Elm Analytics - Automotive Supply Chain Risk Digest #31 - September 9 - 15, 2017
Slovakia has been a hot spot for automotive growth. However, the shortage of skilled workers threatens its expansion.
Jean-Louis Gassée: The road to self driving cars is not a moonshot. It'll be a slow, messy, incremental slog. Chris Urmson, former Google Director of Self-Driving Cars (now at Aurora), stated in an interview, "Oh the transition? I think it’s going to take at least 30 years."
In the aftermath of Hurricane Harvey, Texas auto dealers are seeing a surge in sales.
Facebook may leverage its advanced artificial intelligence and deep learning capabilities in automotive.
Volkswagen, FAW-Volkswagen and SAIC Volkswagen will recall 4.86m vehicles in China due to issues with Takata air bags.
MERGERS, VENTURES, ACQUISITIONS
Samsung has created a new $300 million fund and a dedicated business unit for developing autonomous technology within Harman.
Dutch map maker AND will collaborate with Continental. AND's location data will be combined with Continental's vehicle sensor data for advanced driving systems.
Honeywell and Lear are collaborating on connected and autonomous vehicle cybersecurity software solutions. The suppliers are focused on pairing Honeywell's intrusion detection software and security operation centers with Lear's electrical distribution systems and connected gateway expertise.
HELLA and ebm-papst will work together to create automotive actuating systems. The production of an electric purge pump will be the first joint project in 2019, to reduce CO2 emissions in vehicles.
Sweden's Autoliv is considering a split into two listed companies within the year. One company will focus on electronics and the other safety devices.
Shenda and IAC have created a joint venture, Auria Solutions. Auria will produce soft trim and acoustical products.
South Korea's GNS America will add a 40,000sf addition to its existing facilities in Holland, Michigan. The metal stamping automotive supplier is looking to increase manufacturing capacity.
Goodyear is building a new "Industry 4.0" facility in Dudelange, Luxembourg. The plant will use an "innovative" production process that will feature highly automated, interconnected workstations to produce premium tires in small batches on demand.
Inteva Products opened a new 300,000sf facility in Silao, Guanajuato. The sixth site in Mexico will produce interior systems.
Rochling Automotive has opened a new $19.1m plant in Teurel, Spain. The plant produces plastic parts and components for Ford in Valencia as well as other automakers.
Truck manufacturer Autocar is building a $120m plant in Birmingham, Alabama. The 1m sf plant will employ around 750 to build trucks for the commercial market.
Geely has begun production at its new BelGee plant in Borisov, Belarus. The Belarusian-Chinese venture will assemble 60,000 cars per year.
South Korea's Hyundai and Kia closed plants in response to Hurricane Irma this week in Alabama and Georgia.
Ford Sollers has launched a massive hiring campaign in Tatarstan to add a second shift at the Elabuga Plant. The Russian market has seen growing demand. More than 700 additional workers are needed for the Ford Kuga, Ford Explorer and Ford Transit production lines.
Throughout the year, cobalt and tungsten prices have increased by nearly 100% and 27%, respectively. With cars headed increasingly towards electrification, there is concern that these materials will face supply constraints.
Europe needs to build up its own production of electric car components before rushing to abandon the combustion engine. "We need to provide a sensible transition period that doesn’t give unwanted gifts to our Chinese friends," said Roberto Vavassori, president of the European Association of Automotive Suppliers (CLEPA) at the Frankfurt Motor Show.
China is the latest country to announce that it will ban new gasoline and diesel vehicles. A date for the ban has yet to be announced.
More than 50% of the content of cars assembled in Britain made elsewhere. Brexit will complicate automotive supply chains without significant moves soon.
Auto supplier risks are rising, due to increased exposure through recent recall trends.
Automotive supply chains will face months, if not years, of recovery after this year's hurricanes. Increasing communication with partners can reduce the legal implications of disrupted supply chains.
Florida ports are back open after several days of cleanup following Hurricane Irma, but some ports are still experiencing some restrictions. Florida's two largest auto ports closed earlier in the week.
6 speed bumps on the road to automotive supply chain success.