Bankruptcy
Fisker has been delisted from the New York Stock Exchange and is facing possible bankruptcy.
Due to liquidity issues, the company has suspended production for six weeks and laid off 15% of its staff.
Talks with Nissan for a potential investment have reportedly ended, leaving Fisker's future uncertain.
Change In Management
Aston Martin has hired Bentley's CEO, Adrian Hallmark, to replace Amedeo Felisa as its new CEO.
Felisa, formerly Ferrari's CEO, is stepping down due to Aston Martin's struggle to deliver long-term profitability.
This makes Hallmark the company's fourth CEO in four years.
Disaster
The Francis Scott Key Bridge collapse and the following Port of Baltimore closure impacted the automotive industries' supply chains and inventory significantly.
With the port handling a record 570k vehicle imports last year and crucial automotive parts shipments, companies are scrambling with contingency plans and logistic alternatives.
The event highlights the automotive industry's critical dependency on specific infrastructure nodes and the cascading effects such disruptions can have on supply chain continuity and vehicle availability in the market.
Here's how automakers have reacted:
BMW: Will not face immediate impact beyond short-term traffic delays; the port's automotive terminal is still accessible.
Ford: Must divert parts to other ports, impacting the supply chain, but has secured shipping alternatives.
General Motors: Will reroute vehicle shipments to other ports with minimal expected impact.
Mercedes Benz: Sees no implications for vehicle exports, has reviewed and adjusted supply routes.
Stellantis: Discussing contingency plans to ensure an uninterrupted flow of vehicles.
Volkswagen: Vessel operations in Baltimore are unaffected but anticipate trucking delays.
Volvo Group: Expects no significant impact but is reviewing US inventory for potential disturbances in worst-case scenarios.
Expanding
AESC is expanding its lithium-ion EV battery manufacturing operations in Florence County, South Carolina, to support its partnership with BMW.
This expansion includes the construction of a second EV battery manufacturing facility adjacent to the initial building that began construction in June 2023.
The new operations, aimed at supporting BMW Group's Mexico Assembly Operations, are expected to be online by 2027.
Human Capital
Stellantis has reached new agreements with unions for voluntary layoffs in Italy, where it employs about 43k people. The company could reduce its workforce by over 3k, including over 1k layoffs at Melfi, Pomigliano d'Arco, and Termoli.
The voluntary redundancy deals, primarily aimed at employees nearing retirement or seeking new professional opportunities, add to previous agreements in Turin and Pratola Serra.
Stellantis is also laying off $ approximately 400 US salaried employees, about 2% of its workforce in engineering, technology, and software sectors, due to "unprecedented uncertainties and heightened competitive pressures around the world."
The March 31 layoffs are part of the company's strategy to improve efficiency and optimize cost structures amidst its shift towards electric vehicles. Affected employees will receive severance and job transition assistance.
An informant reportedly indicates that this round of layoffs may not be the last, suggesting Stellantis plans to execute further reductions in waves to navigate the WARN Act's requirements when at least for advance layoff notifications (60-day notice for 500+ employees laid off in 30 days).
Ford is reducing its hourly workforce at the Rouge Electric Vehicle Center in Dearborn, Michigan, where the company produces its F-150 Lightning EV.
One-third of the current 2.1k workers will remain at the facility, with the rest either being transferred, taking retirement packages, or accepting reassignments. Ford assures that no job losses will occur due to this reduction. This decision comes as Ford adjusts its production targets for the electric pickup truck in response to changing market demands and advancements in battery technology.
Nokian Tyres is temporarily laying off 350 employees at its Nokia, Finland, car tire factory for 90 days due to extended political strikes affecting ports and transportation, disrupting the company's ability to deliver to customers.
The strikes, protesting government labor reforms, and welfare cuts have led Nokian Tyres to adapt its production strategy while producing tires as usual.
Industry Directions
In a reversal of roles, automakers and Tier 1 suppliers, grappling with hefty investments in emerging technologies, are now requesting delays in parts payments from their suppliers $.
In an Automotive News interview, Adam Ratliff of Warner Norcross + Judd discussed requests, ranging from extending payment terms to postponing payments altogether.
Suppliers are evaluating these requests against their cash flow implications, leading to discussions that balance the needs of both parties.
This situation is both a challenge and a strategic opportunity for suppliers to negotiate future concessions to accommodate these payment delays.
Logistics Management has an interview worth checking out with Mike Burkhart, VP of Mexico for C.H. Robinson, discussing the nearshoring push into Mexico and its impact on establishing cross-border supply chain and logistics operations.
Opening
Sweden's Northvolt has initiated the construction of Northvolt Drei, a $4.9B EV battery gigafactory in Heide, Germany. Starting operations in 2026, Northvolt Drei aims to supply battery cells for 1M EVs annually, targeting an annual production capacity of 60 GWh.
BMW will begin construction of the 914k sq ft High Voltage Battery Production Center at its San Luis Potosà plant in Mexico on May 3. BMW aims to produce 175k EVs at the campus starting in early 2027.
Aptiv has begun construction on a new factory in Junshan New City that will produce connector systems in Wuhan, China. The factory will start operating in the first quarter of 2025 and will serve the domestic market by manufacturing high-voltage charging stations and connectors for new energy vehicles.
BASF has started constructing a new methyl glycols plant at its Verbund site in Zhanjiang, China. Slated to begin operations by the end of 2025, the facility will have an annual capacity of 46k metric tons. The plant aims to produce methyl diglycol, methyl triglycol, and methyl tetraglycol for the automotive (brake) fluids market.
Production Decrease
Tesla has scaled back production at its Shanghai, China facility, reducing the output of its Model Y SUV and Model 3 sedan. This adjustment involves shifting the work schedule from 6 1/2 days to 5 days a week due to slowed demand and increased competition within the Chinese EV market.
Recalls
Kia is recalling about 427k Telluride models due to a defect caused by improper assembly by supplier Mobis Alabama, risking the vehicles to roll away even when in park.
Stellantis is also initiating a recall of nearly 285k Chrysler and Dodge sedans in the US. A defect may occur where side curtain airbag inflators, made by its supplier Joyson Safety Systems, may rupture, posing a risk of ejecting sharp metal fragments.
Risk Analytics
S&P: Not all things begin and end with Tesla: Mexico's burgeoning automotive supply chain