Automotive Supply Chain Risk Digest #324
April 21 - 27, 2023 by Elm Analytics
Change In Management
Hyundai has named EVP Yong Wha Kim as its new head of R&D. Kim will start his new position on May 1.
Cyber Security
Japan Times: Cybersecurity nightmare in Japan is everyone else's problem too
Expanding
GM's GMC Sierra and Chevy Silverado EV pickups will replace the Chevy Bolt on the production line at its Orion, Michigan, plant in 2024. The affordable and popular Bolt was launched in 2017 but faced recent issues with battery fires.
BMW is transitioning its Regensburg, Germany, plant for producing its iX2 EV. The company expects its nearby Leibnizstrasse components factory to transition to 100% electromobility production within two years.
BorgWarner is investing $20M to expand EV battery and charging capability at its facilities at Auburn Hills, Dearborn, and Hazel Park, Michigan.
Human Capital
Stellantis is looking to cut 3.5k hourly skilled and production jobs in the US to cut costs. The automaker plans to offer buyouts to around 33k workers in the US and an undisclosed number in Canada.
Reuters: How a fake ID let Hyundai suppliers use child labor in Alabama
Industry Directions
Chipmaker TSMC announced this week that it plans to release new software this year to allow its customers to take advantage of its latest technologies more quickly. Due to the specialized manufacturing processes necessary for automotive chips, they have typically lagged behind consumer chips by a few years.
Mergers, Ventures, Acquisitions
Bosch has agreed to buy key assets of California-based chipmaker TSI Semiconductors to expand US production of chips for EVs. Bosch did not disclose a purchase price; however, it said it would invest $1.5B into retooling TSI's facilities in Roseville, California.
Israelian fast charging EV battery maker StoreDot has started a new JV with Vietnamese automaker Vinfast to develop high-speed charging battery cells in different form factors. The first generation of the new battery is expected to be available by 2025 and immediately added to Vinfass vehicles.
Opening
GM and Samsung SDI announced plans to partner on a new $3B EV battery plant in the US this week. The JV is reportedly considering locating the plant in New Carlisle, Indiana.
Hyundai is teaming with SK On to build a $4.9B EV battery plant in the US. The venture will construct the plant in Bartow County, Georgia, and start production in 2025.
LG Energy will build a $450M production line at its Ochang, South Korea, plant to produce pouch-shaped lithium-ion EV batteries. The move comes at a time when EV battery infrastructure is exploding in North America.
Autoliv is opening a 90k sq m airbag cushion and fabric plant in Vietnam.
Siro, the JV between Turkey's Togg and China's Farasis, began construction on its 20Gwh EV battery facility in zGemlik, Turkey. The company expects the factory to be operating by 2026.
Production Increase
Toyota beat its annual production target by manufacturing 9.1M vehicles. It warned the global semiconductor shortage continues to impact its ability to forecast.
CATL and BYD plan to mass-produce sodium-ion EV batteries this year, potentially lowering battery costs and providing a more sustainable alternative to lithium-ion batteries. This move could represent a significant shift in the industry if sodium-ion batteries prove to be a viable and cost-effective alternative to lithium-ion batteries.
Battery start-up ElevenEs has started producing lithium iron phosphate (LFP) battery cells in its newly opened factory in Serbia.
Japan's TDK will invest around $260M into doubling its production capacity of high-precision magnetic sensors for the automotive industry by mid-2025. The production increase is a response to the increased development of EVs and autonomous driving features.
Regulation
Japan announced it would subsidize half of the costs for domestic companies to develop and produce lithium, cobalt, and rare earth metals used in EV batteries. The initiative aims to secure a stable supply chain of these critical minerals and reduce dependence on China.
Risk Analytics
A recent Deloitte supplier study points to high levels of debt and inflation leading to more potential bankruptcies. High-interest rates and tighter credit have left suppliers loaded with increased costs. That burden adds to existing debt from rising material costs and EV and ADAS investments. The study also projects revenue from ICE programs to fall 44% while EV programs jump 245% in the next four years.
Foley: Product Liability Trends in the Automotive Industry
Supply Chain
Honda has agreed with TSMC to secure a long-term, stable supply of semiconductors. The automaker expects to start seeing an impact from the deal in 2025.