Automotive Supply Chain Risk Digest #432
May 9 - 15, 2025, by Elm Analytics
Contents
CHANGE IN MANAGEMENT
Zeekr CEO Andy An promoted
EARNING DIP
Porsche delays EV plans, cuts jobs
Honda, Nissan hit by US tariffs
HUMAN CAPITAL
GM Oshawa shift cuts affect thousands
INDUSTRY DIRECTIONS
Subaru rethinks EV mix strategy
LABOR DISPUTE
Ford Germany workers strike over layoffs
MERGERS, VENTURES, ACQUISITIONS
Mazda, CATL partner on EV chassis
OPENING
AESC to build UK battery gigafactory
PRODUCTION DECREASE
GM halts Detroit hydrogen plant project
Stellantis delays Ram EV, hybrid models
PRODUCTION INCREASE
Honda shifts production to US plants
REGULATION
China resumes rare earth exports
Summary of Trump tariff actions
SHUTDOWN
JLR ends China production for Freelander
Nissan suspending Japan plant operations
Change In Management
Geely has appointed Andy An, CEO of its EV brand Zeekr, as the new CEO of Zhejiang Geely Holding Group to enhance competitiveness amid growing domestic competition and global trade uncertainties. This leadership change comes as Geely plans to privatize Zeekr, despite the brand reporting a quarterly loss, while Geely itself has seen a significant profit increase due to strong local sales.
Earning Dip
Porsche faces a multifront crisis as China sales plunged 42% in Q1, US tariffs inflated vehicle costs, and weak global demand delayed its electrification strategy. The automaker has walked back ambitious EV targets, postponed models like the electric 718 Boxster, and abandoned plans to expand its Cellforce battery project due to slower-than-expected BEV adoption.
Its full-year revenue forecast was cut, and as many as 8,000 job cuts are expected under restructuring. Porsche's EV delays, restructuring, and reliance on European exports amid rising tariffs reveal vulnerabilities in its global supply chain, especially for suppliers linked to high-performance batteries and BEV components.
Honda expects a 60% profit drop from a $4.4B tariff hit, while Nissan suspended its outlook and will cut 11k more jobs amid $3B in exposure, as Japan's auto sector reels under extended 25% US tariffs on vehicles and parts.
Frustration is mounting in Tokyo over the US easing tariffs on China while maintaining aggressive levies on Japan, exposing diplomatic disparities. "[We] need to get some stability," said Ivan Espinosa, CEO, Nissan. The tariffs accelerate job cuts, US production shifts, and increase supplier risks tied to Japan-based exports.
Human Capital
GM will reduce shifts at its Oshawa plant starting in June, cutting pickup output and affecting up to 2.2k jobs, citing retooling plans. Unifor links the move to new US tariffs, warning of deepening instability in Canada's auto sector.
Industry Directions
Subaru is rethinking its EV investment timeline amid a 4.1% sales drop and potential $2.5B US tariff hit, joining other Japanese automakers adjusting to trade risks and Chinese EV competition. The company is considering a broader mix of hybrids and ICEs alongside its BEV plans.
Labor
Ford workers in Cologne, Germany, staged a 24h strike on May 14 over mass layoffs, costing the company millions and prompting demands for alternative restructuring plans. The cuts are part of a broader industry response to weak demand and EV transition costs.
Mergers, Ventures, Acquisitions
Mazda and CATL will co-develop EVs using CATL's modular CIIC skateboard chassis, enabling faster, more flexible vehicle development. The move supports Mazda's plan to double China production and electrify 90% of sales by 2027.
Opening
AESC has secured $1.3B in funding to build a 15.8 GWh EV battery gigafactory in Sunderland, England, to reinforce the UK's automotive supply chain and accelerate EV adoption.
Production Decrease
GM has paused work on a $55M hydrogen fuel cell plant with Piston Automotive in Detroit, citing strategic reassessment amid rising tariffs and uncertain propulsion priorities.
Stellantis has delayed the launch of the all-electric Ram 1500 to summer 2027 and the Ramcharger hybrid to Q1 2026, citing the need for extended quality validation. Both models will be produced at the Sterling Heights Assembly Plant, where Stellantis invested $235M in EV integration.
Unlike competitors, Stellantis is producing gas, hybrid, and electric versions of the Ram 1500 together to mitigate demand risks. This delay highlights how evolving EV market conditions influence supplier timelines and capital recovery for dedicated EV investments.
Production Increase
Honda is moving some CR-V production from Canada to its US plants in Indiana and Ohio to reduce tariff exposure. While Canadian production levels will remain steady, the company is increasing capacity in the US and shifting Civic hatchback production from Japan to Indiana.
Additionally, Honda is postponing an $11B investment in EV factories in Alliston, Ontario, due to declining demand in North America. CEO Toshihiro Mibe stated they are adjusting their production strategy to minimize tariff impacts, highlighting how changing trade policies and slowing EV demand are affecting long-term planning in North America.
Regulation
China has approved rare earth magnet exports to select Volkswagen suppliers, easing fears after last month's export restrictions. The move underscores the auto industry's deep reliance on China for critical EV materials amid ongoing tariff uncertainty.
A refresher from Reuters: All of Trump's tariffs and threatened trade actions
Shutdown
JLR will end China production of its models, replacing them with the new Freelander line built on Chery's platform to reset its struggling joint venture. The move aims to curb losses while targeting China's cost-sensitive market and preserving import margins.
Nissan will reportedly suspend operations at some domestic plants in Japan as part of a restructuring plan tied to anticipated record losses. Specific details regarding the affected sites and timelines are pending.
