Automotive Supply Chain Risk Digest #421
February 21 - 27, 2025, by Elm Analytics
Contents
CHANGE IN MANAGEMENT
Nissan plans management shake-up March 12
Lucid CEO steps down, interim named
Porsche reshuffles executive board
EXPANDING
Henkel expands in India with new sites
BMW pauses Oxford Mini EV upgrade
HUMAN CAPITAL
Mercedes-Benz China cuts 15% of workforce
Aston Martin cuts 170 jobs, delays EV
MERGERS, VENTURES, ACQUISITIONS
Suzuki partners for EV battery supply
Idemitsu to build lithium sulfide plant
Tesla acquires German supplier Manz assets
OPENING
Maruti Suzuki opens Kharkhoda plant
CALB starts Portugal battery plant construction
PRODUCTION INCREASE
Toyota global production rises 6%
Schaeffler begins production in Xiangtan
REGULATION
Trump tariffs on Mexico, Canada March 4
Impact of new steel, aluminum tariffs
SHUTDOWN
GM idles Corvette plant for upgrades
SUPPLY CHAIN
Ford, GM delay major vehicle launches
Change In Management
Nissan is reportedly set to announce a management shake-up on March 12, though CEO Makoto Uchida is currently expected to retain his position. The restructuring comes as Nissan struggles with declining performance and failed merger talks with Honda.
While the board is assessing potential CEO candidates, there is no immediate plan to replace Uchida, who has led the company since 2019. Nissan's turnaround plan includes plant closures and streamlined management, but analysts remain skeptical about a leadership change significantly altering the company's trajectory.
Lucid Group CEO Peter Rawlinson is stepping down as the luxury EV maker seeks a turnaround, transitioning to a strategic technical adviser role. COO Marc Winterhoff will serve as interim CEO. The Saudi-backed company reported a $637m net loss in Q4 despite a 79% year-over-year increase in vehicle deliveries to 3.1k units.
Porsche has reshuffled its executive board, appointing Jochen Breckner as the new CFO, overseeing finance and IT, effective Wednesday. Matthias Becker will take over sales and marketing, replacing Detlev von Platen, while Lutz Meschke, the former finance and IT chief, is also departing.
The Volkswagen-owned luxury brand stated that both executives are leaving by mutual agreement. The leadership changes come as Porsche navigates evolving market conditions and operational challenges.
Expanding
Henkel has inaugurated a new 17k sq ft Application Engineering Center in Chennai, Tamil Nadu, India, and announced plans for a dedicated electronics adhesive manufacturing facility at its Kurkumbh site near Pune.
BMW has paused its $754m investment in upgrading its Oxford Mini plant for electric vehicle production, citing uncertainties in the automotive industry and weakening EV demand. Initially announced in 2023 to secure 4,000 jobs and produce electric Mini models by 2026, the project will no longer receive UK government support.
While some site upgrades are ongoing, the plant will continue producing internal combustion Minis for now. This delay raises concerns about the plant's long-term EV transition, which is still aimed for completion by 2030.
Human Capital
Mercedes-Benz China has confirmed job cuts as part of a business consolidation effort to improve efficiency in a highly competitive market. Reports indicate that about 15% of its workforce will be affected, primarily in sales and auto finance, while R&D remains untouched. The layoffs began on February 26 and came amid a broader restructuring strategy to streamline operations and sustain market competitiveness.
Aston Martin will cut 170 jobs, reducing its workforce by 5% as part of a plan to save $31M annually amid "external challenges" like supplier disruptions. The company reported a $363M loss in 2024, with sales down 9% to just over 6k units. Additionally, it has postponed its first EV to the "latter part of this decade," focusing on plug-in hybrids instead.
Mergers, Ventures, Acquisitions
Suzuki Motor Corp has partnered with Tata Gotion to provide batteries for electric motorcycles, FinDreams for battery electric vehicles, TDSG for hybrids, and ELIIY Power will assist with battery R&D at Suzuki's Kawasaki Plant. These partnerships support Suzuki's strategy to localize production in India as its hub for EV and hybrid vehicle manufacturing.
Japan's Idemitsu Kosan will build a large-scale lithium sulfide production plant to supply Toyota's upcoming all-solid-state EV batteries. The facility will produce 1k metric tons of lithium sulfide annually, with mass production of all-solid-state batteries targeted for 2027-2028.
Tesla's automation subsidiary will acquire key assets and 300 employees of Manz AG, a German automation systems supplier that filed for insolvency in December 2024.
Opening
Maruti Suzuki has begun production at its new Kharkhoda plant in Haryana, which has an initial capacity of 250k units. This is the company's fourth manufacturing facility in India, and part of its plan is to double its annual production capacity to 4m units by 2030-31.
Chinese battery maker CALB has begun construction on its first overseas battery plant in Sines, Portugal, with a planned $2.1B investment and a 2027 production start date. The plant will supply automakers such as Toyota, Volkswagen, Ford, and Audi. The first phase will have a capacity of 15 GWh, enough to power approximately 300k EVs.
Production Increase
In January, Toyota's global production rose 6% year-over-year, its first increase in a year, driven by a 22% rebound in domestic output. North American production increased by 3% due to a significant rise in Mexican output. However, global sales were flat, with a 13% rise in Japan offset by a 14% drop in China and a 1% decline in the US.
Schaeffler has begun production of steering ball screws at its Xiangtan facility in Hunan, China.
Regulation
US President Donald Trump confirmed that his proposed 25% tariffs on Mexican and Canadian goods will take effect on March 4, alongside an additional 10% tariff on Chinese imports, citing inadequate progress in curbing fentanyl inflows. The move follows a 10% tariff on China imposed in early February, signaling a harder stance on trade as the White House positions China as a "foreign adversary" in investment and technology.
Canada and Mexico are in last-minute negotiations to prevent tariffs that could disrupt North American trade. Meanwhile, Beijing has yet to announce countermeasures but may escalate retaliatory duties as U.S.-China trade tensions intensify. Why it matters: The tariffs could significantly impact North American supply chains, increasing costs for automakers and manufacturers relying on cross-border trade.
Foley: What Every Multinational Company Should Know About … The New Steel and Aluminum Tariffs (Part II)
Shutdown
General Motors will temporarily idle $ its Bowling Green Assembly plant in Kentucky for several weeks to implement manufacturing updates in preparing for the launch of the 2025 Corvette ZR1 in the second quarter. According to sources, the planned downtime includes this week, March 17, March 24, and May 19.
Supply Chain
Ford and GM are delaying major vehicle launches, including the next-generation Ford F-150 and a mid-cycle refresh for GM's full-size SUVs (Tahoe, Suburban, Yukon, and Escalade). These delays, driven by regulatory uncertainty, EV demand fluctuations, and cost-cutting efforts, disrupt the supply chain.
Suppliers, including Lear Corp., Autoliv, and American Axle, report reduced new business backlogs, with sourcing activity at its lowest since 2018. While some internal combustion programs are being extended, giving suppliers short-term stability, uncertainty over future drivetrain strategies and production locations limits investment and pricing negotiations.
Automaker delays create financial strain for suppliers $, who rely on new contracts to maintain profitability, while prolonged uncertainty complicates EV and ICE production planning.
