama, this week. The plant makes structural, powertrain, and electric drive unit components.
Sekisui Voltek will build a new plant at its Coldwater, Michigan facility to produce cross-linked polyethylene and polypropylene automotive foams.
Hella opened two new electromobility development sites in Iasi and Oradea, Romania.
Magna opened a new 183k sq ft manufacturing facility in Struga, Macedonia. The plant will produce exterior mirrors, actuators, and wiring harnesses.
and in Mexico:
Aptiv opened a second plant in Linares, Nuevo Leon, Mexico, where it will manufacture EV wiring harnesses.
ArcelorMittal will build a fifth pipe mill in Escobedo, Nuevo Leon, Mexico, to supply VW, GM, and Ford.
Audi will build a “mirror plant to produce the electric version of its Q5 at its Puebla complex in Mexico.
Dayco will build a new plant in San Luis Potosi, Mexico, to manufacture transmission and timing belts.
Stellantis has dropped its third shift at the Warren Truck Assembly due to chip shortages and to “improve production efficiency.”
Lucid has increased production to 2.3k vehicles in Q3 and expects to meet its 6k-7k production targets. The upstart has repeatedly scaled back its 2022 goals from the 20k planned initially last year.
Rivian has recalled 13k vehicles - nearly all that it made in 2022 - due to a potential loose fastener that could cause a driver to lose steering control. The automaker started selling EVs late last year and has delivered 13,198 vehicles.
S&P Global Mobility explores the risk exposure of automotive manufacturing to sky-high European energy prices in Winter is Coming (pdf).
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