Dear Reader,
By now, most of you pros are well aware of the high stakes in supply chain management—compliance requirements aren’t getting any easier, and the pressure is real.
If you're already tiers-deep in mapping to stay ahead, you’re not alone!
But if you’re looking for a refresher or some new insights, check out our latest article on LinkedIn:
Because even the best of us can use a few more tools in our toolbox, right? 👀
Best,
Nick Gaydos
Editor, Automotive Supply Chain Risk Digest
Contents
BANKRUPTCY
Accuride files Chapter 11, exit unprofitable contracts
CHANGE IN MANAGEMENT
Stellantis CEO Tavares faces criticism, hints at tough decisions
Antonio Filosa appointed as Stellantis North America COO
DISASTER
Tier-2 fire slows Zeekr 7X production in China
EXPANDING
Neolite ZKW opens new lighting facility in Pune, India
Toyoda Gosei expands Neemrana plant for airbags
Bosch invests $221M to expand Mexico brake systems plant
INDUSTRY DIRECTIONS
Deep Dive: Why BYD leads in making EVs globally
MERGERS, VENTURES, ACQUISITIONS
American Axle sells Indian axle business to Bharat Forge
GM Ventures invests $10M in Forge Nano for EV batteries
OPENING
Hyundai Mobis builds new EV parts plant in Slovakia
Dongfeng Honda opens EV plant in Wuhan, China
Niron Magnetics establishes magnet plant in Minneapolis
RELOCATING
Freudenberg consolidates operations in new India plants
Nitta relocates and expands South Korea hose factory
SHUTDOWN
Stellantis pauses production at Italian plants due to market conditions
Bankruptcy
Accuride, a wheel supplier, has filed for Chapter 11 bankruptcy $ to address a $486M debt and resolve issues with a General Motors contract.
The bankruptcy, a strategic decision, aims to help the company exit unprofitable agreements and recover from decreased demand.
Accuride seeks to offload its unprofitable Gunite business in Rockford, Illinois, which manufactures brake components.
Despite the bankruptcy filing, the company's North American operations will continue as usual, supported by $30M in new money-term loans. The bankruptcy does not include Accuride's business in Mexico, Asia, and Europe.
Change In Management
Stellantis CEO Carlos Tavares faced criticism over the company's US operations after a major profit warning, which saw Stellantis shares drop nearly 45% ytd.
Tavares, set to leave when his contract expires in 2026, acknowledged operational issues, including a failed marketing plan, excess inventory in the US, and a slow reaction to market pricing shifts, especially in key models like the Ram 1500 and Jeep Wagoneer.
The UAW strike and Stellantis' underinvestment in popular vehicles have further strained operations, prompting dealers to demand leadership with better North American market understanding.
Tavares hinted at painful decisions ahead, such as potential plant closures or brand offloads, as Stellantis struggles with inflated prices and rising costs. Stellantis' inability to manage excess inventory and pricing issues in the US has heightened supply chain vulnerabilities, risking further disruptions amid ongoing labor disputes with the UAW.
As part of efforts to address these challenges, Stellantis also announced a significant leadership reshuffle, naming Jeep CEO Antonio Filosa as North America's new Chief Operating Officer. Filosa, who previously led operations in South America, is tasked with improving US sales and addressing ongoing inventory issues.
This comes amid broader organizational changes, including the departure of CFO Natalie Knight, who is being replaced by Doug Ostermann, formerly COO of Stellantis China.
Disaster
A fire briefly impacted Zeekr's production of the new 7X SUV at a Tier-2 supplier in Yuyao, Zhejiang province, which may have slowed deliveries of the model. However, no one was injured in the fire, and Zeekr helped the supplier resume normal production.
Expanding
Neolite ZKW has opened a new manufacturing facility in Pune, Maharashtra, India, to expand its production capacity for automotive lighting, strategically locating it near key customers.
Due to stricter safety regulations, Toyoda Gosei has expanded its Neemrana Plant in India to meet rising airbag demand. The expanded 35k sq m facility began production in September 2024, focusing on frontal, side, and curtain airbags.
Bosch is investing $221M to expand its Aguascalientes, Mexico, plant adding additional production lines for brake systems.
Industry Directions
Bloomberg's deep dive into BYD's success: Wang Chuanfu, Stella Li and its impact on technology, competition, globalization, and geopolitics:
Mergers, Ventures, Acquisitions
American Axle & Manufacturing has agreed to sell its commercial vehicle axle business in India to Bharat Forge Limited for $65M. The sale includes AAM's manufacturing facilities in Pune and Chennai, focusing on light, medium, and heavy commercial vehicle axles. The transaction is expected to close in the fourth quarter of 2024, pending regulatory approvals.
GM Ventures has invested $10M in North Carolina's Forge Nano for their innovative EV battery technology, Atomic Armor. This surface coating technology strengthens and prevents corrosion, resulting in a 20% increase in range and the ability to fast charge in 10 min. GM and Forge Nano have also partnered to develop thin-film coatings to enhance GM's cathode active materials, showing their dedication to advancing EV battery technology.
Opening
Hyundai Mobis is investing $256M in building a new 105.7k sqm EV parts plant in Slovakia, including the company's first European facility for producing power electric systems, expected to manufacture 300k units annually. The company will also build a new EV braking systems plant at the existing Zilina facility.
Dongfeng Honda has opened the world's first dedicated Honda EV production plant in Wuhan, Hubei Province, China, with 800 employed and a yearly production capacity of 120k units.
Niron Magnetics has opened a 70k sq ft commercial pilot plant in Minneapolis, Minnesota, which can manufacture more than five tons of magnets annually. The plant will produce "Clean Earth Magnets" intended for use in the automotive industry, and the company's clients include General Motors, Magna, Samsung, Harman, Allison Transmission, and Volvo. Niron recently announced that it chose nearby Sartell for a new manufacturing plant producing 1,500 tons of magnets annually.
Relocating
Freudenberg Group has opened two new manufacturing plants totaling 40.7k sqm in Morinda, Punjab, India. The facilities will produce advanced sealing technologies and vibration control products and consolidate operations from Basma and Mohali.
Nitta recently relocated and expanded $ its hose and rubber components manufacturing plant in Gumi, South Korea. The new facility, with a building area of 21.7 sqm, is 2.3x larger than the previous plant and has introduced new production equipment to increase capacity for producing hoses and polymeric tube systems.
Shutdown
Stellantis will temporarily stop work at its factories in Pomigliano d'Arco, Termoli, and Pratola Serra in Italy between November 11 and November 29.
Production at the historic Mirafiori plant in Turin, which makes the electric Fiat 500 city car and two Maserati sports cars, has been suspended until November 1.
The company wants to keep its operations in Italy going but admits that it's facing challenges and tough decisions with no simple solutions.