Elm Analytics - Automotive Supply Chain Risk Digest #86 - September 28 - October 4, 2018
Car sales in Germany have fallen by 31% and in the UK by 21% following the introduction of the new WLTP testing procedures that went into effect in September.
Hitachi is planning layoffs at its plant in Harrodsburg, Kentucky. The exact number of employees to be laid off is unknown, but Harrodsburg mayor Eddie Long believes it is a significant amount.
Lyft has had more than 150,000 people sign up for a new program that asks motorists to ditch their car for a month in exchange for a bundled package of transportation alternatives. The company says the amount of interest has far exceeded the company's projections andsignals a generational shift in travel preferences.
Only two days after the SEC filed suit against him, Elon Musk and Tesla reached an agreement with the SEC. Musk will remain CEO of the automaker, but will step down from his role as chairman of the board and pay a fine of $20m.
Honda is recalling 232,000 Accord and Insight cars with faulty rear-view cameras from Panasonic.
MERGERS, VENTURES, ACQUISITIONS
Honda is joining forces with GM and its self-driving subsidiary Cruise to build a new self-driving vehicle. The car will aim to serve a "wide variety of use cases" and be "...manufactured at high volume for global deployment.".
The European Commision approved the acquisition of Italian lighting systems manufacturer, OLSA by Magna.
The sale of Toledo Molding & Die to Grammer AG has been completed by private equity firm Industrial Opportunity Partners.
French automaker PSA is launching a car-sharing service in Washington, D.C. by the end of October. The service will initially use 600 Chevrolet cars and is part of PSA's three-pronged, 10-year plan to sell vehicles again in North America.
"Are we going to be the next Blockbuster—or the next Netflix?" Transmission maker, ZF is moving into new markets to diversify business.
Toyota is forming a new mobility company with SoftBank that will combine autonomous driving, ride-hailing, and on-demand retail shopping. The service will initially focus on Japan, but is planned to be expanded overseas later.
Toyota is investing $100m and creating 50 new jobs at its auto parts plant in Blue Springs, Mississippi. The investment will expand the plant to accommodate increased production for the 2019 Toyota Corolla.
Electrical connector supplier KOSTAL is building a new $57.8m facility in Rochester Hills, Michigan. The company has been leasing a 93,000sf in the city since 2010.
Swiss APAG Elektronik Corp. is opening its North American headquarters, R&D and production facility in Windsor, Canada. APAG will provide electronics and lighting systems to FCA and Cadillac.
Vintech Industries, a molding, seals and assemblies manufacturer, is opening a new facility in Newnan, Georgia.
Ford is planning to stop building its Focus compact cars at its Pachecho plant in Argentina in May 2019. A spokesperson said it was "too early" to say if there would be any layoffs at the plant as a result.
The United States, Canada and Mexico have finally reached a deal to replace NAFTA. The new deal will be called USMCA and has most of its key provisions starting in 2020.
EU lawmakers have passed a proposal to cut CO2 emissions from cars and vans by 40% by 2030. They also set a target of reducing emissions by 25% by 2025.
Representatives from automakers and suppliers warned the US Senate Finance Committee of import tariffs disrupting automotive supply chains.
Joel Hoffmann: A case for open Black Box recorders for autonomous vehicles.
Ahead of its new EV model launch, Volkswagen has formed a biweekly task force with LG Chem to ensure the security of their EV battery supply chain. VW brand management board member Thomas Ulbrich says that the task force was created because of the "...risks in third- and fourth-tier areas, especially in these new technologies.".