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Elm Analytics - Automotive Supply Chain Risk Digest #66 - May 11 - 17, 2018


Automotive Supply Chain Risk Digest

May 18 · Issue #66 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

A dozen states on the East Coast from Maine to Virginia and Washington D.C. will develop a strategy for building an EV charging infrastructure. The strategy aims to encourage more people to buy EVs.
Volkswagen and Seat are recalling up to 28,000 vehicles over a problem with a rear seat belt that could come unbuckled at higher speeds.
Ahead of China’s plan to change foreign ownership rules, Tesla has registered a new company in Shanghai, China.
Toyota logistics subsidiary Bastian Solutions has acquired supply chain consulting and engineering firm Peach State Integrated Technologies. Peach State provides services for vehicle parts distribution alongside services for other industries.
Hyundai’s CEO Lee Won-hee sent out a letter to Hyundai Mobis shareholders urging them to approve a proposed spinoff-merger plan for the subsidiary. He says that spinning off Mobis is “critical” and that “…we cannot guarantee sustainable growth with our existing business structure.”.
Intel’s Mobileye division has scored a deal to provide self-driving technologies to eight million cars for a European automaker. The terms of the contract as well as the name of the automaker are confidential.
It turns out that Meridian Magnesium Products has a history of recent safety violations leading up to the fire a couple of weeks ago. The plant has been cited for seven violations, including three serious ones, since early 2014.
Aluminum processor Novelis broke ground on a new plant in Guthrie, Kentucky this week. The 400,000sf plat will create 125 full-time jobs and produce automotive-grade aluminum sheets starting in 2020.
Air Temp of Mexico is opening a new US headquarters and plant in Panama City, Florida. The facility will be fully functional by next June and will initially create 50 jobs.
Ford says it will resume production of the F-150 at its Dearborn plant on May 16th and its Missouri plant on Monday. A Ford spokesperson said that they expect production to be in full force at both plants by the end of Monday.
Tesla will shut down production of the Model 3 for six days at the end of May to work on fixes to its assembly line. The shutdown will be the automaker’s third this year.
The May 17th NAFTA deadline passed. US House Speaker Paul Ryan amended his view saying that there would be a week or two to pass a deal in the current Congress. However, the International Trade Commission would need to take less time than permitted in its review. Canadian Prime Minister, Justin Trudeau said there’s a “broadly acceptable” proposal to the US, Canada and Mexico. David MacNaughton, Canada’s ambassador to the US, indicated things were coming together regarding automotive. The US proposed sunset clause that would kill NAFTA after five years, unless renewed, seems to be the biggest sticking point.
In a meeting with a dozen top automotive executives on May 11th, President Trump reiterated his desire for automakers to build more vehicles in the US and export more of them overseas. Also discussed was “how to best move forward” on fuel economy standards.
As of July 1, Russia will scrap its Regulation 166 agreement which allows automakers building cars in the country to import parts at low customs duty rates. This will raise current rates from 0-5% up to 20-25%.
A bill in California’s State Senate would mandate 100% of ride-hailing services (Lyft / Uber) to be zero emissions vehicles by 2030. If passed, the ripple effect may be far-reaching.
Starting in June in the UK, owners of cars that have a remote parking feature will legally be able to use the feature from outside of their vehicle.
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