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Elm Analytics - Automotive Supply Chain Risk Digest #65 - May 4 - 10, 2018

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Automotive Supply Chain Risk Digest

May 11 · Issue #65 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

INDUSTRY DIRECTIONS
Uber has released new details on their plans to launch a fleet of flying taxis within two years. Uber Air will launch with piloted aircrafts at first with the goal of reaching full autonomy later on.
Audi is joining BMW and Mercedes-Benz in saying that they will skip out on the 2019 North American International Auto Show in Detroit. Auto shows have seen pressure in recent years from the larger CES in Las Vegas.
LABOR DISPUTE
Production at Chrysler’s Brampton, Ontario assembly plant will resume soon as workers at Lear’s Ajax, Ontario seating plant have approved a new 4-year contract.
LITIGATION
A coalition of US states led by California has filed suit against the EPA to prevent their planned rollback of vehicle emission standards. California says that the EPA’s proposed action violates their own regulations and is arbitrary and capricious.
The National Highway Traffic Safety Administration says it is “deeply concerned” with the pace of recall repairs for Ford and Mazda trucks affected by faulty Takata airbags. 
Approval of a draft law by the German cabinet could pave the way for a huge class action lawsuit against VW.
MERGERS, VENTURES, ACQUISITIONS
The South Korean government says that they are working on a deal with GM that will ensure the automaker stays in the country for at least 10 more years. They reached a preliminary agreement last month to invest $4.35b to keep the company afloat.
Panasonic CEO Kazuhiro Tsuga hinted this week that they may jointly produce batteries with Tesla in China.
PLANT DISASTER
Production halted at Ford’s Flat Rock Assembly Plant in Michigan after a worker’s legs were pinned in machinery.
Meridian Magnesium Products of America says that they plan to have their plant in Eaton Rapids, Michigan rebuilt and reopened within the next four months. The plant was heavily damaged last week after a fire broke out. 

more related coverage below in “plant shutdown”…
PLANT RELOCATION
Locking system maker Kiekert is doubling its US production capacity by moving to a new facility in Wixom, Michigan. The 41,000sf facility will help production top one million units this year and create 30 new jobs.
PLANT OPENING
Japanese plastics supplier Nissei Plastic Industrial Co. has opened their first US plant in San Antonio, Texas. The 115,000sf facility represents a $21m investment.
Chinese truck maker Shaanxi Automobile Group has opened their first plant in Algeria. The plant will build up to 3,000 heavy-duty trucks per year and create 8,000 jobs.
PLANT SHUTDOWN
Ford is halting production of F-150s at their Dearborn, Michigan and Kansas City, Missouri plants due to last week’s fire at Meridian Lightweight Technologies’ plant in Michigan. The automaker says that the impact will be short term and that they have enough stock to weather the downtime.
FCA’s Windsor Assembly Plant in Windsor, Canada also was impacted by the explosion, as was Ford’s nearby Essex Engine Plant which is closed through this week.
In addition, GM’s Wentzville, Missouri facility has stopped production of the GMC Savana and Chevrolet Express big vans due to the fire. 
Production of SUVs at Daimler’s Mercedes-Benz near Tuscaloosa, Alabama plant was also halted.
REGULATION
Imported Ford, BMW and Daimler vehicles are being held up at Chinese ports due to increase emissions scrutiny. The vehicles, assembled in the United States, highlight the growing trade tensions.
RISK ANALYTICS
IATF 16949:2016, the new automotive quality management system has a transition deadline of September 14, 2018. With 68,000 suppliers affected, only 39% of the IATF 16949:2016 transition audits have been conducted.
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