Elm Analytics - Automotive Supply Chain Risk Digest #70 - June 8 - 14, 2018
CHANGE IN MANAGEMENT
Who will replace FCA CEO Sergio Marchionne when he leaves after this year? Mike Manley, Alfredo Altavilla and Richard Palmer are top contenders.
Bruce McDonald, chairman and CEO of Adient, has resigned. The supplier is struggling financially. He will be replaced by Fritz Henderson, former CEO of (post bankruptcy) GM. John Barth, the current board director, will serve as interim chairman.
Amid scrutiny from investors and analysts, Tesla is cutting 9% of its global workforce. Tesla said the latest workforce cuts are affecting all departments except production workers. The company claims it won't affect its ability to reach Model 3 production targets.
China, the world's biggest auto market, is positioned as the global driver of innovation, development and investment.
Bad behavior, stupidity and leadership? Getting rid of the boy's club in a male-dominated industry is harder than it should be.
Driver-assistance systems are finding their way into motorcycles.
Kia is recalling 507,000 vehicles in the US over an electrical issue that can cause airbags not to deploy during a crash. The automaker says they don't have a fix for the yet, but that they are working on one with their supplier.
VW will pay Oklahoma $8.5m as part of a settlement over a diesel emissions related suit filed by the state in June 2016. The suit alleged that the automaker had misled consumers with false and deceptive advertising regarding their vehicles' emissions.
VW could face more fines from Munich and Stuttgart for diesel emissions cheating. This is on top of $1.2b in Braunschweig and the $30b set aside to cover US fines.
MERGERS, VENTURES, ACQUISITIONS
Toyota is the latest in a series of automakers to invest in test tracks for autonomous vehicles near the Detroit Area.
Drama continues to unfold as shareholders in German seat supplier Grammer debate a takeover by China's Ningbo Jifeng.
Pierburg, a unit of Germany's Rheinmetall Automotive is expanding its Fountain Inn, South Carolina facility. The plant produces solenoid valves for engine efficiency.
Denso is continuing its expansion at its Maryville, Tennessee plant. The plant will make EV inverters, radar components and data control modules.
hago Automotive in Iuka, Mississippi is doubling the size of its facility. The facility performs stamping, parts processing, assembly and welding for BMW.
Germany's Duerr will build a paint shop for Future Mobility Corporation's Byton in Nanjing, China. Byton plans on handling 150,000 electric vehicles at the location.
Nickel prices are at four-year highs. Speculation for EV batteries and an anticipated shortage are driving price increases.
The economics of tariffs: "The U.S. is engaged in what we might call senile industry protection as opposed to infant industry protection."
Auto suppliers are in danger of being left on a "technology island" if the Trump administration rolls back current fuel economy standards.
JLT Specialty / Resilinc: Automotive Supply Chain Disruption Report 2018 (pdf)
Researchers at Fraunhofer suggest that a shift to cellular supply chains will help accommodate consumer individualization and short delivery time.