Automotive Supply Chain Risk Digest #318

March 10 - 16, 2023 by Elm Analytics

Mar 17, 2023

Change In Management

GM's global chief marketing officer and senior vice president, Deborah Wahl, has "elected to retire" at the end of March. GM announced a $2B cost-cutting plan in January, including buyouts and staff reductions.

Rivian's chief engineer, Charles Sanderson, is returning to McLaren as its CFO. Rivian has lost six execs as it has struggled with ramping up production.

Isuzu has announced a slew of management changes as of April 1.

Expanding

Lear plans to expand its new Detroit seating plant by 268k sq ft. The supplier has signed a lease to fill the remaining space in the former Cadillac Stamping Plant.

ABB is expanding its Auburn Hills, Michigan, plant. It's investing in automation and is adding a third manufacturing line.

Human Capital

Ford is cutting 1.1k jobs at its plant in Valencia, Spain. The job cuts are part of the automaker's plan for a "leaner, more competitive cost structure in Europe."

Industry Directions

Supply Chain Management Review: AI ain't ready for prime time in the supply chain

GM is investigating potential in-vehicle uses for ChatGPT in collaboration with Microsoft. It could be used for functions such as adding garage door codes, integrating schedules from a calendar, or accessing the owner's manual information.

Labor

GM agreed to a 10% pay increase with SINTTIA, an independent union representing 4k workers at its Silao, Mexico plants.

Tool and die workers at Nissan's Smyrna, Tennessee, plant voted 62-9 against joining a union (IAM).

Mergers, Ventures, Acquisitions

Samsung will invest a staggering $230B over the next 20 years to build the world's most extensive semiconductor manufacturing base near Seoul, South Korea. The chip-making "mega cluster" is expected to be established by 2042 and aims to attract 150 other companies producing materials and components or high-tech chips.

Michigan lawmakers this week approved using $585M in state funds to support three new EV battery factories in Michigan. Ford will receive $210M for their planned Marshall plant, Our Next Energy will receive $200M for its planned Van Buren Township plant, and Gotion will receive $175M for the planned Big Rapids plant.

Hyundai is looking to buy GM's Talegaon plant in Maharashtra, India. While GM stopped selling cars in India in 2017, legal setbacks have prevented it from exiting completely.

Opening

Volkswagen plans to build its first overseas EV battery plant in St. Thomas, Ontario, Canada. The "gigafactory" is scheduled to start production in 2027.

Stellantis, Mercedes, and TotalEnergies JV, Automotive Cells Company (ACC), plans to open its Termoli, Italy, gigafactory in 2026.

Production Decrease

Nissan's Ariya EV reportedly faces production line setbacks, running at under 66% of anticipated output. The hybrid assembly line in Tochigi, Japan, suffers from chip supplies, parts logistics, and paint line technology issues.

Production Increase

Tesla says its new dry electrode coating process has the potential to radically reduce the size, cost, energy consumption, and production cycle time of battery manufacturing plants. They added that it would also boost the energy density and power of battery cells.