Dear reader,
Super Typhoon Ragasa has left devastation across Taiwan, Southern China, Vietnam, and the Philippines. It may be days, even weeks, before we fully understand its impact on our industry.
My colleagues have compiled a list of automotive manufacturers that were within Ragasa’s cone of influence.
→ You can download it at no charge.
Ideally, every one of us would have our supply chains mapped to the deepest tiers.
However, in this moment, what matters most is ensuring your suppliers are safe. Reach out. Open the lines of communication… with them, with their suppliers, and with their suppliers’ suppliers. Start there.
If you’d like to chat, just reply or reach out. We’re here to help.
Warmly,
Nick Gaydos
Editor
Contents
CYBER SECURITY
Jaguar Land Rover restarts IT systems
Stellantis breach exposes customer information
DISASTER
Toyota halts Brazil production after storm
HUMAN CAPITAL
Bosch cutting 22k jobs by 2030
Valmet laying off 433 employees
MERGERS, VENTURES, ACQUISITIONS
Mercedes-Benz eyes stake in Qianli
Lucerne cancels Detroit forging plant
FAW acquires stake in Zhuoyu
Aptiv exploring $5B unit sale
OPENING
LG Innotek building $190M Mexico plant
Mubea, Hella open plants in Guanajuato
Toyota launches Woven City testbed
REGULATION
US-EU trade deal cuts auto tariffs
SHUTDOWN
VW pauses Zwickau, cuts Emden hours
GM extends Warren shutdown over Legionella
Stellantis suspends Poissy, Pomigliano plants
Cyber Security
Jaguar Land Rover has restarted some IT systems after August’s cyberattack, but UK production remains halted until at least next month.
Suppliers are under mounting strain as the government considers loans or parts purchases, though unions’ calls for furlough-style aid have been rejected.
Without swift action, small supplier bankruptcies could ripple across the wider supply chain.
Stellantis disclosed a breach at a North American service provider, exposing customer contact information and underscoring the rising cyber risks through suppliers faced by automakers.
Disaster
Severe storm damage forced Toyota to halt operations at its Porto Feliz and Sorocaba plants in Brazil, where roof sections collapsed onto equipment, injuring approximately 30 workers, none of whom were seriously hurt.
Production of the Yaris, Corolla, and Corolla Cross is currently on hold, and the launch of the Yaris Cross has been postponed.
Human Capital
Bosch will cut 22k jobs in its Mobility division by 2030, including 13k new layoffs, as it targets $2.65B in savings.
The shift to electric vehicles is shrinking demand for traditional components and requiring fewer workers overall.
Auto suppliers, such as Bosch, are under growing pressure as automakers bring more work in-house, and the inconsistency of the transition to EVs has disrupted supply chains.
Valmet will lay off 433 employees $, including 325 in Finland, and furlough up to 1.1k staff this summer as it restructures operations to address weak demand and profitability pressures.
The cuts primarily affect white-collar roles, with the Rautpohja site in Jyväskylä expected to be the most severely impacted.
Mergers, Ventures, Acquisitions
Lucerne International has scrapped plans for a $50M aluminum forging plant in Detroit, citing tariffs on equipment and raw materials that made the project “too risky.”
The cancellation, which cost the city 325 jobs, illustrates how trade barriers intended to spur US manufacturing can instead divert auto supply chain investment elsewhere.
Mercedes-Benz will reportedly acquire a 3% stake in Qianli Technology, a Geely-backed company, to secure access to autonomous driving systems tailored for the Chinese market.
Aptiv is reportedly exploring a $5B sale of its EDS wiring-harness unit, even as a spinoff remains on the table.
The move could shift control of a critical Low-Voltage/High-Voltage architecture supplier, affecting sourcing and program launches.
FAW is acquiring a 35.8% stake in ADAS supplier Zhuoyu to expand its presence in China’s autonomous driving technology sector.
Opening
LG Innotek will invest $190M in a new plant in Querétaro, Mexico, with an initial workforce of 630 employees. The facility will manufacture parts such as cameras, LEDs, and motors.
Two suppliers recently inaugurated new plants in Apaseo el Grande, Guanajuato, Mexico.
German firm Mubea invested $60M in a steel tube plant to supply GM, Stellantis, Ford, and Tesla, with a projected annual capacity of 36k tons.
Hella invested $15.4M in a facility that produces key fobs, electronic power steering, and body control modules.
Toyota has launched Woven City this week, a real-world testbed in Japan. By offering a controlled environment, it aims to speed up the development of technologies that will shape the future of mobility and supply chains.
Regulation
The US has confirmed its trade deal with the EU, retroactively cutting tariffs on autos and parts to 15% starting August 1. Key raw materials, such as nickel, rare earths, and magnesium, are exempt.
The tariff cut eases cost pressure on EU automakers and helps steady transatlantic trade flows.
Shutdown
VW will pause production $ in Zwickau for a week and reduce hours at Emden as demand for the Audi Q4 e-tron and VW’s ID models weakens.
With both plants building only EVs, the slowdown amplifies their excess capacity and puts pressure on suppliers tied to VW’s dedicated EV factories.
GM extended the shutdown of its Cole Engineering Center in Warren after Legionella was detected in the water systems, following two cases of Legionnaires’ disease.
The closure affects 10k employees and could delay technical development and programs.
Stellantis will suspend output at its Poissy plant in France and Pomigliano plant in Italy for up to three weeks due to soft European demand and US tariffs.
Poissy, which builds the DS3 and Opel Mokka, will pause production from October 13 to 31.
Meanwhile, Pomigliano will halt Panda production from September 29 to October 6, and Tonale production will shut down through October 10.
Nice touch with Super Typhoon Ragasa guys.
Excellent update! Thank you!