Elm Analytics - Automotive Supply Chain Risk Digest #93 - November 16 - 21, 2018
CHANGE IN MANAGEMENT
Nissan chairman Carlos Ghosn has been arrested in Japan over alleged financial misconduct. Ghosn is accused of under-reporting his income, diverting corporate funds for personal use and misusing company expenses.
With Ghosn gone, the Renault-Nissan-Mitsubishi Alliance is at risk. Ghosn had also been instrumental in a partnership with Daimler.
Renault named COO Thierry Bollore as its interim CEO following Carlos Ghosn's arrest. The board has not ousted Ghosn as of yet and says that they are "unable to comment" on the situation at this time.
GM's deadline to accept buyouts has passed. Department managers have been asked to reach cost goals through buyouts and reducing spending. GM will consider layoffs in 2019 if cost goals can't be reached.
Honda is recalling 107k of its 2018 and 2019 Odyssey minivans over a problem with its power sliding doors. A fault can cause the doors to latch improperly, increasing the chance that they could open while the vehicle is moving.
Volkswagen has agreed on a settlement with semiconductor maker Broadcom to end a $1b patent lawsuit. Broadcom had filed the claim earlier this month, threatening to seek a judicial ban on the production of several car models.
Toyo Tire is spending $138m to expand its plant in White, Georgia. The expansion will add 150 jobs and increase production capacity by 2.4m tires per year.
Mazda Toyota Manufacturing has broken ground on its new $1.6b plant in Huntsville, Alabama. The plant will have a production capacity of 300,000 vehicles per year and employ 4,000 workers.
Wanhua Chemical Group is building a new $1.3b chemical plant in Convent, Louisiana. The plant will employ 170 people and will produce methylene diphenyl diisocyanate, which is commonly used for polyurethane auto parts.
694k tons of lithium have been discovered in Mali. Mining production is expected to start in 2020.
Colorado's Air Quality Control Commission has approved new low-emission vehicle standards based on those of California. The standards will go into effect starting with the 2022 model year.
The Trump administration has reportedly invited the CEOs of BMW, Daimler and Volkswagen to meet at the White House to discuss a new trade agreement.
A new report from U.S. Trade Representative Robert Lighthizer's office accuses China of continuing practices of intellectual property and technology theft. The report comes just 10 days before President Trump and Chinese President Xi Jinping are scheduled to meet.
A deal to ease the remaining metal tariffs are being complicated by the Trump administration's push for strict steel quotas. Canada and Mexico are pushing for removal ahead of the ceremonial signing for the revised NAFTA.
The first phase of a new automotive terminal at the port of Jacksonville has been completed. Upon completion, the new terminal will expand the port's automotive capacity by 25%.
Vehicles may soon avoid the busy Port of Veracruz and instead be processed in Tuxpan, a small port on the Gulf of Mexico. An upgraded terminal will soon handle 70k-80k vehicles a year.
The president of the Association of Global Automakers in the US, John Bozzell, has some thoughts on why rules outlined by the new USMCA trade agreement "may prove unworkable" for supply chains.