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Elm Analytics - Supply Chain Risk Digest #13 - May 6 - 12, 2017

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Automotive Supply Chain Risk Digest

May 12 · Issue #13 · View online
Weekly highlights of the events that impact supply chain risk within the automotive industry.

​CHANGE IN MANAGEMENT
Andrew Frick will replace Chantel Lenard as Ford’s executive director of U.S. marketing. Her departure comes as Ford’s board puts pressure on CEO Mark Fields to turn things around.
HUMAN CAPITAL
5,000 automotive software and electrical engineers are needed as automotive transitions to a new paradigm. Detroit automakers are changing to attract young tech savvy workers.
LABOR DISPUTE
Workers from all industries are striking in Brazil after the government passed new pension and labor reforms. The president of the Central Workers Union says that it will be “the biggest general strike in the history of Brazil”.
United Auto Workers continued to pressure Volkswagen to recognize the union in Chattanooga. They questioned VW’s ongoing challenge to UAW representation during its annual shareholders meeting in Hanover.
Workers at the GM&S Industry plant in France have destroyed plant equipment and have threatened management with a “booby-trapped” factory. The plant went into receivership in December and around 280 jobs are on the line. Workers would like order commitments from Peugeot and Renault to keep the plant afloat.
LITIGATION
The judge presiding over Waymo’s trade-secrets theft lawsuit against Uber Technologies Inc. asked federal prosecutors to investigate the claims in the case, a dramatic turn in a closely watched fight that could influence the future of driverless cars.  
Volkswagen’s top two executives, CEO Mathias Mueller and Chairman Hans Dieter Poetsch, are being probed by Stuttgart prosecutors over whether they were too slow in telling Porsche SE shareholders about VW’s emissions cheating.
Volkswagen will not publish a report from US law firm Jones Day regarding the conclusions of an external investigation into its diesel emissions scandal. VW Chairman Hans Dieter Poetsch said VW would risk heavy fines and potentially more lawsuits if the report were released.
MERGERS, VENTURES, ACQUISITIONS
NVIDIA announced a collaboration with Toyota to deliver artificial intelligence hardware and software for autonomous vehicles.
PLANT OPENING
China’s GAC Motor has started construction on an industrial park to develop and produce electric and autonomous vehicles. The initial plant will be completed in 2018 with an aim to produce 200,000 vehicles a year.
Jenoptik, an industrial metrology and producer of laser processing systems, has opened a new technology campus in Rochester Hills, Michigan.
PRODUCTION INCREASE
BMW plans to raise its annual vehicle production capacity by around 27% to 3 million vehicles by 2020. 
Part of this increase is by doubling production capacity on light vehicles (X1, X3, X5) in China. BWM will also update assembly plants to produce electric vehicles. The production is a joint venture with Brilliance China Automotive Holdings.
REGULATION
EU nations drafted new rules relating to car approvals. The rules could impose high fines if tests (such as emissions) are circumvented. Germany opposed and has been reluctant to hand more regulatory power to the EU.
The state of New York will allow testing of autonomous vehicles on public roads.
Germany also passed a law this week that would allow self-driving vehicle testing on German roads.
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