Automotive Supply Chain Risk Digest #328
May 19 - 25, 202 by Elm Analytics
Bankruptcy
Reportedly, the Chinese city of Shenyang is planning a $2.3B offer to take control of Brilliance. The company is undergoing court-led restructuring.
Cyber Security
Gentex confirmed that it suffered a ransomware attack and data breach several months ago. The breach reportedly involved the theft of sensitive corporate data, including client documents and personal employee information, by a ransomware group called Dunghill. The company produces automatic-dimming rearview mirrors and electronics.
Tesla reportedly failed to secure sensitive customer, employee, and partner data and may face EU GDPR fines.
Human Capital
BMW reportedly has concerns that the planned VW Scout plant will increase competition for assembly workers. The plants will be 100m from each other in South Carolina. New development in the area estimates demand for 9k OEM assembly plant and 18k supplier workers.
Industry Directions
Canada's Li-Metal has successfully created lithium metal from lithium carbonate, reducing the steps and harmful byproducts involved in refining it.
McKinsey: The future of mobility - Mobility evolves
Mergers, Ventures, Acquisitions
Stellantis has invested in Lyten to develop lithium-sulfur EV batteries, composites, and onboard sensors.
Starting in 2024, Ford customers can use over 12k Tesla chargers throughout North America thanks to a new partnership between the two companies.
Opening
Hyundai and LG will build a $4.3B 30 GWh EV battery plant in Georgia. Construction begins later this year, with production starting in 2025. The plant will be near its existing facilities and intends to take advantage of IRA tax credits.
St. Joseph County County officials approved a development /tax agreement with GM for its EV battery plant venture with Samsung in Indiana.
Production Increase
Panasonic aims to increase the production of its cylindrical batteries to 200 GWh by 2031. The company anticipates demand from Japanese automakers.
Raw Material Disruption
Reuters Column: Supply anxiety is the new hope for developing energy transition mines
Recalls
NHTSA has escalated an 8-year investigation into incidents involving ruptured airbag inflators made by Delphi / Autoliv / ARC Automotive. The letter calls on ARC to recall 67M inflators.
Regulation
California has sent a letter to the Biden administration, asking for permission to implement a plan allowing the sale of EVs and not ICE vehicles after 2035.
VW and Audi agree in principle to pay an $85M settlement for violating Texas environmental laws in its diesel emissions scandal.
During the Asia Pacific Economic Cooperation trade ministers meeting, union leaders and trade representatives emphasized the importance of achieving a fair balance between the needs of workers and corporate profits.
Relocating
British EV startup Arrival is leaving the UK for IRA-supported production in the US. The company will focus on a medium-duty delivery van that brings customers a $40k subsidy. The company previously warned it would run out of cash at the end of this year.
Risk Analytics
The CEO of Stellantis, Carlos Tavares, is adjusting his priorities from supply chain issues to cost-saving tactics as the semiconductor shortage situation improves. He plans to reduce the workforce, request government assistance, and explore different market strategies to achieve this. Tavares' strategy aligns with his previous success in lowering costs while leading PSA Group. Although Stellantis is now in a better position to boost production, pricing competition could hasten this trend.
GM's reportedly slow battery plant ramp-ups could limit its production. AFS indicates that the company may only be able to produce 58GWh out of its planned 135 Gwh capacity, resulting in 76k EVs in 2023 and 328k in 2024.