Automotive Supply Chain Risk Digest #315
February 17 - 23, 2023 by Elm Analytics
Change In Management
Citroen named Thierry Koskas its new CEO. Koskas, who worked with Stellantis CEO Carlos Tavares at PSA Group, will succeed Vincent Cobee, who is leaving the company.
Volkswagen's Chinese JV with SAIC has named Jia Jianxu its new general manager. Jianxu had previously managed Yanfeng Automotive Interiors since 2018.
Contingent on government funding, GM wants to expand its St. Catharines, Ontario, plant to produce EV drive systems.
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Mergers, Ventures, Acquisitions
Motherson Group is acquiring Faurecia's SAS Cockpit Modules division. The "non-strategic asset divestment program" is part of Faurecia's efforts to normalize its acquisition of Hella.
The future of the Nissan / Mercedes-Benz joint venture in Aguascalientes, Mexico, is uncertain. Mercedes-Benz CEO Ola Kallenius: "We have a good partnership with Nissan, and it's supposed to stay this way for the next three years... What will happen after that, we haven't decided yet." The crossover assembly plant produces Mercedes GLB and Infinity's QX50 and QX55 and has always run at less than 50% capacity due to a lack of demand.
With Chinese demand weakening due to ending subsidies, Nio is looking to Europe to sell affordable EVs. The company plans to unveil a new brand and factory in Chuzhou, China, to make smaller vehicles.
Covestro plans to build a new thermoplastic polyurethane (TPU) plant in Zhuhai, China. The plant will be the company's largest TPU facility, estimated to be completed by the end of 2025.
Toyota reportedly aims to produce large electric SUVs at its Kentucky plant as soon as mid-2025.
Body parts supplier Sewon America will invest over $300M into a new plant in Rincon, Georgia. The new plant will create around 740 new jobs and start operations in 2025.
Forvia is considering locations for a pilot program with its hydrogen storage systems in Southeast Michigan.
Tax incentives from the US IRA have Tesla focusing on US cell production, likely shifting from Brandenburg, Germany, to Nevada.
China's Xpeng got the official go-ahead to begin production at its facility in Guangzhou, China. The company plans to make 120k of its flagship G9 per year.
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Ford idled its Louisville Assembly Plant for the second straight week. A software issue with the 2023 Escape originally idled the plant last week. Production will resume on March 6.
Lordstown has stopped production due to parts quality issues. The company recalled its Endurance pickup due to an "electrical connection issue that could result in a loss of propulsion while driving."
This week, GM idled production at its Corvette assembly plant in Bowling Green, Kentucky, due to a temporary parts disruption. A GM spokesperson said that the shortage is not "chip-related" and that production will resume on February 27.
Starting March 27, GM will idle its Fort Wayne, Indiana pickup plant for two weeks to manage inventory levels.