Elm Analytics - Automotive Supply Chain Risk Digest #49 - January 12 - 18, 2018
Canadian steelmaker, Hamilton Specialty Bar, entered into receivership this week. The company was in default on a $27.6 million loan with Wells Fargo.
CHANGE IN MANAGEMENT
Carlos Ghosn has hinted that he may leave his position as CEO of French automaker Renault.
US automotive manufacturing jobs declined over the past year. This decline is likely due to the lack of a concrete trade policy and is tied to production numbers.
Surprising results from KPMG's annual survey of 1,000 global auto industry executives: over 75% think that electric vehicles will fail and that fuel cell hydrogen vehicles will be the future.
Global consumers are valuing "quality of life" more than ever compared to conventional definitions of success according to a new consumer behavior study from Yanfeng Interiors.
44,000 German workers walked out Thursday at companies including Daimler, BMW and Bosch. The labor union IG Metall and employers are in their third round of talks.
MERGERS, VENTURES, ACQUISITIONS
China's GAC Motor announced that they are aiming to begin selling cars in the US by the fourth quarter of 2019. If they succeed, they will be the first China-based automaker to sell cars in the US.
The Canadian federal government and the government of Ontario are investing up to $100m into powertrain component supplier Linamar Corporation. The investment will help create 1,500 new jobs and maintain more than 8,000.
Michigan's materials supplier, Sharpe Corp., acquired Trenton, Ohio based Magnode. Magnode is a supplier of structural aluminum automotive components and assemblies.
FCA has announced that they will be shifting Ram truck production from Mexico to their Warren, MI truck assembly plant. The shift comes along with a new $1b investment and 2,500 new jobs.
Automotive trim manufacturer, Polymax Thermoplastic Elastomers, will increase the size of its production operation in Waukegan, Illinois.
Continental opened a new production line at its Bangalore Central Electronics Plant. The facility will produce electronic control units for ABS and stability control (ESC).
Spain's Grupo Antolin is expected to add a new facility in Spartanburg, South Carolina to better serve BMW.
China's Minghua USA, a subsidiary of Jiangnon MPT Co. , will establish its North American headquarters in Troy, Michigan. The supplier manufactures bumpers, plastic products and molds.
Hanon Systems is relocating its Americas Innovation Center to Novi, Michigan where they will have more space to support their growing business. They will be consolidating other nearby locations into the new single location as well.
OEMs and suppliers have different levels of concern with changes to NAFTA.
Russia plans to tighten conditions for global automakers doing business in Russia. Most automakers in Russia currently operate under agreements signed between 2005-2007 and have significant parts expiring this year.
Recruiting skilled workers is still the biggest threat to auto suppliers.
Toyota has given itself and their subsidiary Lexus a global "all clear" in relation to the Kobe Steel product quality fiasco after an internal investigation.