Contents
Fisker files for bankruptcy
Stellantis executives depart, causing unease
Tesla sues Matthews for trade secrets
MERGERS, VENTURES, ACQUISITIONS
BMW cancels $2.1B Northvolt order
Gotion, InoBat investing $1.3B in Slovakia
Denso, Aisin reduce cross-shareholdings
onsemi investing $2B in Czech Republic
Super Screws, Mitsuchi partner for JV
Hyundai doubling India investment
Minda, HSIN Chong form JV
HARMAN starts constructing Thai facility
CATL building Beijing production base
Sumitomo building Spanish facility
Wolfspeed delays German plant
Stellantis, Leapmotor start EV production
DR Automobiles fined for deceptive marketing
Toyota halts six production lines
Ford tests shipping from Guaymas port
Rising ocean shipping costs identified
Bankruptcy
Fisker has filed for bankruptcy a year after delivering its first vehicle and almost four years after going public.
The company faced financial struggles, missed production targets for its Ocean SUV, production halts, and loan defaults. Efforts to secure investments failed, leading to its delisting from the NYSE. Fisker seeks to sell assets worth $500M to $1B while owing $100M to $500M.
"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently."
Fisker's bankruptcy spotlights the significant risks and challenges in the EV industry, highlighting vulnerabilities even among well-capitalized start-ups.
Change In Management
Stellantis has witnessed the departure of four key North American executives, including Dodge and Ram CEO Tim Kuniskis and former Jeep North American chief Jim Morrison, in the midst of CEO Carlos Tavares' drive for improved performance and cost-cutting.
This exodus has stirred unease $ among US dealers and salaried workers, who are now questioning the company's ability to uphold sales and performance in the competitive automotive market.
Despite the introduction of seasoned replacements, the turnover underscores the challenges faced during a critical transition period, potentially impacting Stellantis' strategic execution and market performance.
Litigation
In a complex legal battle playing out in a California federal court, Tesla has filed a lawsuit against its former supplier, Matthews International.
The suit alleges that Matthews has stolen and shared Tesla's battery-making secrets with other companies. Tesla is seeking damages exceeding $1B, asserting that Matthews has misused its dry electrode battery manufacturing technology.
However, Matthews, a supplier to Tesla since 2019, has strongly refuted these allegations. They claim that the lawsuit is a ploy by Tesla to unfairly seize their intellectual property.
Tesla's objective is twofold: to prevent Matthews from further utilizing its secrets and gain control over its patent applications.
Mergers, Ventures, Acquisitions
Due to delivery delays, BMW canceled a $2.1B order for EV battery cells from Northvolt.
Both companies will now focus on developing next-generation battery cells, while BMW remains committed to supporting sustainable battery production in Europe.
According to Economy Minister Denisa Sakova, China's Gotion High Tech and Slovak partner InoBat will invest $1.3B to construct an EV battery plant in Slovakia.
The companies announced last November that the plant will have an annual production capacity of 20 GWh and begin production in early 2027. This investment is the second largest in Slovakia's history.
As revealed by regulatory filings, Toyota's top suppliers, Denso and Aisin, have sold off their holdings in several Toyota-affiliated companies.
Denso divested stakes in Toyota Boshoku, Toyota Tsusho, Toyoda Gosei, and Hino Motors by March's end of the financial year. Aisin also reduced its stakes in these companies and sold off its Denso stake.
This move is part of a broader trend to reduce cross-shareholdings within the Toyota Group, addressing corporate governance concerns.
Toyota has committed to selling cross-shareholdings to accelerate its transformation.
onsemi plans to invest up to $2B in the Czech Republic to create a silicon carbide manufacturing facility and expand its production capacity of energy-efficient semiconductors for EVs.
India's Super Screws and Japan's Mitsuchi Corporation have partnered to establish a JV manufacturing plant in India for producing and distributing high-quality cold-forged parts.
Hyundai Motor India plans to double its investment in India, using proceeds from a $3.B IPO to enhance manufacturing capabilities and develop new vehicle platforms, especially in the EV sector.
Hyundai's Chennai facility, producing a new vehicle every 30 seconds, will be augmented by a new plant in Talegaon, Maharashtra, pushing total capacity to over 1M units annually.
India's Minda signed a 50/50 JV with Taiwan's HSIN Chong Machinery to produce automotive sunroof and closure systems.
Opening
HARMAN has begun constructing a 505k sq ft infotainment systems manufacturing facility in Laem Chabang, Thailand.
CATL has started building a production base in Beijing to provide battery products to BAIC, Xiaomi, and Li Auto. This facility is part of Beijing Shidai Power Battery Co Ltd, a JV in which CATL holds a 51% stake and will cater to customers in Beijing, Tianjin, and Hebei.
Sumitomo Electric Bordnetze (SEBN) is constructing its first Spanish production facility in Cuenca to manufacture high-voltage wiring harnesses. Production will start at the end of 2025 at the new facility, which will have a workforce of 350 and support Volkswagen Group and Seat EVs.
Production Decrease
Wolfspeed's decision to delay its $3B plant in Germany to mid-2025 is a stark reminder of the challenges the EU faces in boosting semiconductor production.
Despite the EU's ambitious Chips Act, which aims to raise $46B for semiconductor projects, the lack of necessary state aid has led to delays, pushing back Europe's self-sufficiency goals.
The delays in other major projects by Intel, TSMC, Infineon, and GlobalFoundries further compound the issue, making the EU's target of a 20% global market share by 2030 seem increasingly unrealistic.
These delays not only hinder Europe's ability to become self-reliant in semiconductor production but also leave it exposed to global supply chain disruptions, underlining the urgency of the situation.
Production Increase
Stellantis, in collaboration with its Chinese partner, Leapmotor, has begun making the T03, a small EV. The production at its Tychy plant in Poland has already started, with plans to ramp up in September. This move illustrates Leapmotor's strategic expansion into the European market and Stellantis' emphasis on cost-effective assembly in Poland.
Regulation
The Italian government fined DR Automobiles $6.4M for misleadingly marketing their vehicles as made in Italy when they were actually produced in China.
The Italian Competition Authority found that since December 2021, DR Automobiles used deceptive advertising, including Italian motifs and misleading messages, to boost sales, while the nearly complete cars were imported from China with only minor finishing done in Italy.
Shutdown
Toyota will halt six production lines at five of its plants in Japan due to a parts shortage. The automaker did not specify which plants or parts are affected, but it expects to decide whether to resume production by the end of the week.
Supply Chain
Ford has started shipping vehicles from the Guaymas port in Sonora, Mexico, as part of a pilot project to reduce logistics costs by 30%. The first shipment included pickups and Broncos, which were destined for Chile. This initiative is part of a broader revamp of the port, spearheaded by Mexican President Andres Manuel Lopez Obrador.
Previously, Ford transported vehicles over 1.2k miles to the port of Lazaro Cardenas. The modernization of Guaymas port includes deepening its waters and constructing a platform to accommodate more oversized cargoes and facilitate more efficient shipping.
Ocean container shipping costs have been rising due to four key factors identified by Drewry: stagnant capacity, solid demand growth, shipper behavior, and operational disruption.
Rising shipping rates and capacity challenges can significantly disrupt global supply chains, impacting costs and efficiency for businesses relying on maritime transport.
Despite the addition of ships to East-West routes, effective capacity increased only marginally due to longer travel distances. Strong transpacific volumes and early peak season shipping by some companies have further stressed capacity. Additionally, port productivity has declined, with increased wait times before berthing.
While some issues might persist beyond a year, new ship deliveries and the re-opening of the Suez Canal route could alleviate the supply-demand imbalance.