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Elm Analytics - Automotive Supply Chain Risk Digest #43 - December 1 - 7, 2017

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Automotive Supply Chain Risk Digest

December 8 · Issue #43 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

CHANGE IN MANAGEMENT
Cadillac’s Head of Marketing, Uwe Ellinghaus, is stepping down as of Dec. 31. A replacement has yet to be named.
INDUSTRY DIRECTIONS
Is an agreement for “joint activities” between three of China’s largest state-owned auto manufacturers really a mega-merger forming a global auto giant?
Perceptions shaped by reality? Michigan is in a position to claim leadership of Auto 2.0.
LITIGATION
Nissan is beginning international arbitration against India to seek more than $770m from unpaid state incentives. Nissan says repeated requests for payment, which was due in 2015, were overlooked.
MERGERS, VENTURES, ACQUISITIONS
FCA is in talks with Hyundai about a partnership to develop hydrogen engines. Despite rumors of a merger between the two, FCA CEO Marchionne has said there is no likelihood of a merger.
PSA Group is forming a JV with Japanese electric motor company Nidec to produce motors for electric vehicles. The partners will invest $260m into a new plant in France that will start mass producing motors in 2022.  
Delphi is rebranding under the new corporate name Aptiv to represent their shifting focus to autonomous driving technology. Aptiv’s goal is to cut the cost of an autonomous system to around $5k by 2025, which is an estimated 90% lower than what they cost today.
Germany’s ElringKlinger entered into a joint venture with China’s Sichuan Chengfei Integration Technology to develop and produce lithium-ion battery modules.
PLANT EXPANSION
Bosch is investing $152m into expanding its Anderson, SC plant. The expansion will create 130 jobs and will include the growth of several automotive electronic component product lines.
To support production of the new Subaru Ascent, Subaru plans to invest $140m and create up to 200 new jobs at its Lafayette, Indiana plant. Production of the Subaru Ascent will begin in 2018.
Toyota Boshoku is investing $31m into its Jackson, TN plant. The expansion will add 143,000sf to the facility and create 139 new jobs.
German-owned Boysen Alabama, USA is expanding its facility in Vance. The plant manufactures exhaust systems used at the Mercedes-Benz U.S. International plant.
PLANT OPENING
Ohio company, New Steel International, will potentially invest $6b into a new automotive steel plant near Flint, Michigan. The plant is expected to be around 24,000,000sf and employ 800.
PLANT RELOCATION
Ford is moving production of a new 300-mile range electric crossover vehicle to its plant in Cuautitlan, Mexico instead of its Flat Rock, Michigan assembly plant. In Flat Rock, Ford is planning to expand its capabilities for building autonomous vehicles instead.
PRODUCTION INCREASE
Sekisui Chemical is bumping up production capacity at its auto windshield and laminated glass plant in Jiutepec, Mexico by 68%. The capacity increase was made possible by a $53m investment that added a third production line and increased the workforce by 44%.
RAW MATERIALS
Scientists at American Manganese, a recycling company from Vancouver, Canada, have developed a way to mine cobalt by recycling faulty batteries. American Manganese president Larry Reaugh says that this method could yield up to 4,000 tons of cobalt or enough to satisfy the needs of every EV on the road this year.
SUPPLY CHAIN
An overview of Automotive Logistics South America summit in São Paulo: “Holding on to the hard-won gains in Brazil”
Automotive freight by rail is growing between China and Europe. While rail serves as alternative to ocean shipments or as part of a multi mode solution, this growth is a Chinese initiative “One Belt, One Road”. Government subsidies for logistics and manufacturing companies are making rail more competitive.
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